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Calgary business owner is frustrated with RBC for accessing small business loans

CALGARY – Landon Johnston was only able to respond to emergencies due to the COVID-19 pandemic.

Instead, Johnston said his bank (RBC) was giving him the opportunity to roam online and that he was not given access to funds for which he qualified.

“As of now, they have a stranglehold from people struggling with it and there is nothing (I) can do about it,” he said.

Canada Emergency Business Account (CEBA) has set up a small business loan of up to $ 40,000 for those who qualify.

If the balance of the loan is repaid by December 31, 2022, up to $ 10,000 of the loan will be granted.

The accounts are facilitated by Canadian banks.

Despite numerous calls to the hotline, emails to RBC representatives and a phone meeting, Johnston said he was not given a clear reason why he could not access funds.

“I’m exhausted,” he said. “A lot of companies will go under.”

In a statement to CTV News, a spokesman for RBC said, “There are no problems with the system and it is neither RBC’s intention nor our interest to prevent customers from accessing CEBA,” said AJ Goodman.

RBC customers who meet government eligibility criteria will see a banner message on the Business Online Banking pages to apply for CEBA online.

Since the program was launched, the bank has processed 60,000 approved CEBA applications, Goodman said.

He also said that RBC will reach out to more customers on Friday to apply for CEBA through them as the government expanded wage eligibility requirements.

According to a Canadian government website, CEBA requires applicants to receive a labor income between $ 20,000 and $ 1.5 million in 2019.

The borrower (should) “have an active business control / operating account with the lender opened on or before March 1st”.

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