Popular Vancouver Mexican Restaurant Permanently Closes Due to Pandemic Recovery Setback
La Catrina, a beloved Mexican restaurant in Vancouver, has made the difficult decision to permanently close its doors. The restaurant, located on Denman Street in Vancouver’s West End, shut down operations in late October due to financial challenges caused by the ongoing pandemic.
The owner’s stepson, Jose Mariscal, expressed the family’s sadness over the closure, stating, “It was really hard to make this decision. It was a beautiful experience running the business here in English Bay. There were a lot of events here, but the winters are slow and rent is expensive. We could not afford to pay back our $60,000 CEBA loan.”
The Canada Emergency Business Account (CEBA) loans were designed to assist businesses struggling due to the COVID-19 pandemic. However, many restaurants, like La Catrina, are finding it difficult to repay these loans, especially with the ongoing challenges they face.
BC Restaurant and Foodservices Association (BCRFA) CEO, Ian Tostenson, stated that more and more restaurants in British Columbia are facing similar situations. He expressed disappointment in the current state of affairs, stating, “Out of the 15,000 restaurants in B.C., at least half of them are not making money or are losing money. We are getting hit by all sides, it’s death by a thousand cuts.”
Tostenson pointed out that very few restaurants have the financial means to repay their CEBA loans at the moment. He emphasized the rising costs, government regulations, and lack of action by the federal government as contributing factors to the industry’s struggles.
In response to these challenges, the BCRFA has requested an extension of up to two years for the repayment of CEBA loans. However, Tostenson noted that the federal government has been unwilling to consider this proposal.
British Columbia Premier David Eby has also joined the call for an extension of loan repayments. Eby, along with all other premiers in Canada, sent a letter to Prime Minister Justin Trudeau requesting relief for small businesses. Eby highlighted the rising inflation and interest rates that are further burdening businesses as they try to recover from the pandemic.
In British Columbia alone, over 122,890 businesses were approved for CEBA loans, amounting to more than $6.6 billion. The struggle to repay these loans has put many businesses in a precarious financial situation.
The federal government’s response to these requests for loan repayment extensions remains uncertain. With the deadline for repayment looming, small businesses like La Catrina continue to grapple with the challenges of operating in a post-pandemic world.
Headlines:
- Popular Vancouver Mexican Restaurant Permanently Closes Due to Pandemic Recovery Setback
- Vancouver’s La Catrina Falls Victim to Ongoing Financial Challenges
- BC Restaurants Struggle as CEBA Loan Repayments Pose Burden
- BCRFA Requests Extension for CEBA Loan Repayments, Federal Government Remains Unresponsive
- Small Businesses Nationwide Seek Relief as Loan Repayment Deadline Looms