One third of Canadian small businesses who have had to close due to the COVID-19 crisis are unsure if they will be able to re-open, says a new survey by the Canadian Federation of Independent Business which was released on Tuesday.
While current federal support programs like wage subsidies are viewed positively by business owners, much more is required to addressed ongoing fixed costs, such as rent, said the CFIB.
“Putting in place a 75 per cent wage subsidy was terrific news and we are already hearing from business owners who have delayed layoffs as a result. Stress among business owners is very high and it’s critical that the wage subsidy and other measures are accessible to as many businesses as possible to avoid a flood of permanent closures in the weeks and months to come,” said CFIB president Dan Kelly in a news release.
The survey found:
- 68 per cent viewed the wage subsidy program as helpful (despite limited details being available);
- 71 per cent said deferring GST/HST payments will be of assistance;
- 53 per cent rated the new Canada Emergency Business Account positively;
- 56 per cent said they have no more capacity to take on debt during this emergency;
- 21 per cent remain fully open, 31 per cent are fully closed, 46 per cent are partially shut down; and
- The average cost of COVID-19 on small business is $160,000.
CFIB is asking provincial governments to offer more property tax relief and for direct help with rent and mortgage payments. It is also asking the federal government to delay its planned carbon tax increase.
“The burden of the federal carbon tax falls heavily on small business,” said Kelly. “Now is not the time for a 50 per cent tax hike, particularly as businesses cannot focus on researching the small rebate programs for which they may be eligible. We urge the government to halt tomorrow’s expansion so business owners can catch their breath.”
Here are the full survey results.
