The Canadian Federation of Independent Business (CFIB) has sent a letter to Canada’s Finance Minister with a list of measures small businesses need to recover from the COVID-19.

The letter was sent out to Bill Morneau prior to his fiscal update on Wednesday.

“Small businesses are facing a long, bumpy road ahead of them. In fact, 14 per cent are considering bankruptcy or winding down altogether,” said CFIB president Dan Kelly, in a news release. “A retooling of many of the critical federal support measures is vital if we want to see fewer small business casualties from the economic crisis associated with COVID-19. Small firms also need government to move far more quickly in delivering critical program changes as tens of thousands are slipping through the cracks and not getting the support they desperately need.”

The CFIB’s recommendations include:

  • Allowing more businesses to participate in the Canada Emergency Wage Subsidy (CEWS) by removing or reducing the 30 per cent revenue drop test or by creating a sliding scale to allow those with lower revenue drops to access a smaller subsidy;
  • Extending the Canada Emergency Response Benefit (CERB) for Canadians out of work, but requiring recipients to be available and looking for work and ensuring benefits stop if an employee is offered their old job back or offered a new job;
  • Raising the amount of the Canada Emergency Business Account (CEBA) loan from $40,000 to $60,000, increasing the forgivable portion from 25 per cent to 50 per cent, and allowing all businesses (including new firms and those with personal banking accounts) to participate;
  • Getting the Canada Emergency Commercial Rent Assistance (CECRA) directly to the tenant, reducing the 70 per cent revenue loss requirement and extending the program through September; and 
  • Changing federal messaging away from “stay home” to “safely return to work, shopping, recreation and regular business” and promoting small business at every opportunity.

“Small business owners are worried that customers won’t come back quickly enough for them to survive the next few months. They need assurance that they will have support through the recovery phase to get back on their feet,” said Corinne Pohlmann, CFIB’s senior vice-president of national affairs. “We’re looking forward to today’s fiscal update and working closely with the federal government in the months ahead to advise them on the best support measures for small businesses.”

For more details, read CFIB’s letter on small business recovery