The Canadian Federation of Independent Business (CFIB) has released the results of a recent survey conducted over the long weekend, which suggests that over 55% of small businesses are struggling to survive through the coronavirus pandemic, and without some form of rent relief, they may have to shut down their operations.
Even with the federal government’s unveiling of small business financial aid, including the Canada Emergency Commercial Rent Assistance (CECRA) as well as the Canada Emergency Business Account (CEBA), it is still not enough, according to Laura Jones, vice-president of CFIB. She urges the federal government to increase the forgivable loan portion of the CEBA, as well as expand the eligibility criteria so more small businesses can apply. Implementing such measures will help cover some of the shortcomings stemming from the CECRA.
With June 1 rent being due in short time, many small businesses are bracing for a very difficult financial road ahead. According to the survey, 65% of respondents feel both provincial and federal governments have taken too long to issue some form of rent relief, with 50% saying they are unable to pay June’s rent if they don’t receive some form of financial help. Meanwhile, 22% of small business owners anticipate eviction, with over 55% saying rent relief could be the ultimate deciding factor whether or not their business survives through the economic hardships of COVID-19.
Information for this briefing was found via the Canadian Federation of Independent Business. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.