CFIB Warns of Further Business Closures Across Canada in Wake of Additional COVID-19 Shutdowns

As some regions in Canada move to impose stricter COVID-19 conditions and lockdowns, an increasing number of businesses may not be able to withstand the financial pressure, and risk shutting their doors permanently.

According to the Canadian Federation of Independent Business (CFIB) CEO Dan Kelly, approximately 225,000 businesses across Canada risk permanent closure as a result of pandemic shutdowns. Kelly notes that nearly half of Canadian businesses have seen their sales drop amid the second wave – even those that have not been affected by additional rounds of restrictions.

Despite being eight months into the pandemic, many government support systems aimed at Canadian businesses have yet to be smoothed out or even put into place. The government has yet to follow through on its promised Canada Emergency Business Account (CEBA) expansion, as well as provide further funding for wage subsidies. As a result, Kelly is urging governments to minimize the impact of shutdowns by concentrating them only on specific problem areas, and then lifting them as soon as safely possible.

CFIB’s comments follow announcements from several provinces regarding further economic closures. Manitoba has now moved into the critical level of its pandemic response system, which mandates that all non-essential businesses including personal services, retail stores, religious gatherings, and gyms close, while social gatherings are limited to immediate family members only. Likewise, the City of Toronto has extended its ban on indoor dining for another month, which will likely put further strain on at-risk businesses such as restaurants.

However, it also appears that the pandemic may have caused a shift in consumer behaviour, which could further threaten the viability of many businesses across Canada. According to a recent survey conducted by the Agri-Food Analytics Lab at Dalhousie University, an increasing number of Canadians have shifted to e-commerce in leu of brick-and-mortar shopping for their food needs, and and as a result, the restaurants and grocery stores that are currently struggling amid pandemic shutdowns will likely face further obstacles even after the pandemic.


Information for this briefing was found via Bloomberg and the Agri-Food Analytics Lab. 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.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Sona Nanotech Withdraws Health Canada Application For COVID-19 Test Due To Feedback From Regulator

In what is a major blow to shareholders of Sona Nanotech (CSE: SONA), the company...

Wednesday, November 25, 2020, 02:31:06 PM

Trudeau Proceeds with ‘Grocery Rebate’ to Address Cost of Living Crisis

The Liberals’ promised ‘grocery rebate’ is coming to eligible Canadians in early July. The legislation...

Friday, May 12, 2023, 03:04:00 PM

Housing Minister Doesn’t Want Mayors To Be Blamed For The Housing Crisis, So Canadians Blamed Him Instead

Minister of Housing and Diversity & Inclusion Ahmed Hussen penned an op-ed castigating the opposition...

Saturday, July 15, 2023, 11:27:00 AM

Canada Plans to Reduce Temporary Resident Influx

Canada is taking steps to rein in the surging number of temporary residents entering the...

Friday, March 22, 2024, 03:55:00 PM

Global Economy Forecast to Contract by 5.6% in 2020 Due to Pandemic

The coronavirus pandemic has plunged the global economy into the worst recession in over 80...

Tuesday, December 15, 2020, 11:57:00 AM