Investment

Half of Canadian small businesses lose money daily in second wave of COVID: survey

Just when you thought it couldn’t be worse for small businesses during the pandemic.

A new survey from the Canadian Federation of Independent Business (CFIB) has found that the second wave of COVID-19 is hitting them even harder with further declines in sales.

Up to 51% say they lose money every day and in places like Toronto and the Region of Peel, which are subject to new provincial restrictions, it’s up to 70% who suffer daily.

In particular, hospitality businesses like restaurants and hotels (76%) or arts and entertainment businesses like gyms and halls (69%) were more likely to report even lower sales.

Small businesses still haven’t recovered from the first wave of COVID-19 lockdown measures. In fact, 37% of all businesses in Canada say they lose money every day they are open, ”CFIB President Dan Kelly said in a statement.

“The new round of restrictions in several regions is already proving devastating for them, especially as new government supports remain in the development stage,” he said.

CFIB urges all levels of government to support small businesses by making the necessary changes to federal assistance programs.

The federation would like to see a 90% top-up for the Canada Emergency Wage Subsidy; the expansion of the Canada Emergency Account for Businesses (CEBA) loan program of $ 20,000 with an additional forgiveness portion of $ 10,000; a 90% top-up to the new Canada Emergency Rent Grant (SCRU); and retroactive rent support to businesses whose owners refused to participate in Canada Emergency Commercial Rent Assistance (AUCLC) from April to September.

“An alarming 71% of small business owners say governments need to do a better job of reporting health statistics related to COVID-19 in order to support consumer confidence,” Kelly said in a statement.

“A growing number of small businesses feel punished by provincial governments despite important steps taken to protect the health and well-being of their customers and employees,” he said. “This has to change. “

Copyright Postmedia Network Inc., 2020