Fears of a second wave are hitting small firms with further drops in sales: More than a third losing money every day | CFIB
Toronto, October 29, 2020 – Half of small businesses across Canada report they have seen a further drop in sales as a result of fears of a second wave of COVID-19, finds the latest survey by the Canadian Federation of Independent Business (CFIB). In some regions that are under new restrictions, like Winnipeg and Toronto, that number rises to as many as 70 per cent.
“Small businesses still haven’t recovered from the first wave of COVID-19 lockdown measures. In fact, 37 per cent of all businesses across Canada report they are actually losing money every day they are open,” said CFIB president Dan Kelly. “The new round of restrictions in several regions are already proving to be devastating to them, especially as new supports from government remain in the development stage.”
|Select regions* under new government restrictions||Businesses that have seen a further drop in sales as a result/fear of the “second wave”||Businesses losing money right now for every day they are open|
|Toronto||70 per cent||50 per cent|
|Winnipeg||70 per cent||54 per cent|
|Peel||68 per cent||55 per cent|
|Quebec City||61 per cent||46 per cent|
|Ottawa||59 per cent||48 per cent|
|Montreal||57 per cent||45 per cent|
|Gatineau||55 per cent||44 per cent|
|Canada||51 per cent||37 per cent|
*The samples for some regions experiencing lockdowns were too small to include in this chart
While businesses in the hospitality (76 per cent) and arts and recreation (69 per cent) sectors were more likely to report that sales were down due to fears of a second wave, businesses in sectors unaffected by new provincial restrictions have also seen sales drop recently. A “second wave” is therefore likely to have widespread effects on the economy, and small businesses will need all the support they can get during these critical times.
CFIB urges all governments to support businesses through the coming months by:
- Provide a top-up to 90 per cent for the Canada Emergency Wage Subsidy (CEWS) for firms subject to additional COVID-19 related closures as is planned for the rent subsidy
- Immediately deliver on promised expansion of the Canada Emergency Business Account (CEBA) loan program by $20,000 with an extra $10,000 forgivable portion
- Immediately deliver on the new Canada Emergency Rent Subsidy (CERS), ensuring all firms subject to additional COVID-19 related full or partial closures can access the top-up to 90 per cent
- Ensure new businesses started in 2020 can access all the major government support programs, including CEBA, CEWS and CERS
- Deliver retroactive rent support to those firms whose landlords refused to participate in the Canada Emergency Commercial Rent Assistance (CECRA) from April to September
- Share all evidence from provincial health authorities that have led to decisions related to additional business closures
- Announce additional provincial supports for all firms subject to new closures
“An alarming 71 per cent of small business owners say that governments need to do a better job at reporting COVID-19 related health statistics in order to support consumer confidence. A growing number of small firms are feeling punished by provincial governments despite taking major steps to protect the health and well-being of their customers and employees. This needs to change,” Kelly concluded.
For media enquiries or interviews, please contact:
Milena Stanoeva, CFIB
Source for CFIB data
Preliminary results for COVID-19 recovery survey – October 2020, online survey started October 22, 2020, n = 3,901. For comparison purposes, a probability sample with the same number of respondents would have a margin of error of +/-1.6%, 19 times out of 20.
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 110,000 members across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.