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I've been asked a lot of what would happen to small business if a second wave of COVID-19 prompts a further round of economic shutdowns. Here are a few thoughts.
1. In March, governments bluntly shutdown most of the small business economy in order to protect society. Support programs to help small firms survive were just not in place. This was, to an extent, understandable.
2. It took months to get programs up and running and governments did quite a poor job of listening to what was needed. But, with some programs like the wage subsidy, they got there.
3. But 6 months into the pandemic, and there remain major gaps. Far too many firms still struggle get access to a very basic $40,000 LOAN to keep their lights on.
Rent support remains a big mess, with very few qualified firms getting the help they were promised. Again, 6 months after the start of the pandemic.
Almost a third of small firms remain closed or are partially closed (like most restaurants). Three-quarters have sales far off normal levels. Many report they are losing money everyday they are open.
Now, provinces are beginning to shut-down sectors once again, such as BC's shutdown of nightclubs and banquet halls.
While I am not in a position to pass judgement on decision from a health care perspective, I am able to comment on the economic fallout.
At this stage, there are no excuses for governments not to get this right. And get it right immediately. If governments need to shutdown businesses once again, serious economic supports will be needed for affected sectors on day 1.
Typically wages and rent are the biggest expense lines for most small businesses. Ongoing support for both will be needed if governments decide a firm needs to close to protect society.
Forgivable loans are also needed to help small firms cover other expenses.
While I am praying no additional shut-downs will be necessary, I want to ensure any such announcements include what government will be doing to help the business survive.
And any new essential services rule needs to be administered fairly - ensuring it does not give an advantage to one size or model of business. The retail rules in March gave Amazon and big box stores with grocery aisles a massive advantage over small retailers.
CFIB will be watching carefully over the fall, working to fix the gaps in current programs & advocating for all small firms every single day.
If you have been pleased with our work so far, I'd love to have your independent business as a member. Even if you cannot afford a fee right now, we welcome your participation. https://www.cfib-fcei.ca/en/cfib-introductory-offer-sign#:~:text=CFIB%2C%20is%20committed%20to%20helping,savings%20benefits%20our%20members%20enjoy.&text=Plus%20you%20will%20be%20able%20to%20enjoy%20our%20member%20exclusive%20savings%20programs.
My team of 400 staff have taken over 50,000 individual calls from business owners since the start of this crazy year - an all time record. We've served nearly 10,000 business owners who were not CFIB members. We have capacity to help you too.