The Canadian Federation of Independent Business (CFIB) reports that small business debt has not decreased since the beginning of the year. In fact, the average debt is close to $170,000. The accommodation and food services sector is the hardest hit by COVID-19 with an average debt of $333,174.
“Although the overall average debt accumulated due to COVID-19 has been relatively stable for six months, paying it off will be the next major challenge for SMEs while they still have to contend with many difficulties: insufficient income, limited reception capacity, “And winter is upon us,” said Francois Vincent, vice president of CFIB.
Also, given that only 39% of SMEs have normal revenues, the CFIB calls on governments to adopt the following measures to prevent companies from taking on more debt:
- Create a “Let’s Stay Open” plan to prevent businesses from facing further shutdowns and closures.
- Maintain current COVID-19 support programs and support rates until the economy and our borders fully reopen, and small businesses can once again serve their customers in person.
- Extend the loan repayment period for the Canadian Corporate Emergency Account (CUEC) until December 31, 2024 so that everyone has the opportunity to record ordinary income.
- Providing additional financial assistance to SMEs through regional support programmes.
“Now is the time, with the federal elections, to hear the political parties demonstrate their commitment to the priorities of SMEs. Without the maintenance of assistance programs and the possibility of normal sales, François Vincent concludes, SME owners will continue to be undermined by the uncertainty surrounding their solvency and the viability of their enterprise. commercial.
Sophie Laurent is a contributor to Vaughantoday.ca, covering a wide range of topics including local news, politics, business, technology, sports, entertainment, and lifestyle. She focuses on delivering clear, balanced reporting that helps readers stay informed about current events and issues that matter to their communities. Sophie is committed to presenting accurate information, practical insights, and relevant stories in a straightforward and reader-friendly manner, making complex topics accessible to a broad audience.