Regional assistance programs are ill-suited to the new restrictions on and indebtedness of SMEs

Category In: Business, COVID-19
Threads : Surveys, Opinions and Research, Economics, Small Business Services

MONTRAL, May 6, 2021 / CNW / – In the face of the growing number of provinces confined to the country, the Canadian Federation of Independent Business (CFIB) believes that regional support programs for small and medium-sized businesses are not up to the great hardships they face – they are suffering. TheEvaluation Of the major provincial programs, released today, reveal large gaps and less support to help small and medium-sized businesses that have been hit by the third wave of COVID-19.

After more than a year of closures and restrictions, small businesses have accumulated massive debts, and assistance from county governments is no longer sufficient. In some provinces, the programs no longer exist, yet SMEs are forced to close again not knowing when they will be able to reopen their doors. In other cases, as in the case of Qubec, the complexity of accessing them limits access to entrepreneurs, even if help continues to be necessary. Can provinces do more to help SMEs? Francois Vincent, Qubec Vice President at CFIB, confirms.

To assess the reach of regional assistance programs, CFIB conducted four case studies involving different companies, including a restaurant serving on-site food, a small retail store, a dry cleaner and a gym. It turns out that in most cases, programs cover less than a tenth of the average new debt incurred by SMEs due to COVID-19.

Company software
Currently, small and medium enterprises in four provinces (ManitobaAnd the OntarioAnd New Brunswick and Newfoundland andLabradorIt can no longer benefit from aid programs, as many of it are no longer in effect despite new restrictions imposed across the country due to the third wave of COVID-19.

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The minimum amount of help
Several counties offer minimum grants ($ 10,000 or less) to severely restricted small and medium businesses.

Startup companies excluded
Many companies created in 2020 have not been able to benefit from federal aid programs. In fact, according to the CFIB case study, three Atlantic counties (Newfoundland,LabradorAnd le-du-Prince-douard and New Brunswick) to exclude the June 2020 gymnasium.

Core firms are excluded
While some provinces provide financial support to most SMEs denouncing the massive loss of revenue, others exclude companies that are allowed to remain open, despite their sales having decreased dramatically due to government decrees (such as cleaners). The companies in this case did not receive any assistance of any kind, with the exception of British Columbia, Alberta And Newfoundland andLabrador.

The CFIB calls on all provinces to act so that all businesses affected by the closures and restrictions can receive sufficient direct financial assistance so that they can reopen. The procedures for requesting and approving files should be simplified and it would be essential to release funds as soon as possible.

The worrying situation should make all governments realize that restrictions and closures are placing a burden on SMEs that have become increasingly difficult to bear. Hundreds of thousands of them are planning to close forever. Now that the pandemic has entered its second year, governments will have to do more to ensure that SMEs survive and make sure they can pay off their COVID-19-related debt because they are, remember, an average of $ 170,000 in Canada?

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CFIB invites all small business owners to join their voices to get things done. How? To sign on ptitionRequire provinces to provide them with more aid. Small and medium businesses in Quebec can make their voices heard by adding their names The petition Targeting the provincial government.

About CFIB
The Canadian Confederation of Independent Business (CFIB) is the largest group of small and medium businesses in the country, with 95,000 members across all industries and regions. It aims to increase the chances of success of small and medium-sized companies by defending their interests with governments, providing them with personal resources and providing them with exclusive savings. Visiting fcei.ca To know more.

Source: Canadian Federation of Independent Business

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