VANCOUVER -- Increased debt, struggling sales and ongoing uncertainty are still plaguing small businesses a year into the pandemic, according to a national advocacy group.

On Monday, the Canadian Federation of Independent Business (CFIB) called on governments to keep support programs going, including in B.C., where they estimate tens of thousands of businesses could still be at risk of shutting down.

Data released by the group showed while 65 per cent of small businesses in B.C. are now open, less than half (45 per cent) have returned to full staffing levels, and just over a third (35 per cent) are back to making normal revenues.

Last March, East is East restaurants in Vancouver went from customers dining in at two locations, to only having one takeout window open for months.

Manager Hira Humayun said their West Broadway location was shut down for three months, while they maintained sales through the takeout window at their Main Street location until from March 15, 2020 until July 1st.

“We had to lay off everybody. I was the one who was the barista, the hostess, the food runner,” she said. “From 40 people to three people. It was a very, very difficult change overnight.”

Like other small businesses, the restaurants adapted to the new normal over the following months, and eventually were able to welcome customers back inside. But things still aren’t the same as they were before COVID-19 hit.

“We’ve recovered slightly,” Humayun said. “However, when it comes to sales, we are on less than 50 per cent of the capacity right now...the way the tables have to be distant, you can not even maintain a 50 per cent, you have to go lower than that to keep your staff safe.”

Humayun said there was help from a rent subsidy, and they are now applying for a provincial grant to set up an online ordering system. However, for now, revenues have not recovered.

“The sales are very low. Very low,” she said. “We have got some good days, some bad days. And the way the restaurant industry works, the margins are already very low for the profits.”

The CFIB says small businesses in B.C. have also taken on an average of $138,000 in debt. Senior policy analyst for B.C. and the North Muriel Protzer said it may be harder for businesses now than it was at the beginning of the pandemic.

“Going into March 2020, a lot of businesses would have had reserves to rely on, to help hopefully finance some of those difficulties they had with costs initially,” Protzer said. “It has been an incredibly difficult year, and coming out of that and being able to transition to economic recovery, we’ll definitely need to see revenues going up again.”

Protzer said her group surveyed small businesses in B.C. about whether they are actively considering closing or winding down their business.

“Our mid-range estimate for British Columbia is 25,000 businesses who may be at risk of closing,” she said. “Now that represents about 15 per cent of all businesses in British Columbia...that’s 300,000 private sector jobs we’re talking about.”

The CFIB said over 40 per cent of small business owners in B.C. reported feeling overwhelming amounts of stress. A similar number are now planning to delay retirement.

While more businesses have added an online component to help reach customers, Protzer said that doesn’t work for everyone. She said governments need to continue support programs, as well as tax deferrals and debt relief.

“They were important in 2020, they will be even more so in 2021,” she said. “We’re going to need to see those lifelines continue throughout this year, to make sure that we can start transitioning to programs and policies that really spur economic activity and growth.”

B.C. Jobs Minister Ravi Kahlon said the province is committed to continue supporting businesses.

“We know that the next few months are just going to be as challenging as the last few,” he said. “And so our supports are going to remain.We continue to engage with the federal government about their supports and ensuring that they’re also at the table, supporting businesses, for as long as we need to get our economy up and running and our businesses more stable.”

The province said they’ve now approved over $80 million in recovery grants for small businesses since the program was extended last week, and the threshold for lost income lowered from 70 per cent in March or April of last year to 30 per cent anytime after March 2020. Businesses now have until Aug. 31 to apply. The original deadline was the end of this month.

The program had received criticism for being too slow to dole out the $300 million set aside to help businesses. On Monday, the province also confirmed there are 115 businesses who applied under the old criteria that now qualify for help since the changes.

Humayun would like to see grants or benefits to help with the increased training that is necessary now, or to help with payroll.

She added their loyal customers are a big part of what’s helped keep them going over the past year.

“For us, if we didn’t have the community support, I believe we would not be operating,” she said.

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