VANCOUVER -- How much longer until it just doesn’t add up? It’s a question many small business owners are grappling with as the pandemic roars on.
The coronavirus crisis has created a volatile environment that's already forced many businesses to close their doors indefinitely. But now, there may finally be some more relief on the way for owners and operators of retail stores and restaurants. The federal government has announced a new and long- awaited rent subsidy program.
According to a recent report from the Downtown Vancouver Business Improvement Association, at least 53 street-level businesses have already permanently closed since B.C.'s state of emergency was declared in mid-March. Foot traffic has also dropped significantly – the September daily average of pedestrian traffic along downtown’s retail corridor is less than half of what it was for the same period last year.
“Everyday we wonder is this going to work,” said Brendan Ladner, co-owner of SMAK Healthy Fast Food. “The stress that we feel as small business owners is unbelievable. There’s no money being generated, we’re barely paying our own staff. So mathematically, is there a spreadsheet that won’t just explode as we try to enter these numbers?”
But now, businesses struggling to pay their bills because of the COVID-19 pandemic will be able to start applying for a commercial rent relief program. The federal government is replacing an earlier rent- support for businesses introduced in the spring when pretty much everyone was forced to temporarily shut down.
“There’s a lot of anxiety on the ground right now for small businesses,” said Muriel Protzer, B.C. senior policy analyst for the Canadian Federation of Independent Business. “Business is nowhere near usual right now, in fact only a third of small businesses in British Columbia are making even close to normal revenues.”
The new program will cover up to 65 per cent of rent or commercial mortgage interest on a sliding scale based on revenue declines, with an extra 25 per cent available to the hardest- hit firms.
Ladner said government support is the only thing propping some businesses open. “The only reason that we’re open today is because of the programs the government has launched, now for us to survive we’re going to need those programs to continue. Without those supports, businesses like ours, simply cannot survive.”
The Canadian Federation of Independent Business estimates that Canada may lose between 55,000 and 218,000 additional small businesses before the end of the pandemic.
With files from The Canadian Press
