Faced with the new restrictions, SMEs are demanding immediate financial support

Faced with the new restrictions, SMEs are calling for immediate financial support

Considering that the new federal support programs are too limited to support all the small and medium-sized enterprises which must to face further business losses due to the restrictions, the Canadian Federation of Independent Business (CFIB) is calling for immediate financial support.

In an open letter published by Métro and sent to all Canadian Premiers , the CFIB and Restaurants Canada ask for immediate help from the various governments.

As Christmas approaches, a very prosperous period for businesses and restaurants, most Canadian provinces have announced a new set of restrictions, including closures of certain sectors.

“In addition, the strong fear that has taken hold among the population has meant that, even in areas without new restrictions, many more consumers are staying at home, canceling reservations, canceling events and checking out. online shopping, ”we wrote in the open letter.

In fact, from the announcement of compulsory teleworking in Quebec last week, Montreal restaurants had to deal with a wave of last minute cancellations. The owners who were expecting groups of several people for the festivities of years were taken aback. They must suffer significant losses, both financially and food and in human terms.

New federal programs insufficient

If the federal government adopted Bill C- 2 which aims to provide additional support in response to COVID-19, these new support programs are “incredibly limited in scope,” says CFIB.

Indeed, data collected by CFIB before the Omicron variant crisis shows that 80% of small businesses in need of help will not be eligible for new programs. & Nbsp;

The Tourism and Hospitality Stimulus Program (PRTA) requires a 40% loss of income for the current month and for the past 12 months. For its part, the Stimulus Program for the Hardest Affected Businesses (PREDT) requires a loss of income of 50% for the current month and the last 12 months to be eligible. & Nbsp;

” The reality is that tens of thousands of SMEs across Canada will receive no government support as government restrictions dramatically reduce their ability to serve customers and public health warnings cause many consumers to prefer to stay at home. them ”, we deplore in the open letter.

In addition to reassessing all restrictions, the signatories also call on the various governments to ensure that the rhetoric of public health officials does not heighten the fear among the population. & Nbsp;

Risk of bankruptcy

Even before the arrival of Omicron, nearly two-thirds of SMEs in Canada had not seen their sales return to normal levels, says CFIB with 95,000 members in all industries and regions. And among this group, almost a quarter say that their business could go bankrupt within the next six months, it is added.

This is why the establishment of financial assistance is “Vital” for these companies.

This is also what the general manager of downtown Montreal, Glenn Castanheira, demanded in an interview with Métro last Thursday. “Restaurant owners and traders were the first to sacrifice their economic health for public health. This is important to remember. These people are struggling, ”he stressed.

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