Up to 225,000 Canadian businesses could close due to COVID: CFIB CEO

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More businesses are at risk of shutting down permanently as parts of the country impose more stringent COVID-19 closures, warns the head of the Canadian Federation of Independent Business (CFIB).”We are already seeing half of the businesses in Canada – even those not affected by other cycles of shutdowns – say that their sales have plummeted as a result of Wave 2,” said the President and CEO CFIB Dan Kelly in a television interview. with BNN Bloomberg Wednesday. “These companies are already weakened.”

Before the second wave of infections, CFIB estimated that 160,000 businesses in Canada would go bankrupt before the pandemic was over. Kelly brought that number to 225,000, or more than one in seven.

“Governments are still trying to get these programs in place – eight months later,” Kelly said, referring to federal supports such as the promised expansion of the Canada Emergency Business Account (CEBA) and funding. additional by a wage subsidy.

Kelly is urging governments to make the closures brief and targeted to minimize the impact of a second round of business closures.

“Our advice to provincial governments is: ‘Please do not put in place blanket shutdowns of the entire economy. If there are cases where you need to do it, go surgical to the areas or business activities where the problems originate – and fix them as quickly as possible, ”he said.

“Second, make sure the programs are in place and provide the money immediately.”

Kelly’s comments come a day after the city of Toronto extended its ban on indoor eating by 28 days, and Manitoba announced it was forcing non-essential stores to close in an effort to contain the virus.

Andrew Oliver, managing director of the Oliver & Bonacini restaurant group, called Toronto’s decision “extremely disappointing” and said the city “is walking in the throats of restaurants”.



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