Small business owners benefit from government aid

Closings of non-essential services during the Covid-19 crisis is forcing small business owners to use government aid to survive.

As the end of emergency shutdown measures remains unclear, business owners continue to face issues like profit losses and overdue rent. Linden Crain is studying business at the University of Windsor and owns a small marketing company. He said his company is no stranger to the difficulties the enforced shutdown creates.

“At the moment, most people are probably on tight budgets, so it is harder to sell across both online and from a brick-and-mortar store,” Crain said.

Quarantine-like measures have forced workers into job layoffs and shorter work shifts. As a result, more than 45 per cent of Canadians are reducing their spending according to a survey from McKinsey Research.

Government aid is providing a way to soften the blow. These include the Canada Emergency Business Account providing interest-free loans up to $40,000 and the Canada Emergency Commercial Rent Assistance lowering rent by 75 per cent.

Paying attention to these initiatives is recommended, according to Siddique Sheikh, special projects manager of the Downtown Windsor Business Accelerator.

“Listen to the government in terms of what they are saying of the personal safety, and then seeing what they’re providing financially to be able to weather the storm,” said Sheikh.

Despite the federal government’s decision to commit $107 billion for financial relief during quarantine, more challenges may be ahead.

An ongoing survey by the Canadian Federation of Independent Business finds 50 per cent of small businesses must earn more than 75 per cent of their typical sales over this upcoming summer to be worthwhile.

Linden Crain also said the slowed pace of life in lockdown gives him an opportunity to plan ahead for his business.

“During this time, it’s always good because you can spark new ideas because you’re sitting at home and you’re thinking a lot,” Crain said.

Aside from this, Siddique Sheikh said the future of small businesses depend on what Canada’s political leadership does now.

“It’s really reliant on the government right now to see where they can help as many Canadians as possible,” said Sheikh.