Grassroots Coalition of Small Canadian Businesses Band Together to Save the Industry

Date:

Share post:

A grassroots coalition of small businesses across Canada, united in its opposition to a debt-forward solution to the COVID-19 economic crisis, has issued a dire warning about the state of those businesses as they face paying rent on April 1.

A recent survey by SaveSmallBusiness.ca found that 75.7 percent of small businesses report a drop of 80 to 100 per cent in revenue and another 11.2 percent report a decline of 60 to 80 percent.

The survey found that 37.9 percent will not be able to pay April rent, while an additional 32 percent will be able to make April, but not May. Therefore 69.9 percent of respondents will be in default of their tenancies by May 1.

The organization’s website was started on March 22 by seven small businesses from different sectors: The Discourse, Social Capital Partners, Impact Bridge, Dageraad Brewing, Sun Peaks Independent News, Tangent Cafe, and Iskwew Air. Less than 24 hours later, more than 2,500 small businesses had joined this movement.

SMALL BUSINESSES ALONG EGLINTON AVENUE WEST, TORONTO. PHOTO: JESSICA FINCH

The website is managed by The Discourse, a digital news media company in Vancouver.

Jon Shell, Managing Director & Partner of Social Capital Partners in Toronto, and co-founder of the movement, said recent announcements by the federal government to support small business have received significant praise.

Increases to wage subsidies, more generous loans, and deferral of sales tax collection will all help many companies. But local small businesses – “main street” businesses – will likely not benefit from these supports. These businesses, forced in many cases to close in order to protect their communities from the COVID-19 public health crisis, have largely laid off their staff. They have also expressed limited interest in taking on additional debt, on any terms, as indicated by the almost 22,000 businesses who have signed a petition at savesmallbusiness.ca.

“We’ve been advocating for a program that would cover some of the fixed costs of main street businesses or they’re all just going to shut,” said Shell.

SPADINA AVENUE NEAR COLLEGE STREET IS HOME TO NUMEROUS SMALL BUSINESSES, INCLUDING A NOTABLE MUSIC STORE. PHOTO: CRAIG PATTERSON

“The solution the government has right now is this loan program but people just can’t sign loan agreements. A lot of them English is a second language, they’re not financially sophisticated, they’re barely getting by as it is, their lawyers and accountants are not available. And then we’re asking banks who can’t even handle mortgage deferments, how big is their back log, to roll this thing out in time to save small business.

“Our proposal is a landlord-friendly proposal. We put a proposal that doesn’t require legislation where the federal government can pay money directly to landlords to fund a portion of rent during the next three months. It allows the landlords a framework to work with their tenants to get through this. They don’t get all their money but they get a lot of it.”

The organization recommends the following:

  1. That the federal government directly provides aid to commercial landlords in order to provide a financial incentive for them to voluntarily reduce or waive rent for their tenants;

  2. That provinces be encouraged to put a moratorium on commercial lease lockouts, preventing landlords from locking out tenants on April 1 while the implementation of this strategy is developed;

  3. That all levels of governments put significant public pressure on banks to defer property debt principal payments without accruing interest;

  4. That the federal government works with provinces and municipalities to agree on a property tax and utilities abatement strategy for April, May and June; and

  5. That the federal government announces the framework of a rent abatement strategy prior to April 1 in order to avoid significant confusion and mass lock-outs of businesses on that date.

A QUIET INTERSECTION AT QUEEN ST AND JOHN ST, TORONTO. PHOTO: CRAIG PATTERSON

According to the organization, small businesses generate more than a third of Canada’s GDP.

“Across the country, many of our small businesses have closed their doors, and many more will follow in the coming months. We’ve seen dramatic drops in sales and disruptions to our supply chains as a result of the measures we’re all taking to stop COVID-19,” says the group on its website.

“We’ve paused our businesses to protect our communities’ health. Government needs to help us pause our expenses so we’re still in business when it’s time to restart the economy. The answer isn’t more access to debt. We shouldn’t have to mortgage our future to pay for our collective response to this virus. We’re willing to pay our share, but we need banks, landlords and the government to equitably share the burden. We’ll lose thousands of small businesses if measures aren’t taken.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More From The Author

Canadian Retail Sales Growth for 2023 Expected to be ‘Modest’ Following Record-Breaking Numbers Two Years Prior [Report/Interview]

Retailers face a few hurdles this year as consumers pull back amid inflation, while leasing activity remains strong according to a new Colliers report.

Calgary Co-op Owned ‘Community Natural Foods’ Expanding to Edmonton’s Old Strathcona with 1st Store [Interview]

The retailer has three Calgary locations and its new 10,000+ square foot Edmonton location will mark the beginning of a store expansion in that market.

Jewellery Designer Alan Anderson Opens Unique Atelier Retail Space in Historic Toronto Mansion [Interview/Photos]

The dramatic and unique space will also be utilized for events as Anderson works to help other local designers showcase their wares.

Federal Budget Does Little to Help Canadians with Food Affordability [Op-Ed]

Sylvain Charlebois says that the Federal budget falls short on helping Canadians desperate to afford food at the grocery store.

2023 Federal Budget Misses the Mark for Retailers in Canada [Interviews]

Retail Insider interviewed several association heads who say that the newly released budget isn't sufficient enough to help retailers, and consumers will be negatively impacted as a result.

Canadian Consumers Cautious as Foot Traffic Returns and Preferences Change [Study/Interview]

The next few months could be rocky for some retailers as consumers take a pause following inflation and other pressures.

Goodwill Planning to Open Dozens of Stores in Canada as Thrifting Grows [Interview]

The resale retailer is seeing significant opportunities for growth with large stores as consumers embrace sustainability as well as a value price-point.

Lifestyle Brand ‘La Canadienne’ Opens 4th Store with Plans for Expansion [Interviews/Photos]

Canadian retailer La Canadienne, in business for 35 years, recently opened its fourth store in the country as it strategically looks to expand its brand.

Bloor Street Update: What’s on the Way for Toronto’s Luxury Run? [Podcast]

Craig and Lee talk about retail on Bloor Street in downtown Toronto, including the new temporary Fabricland store where H&M was, as well as new big brands and luxury brands that will be opening this year nearby.

Record Price Obtained for Yorkville Retail Building Containing Isaia Flagship Store

The historic building’s record-breaking price per square foot indicates confidence in Bloor-Yorkville retail, according to CBRE’s Arlin Markowitz.

The Hidden Cost of Carbon Taxes and How it Will Impact Food Retail in Canada [Op-Ed]

Sylvain Charlebois says that the Carbon Tax will make it more difficult for many companies to keep food affordable, impacting many families even more who are already suffering.

Women Of Color Retail Alliance Building A Network Of Support And Change [Interview]

Kimberly Lee Minor and Liza Amlani discuss the organization and the challenges women of colour still face in the retail sector.

Airports in Canada Missing the Mark, Need to Bring in More Localized Retailers and Offerings [Expert Interview]

Larry Leung says that the ‘arrival side’ in particular is an opportunity for airports to attract waiting consumers while promoting tourism in the city and offering experiences.

Broader Shift in Consumer Spending in Canada Towards Experiential Activities [Report/Expert Interview]

Steve Sadove of Mastercard goes over recent numbers showing a cautious Canadian consumer around retail, while foodservice businesses are "killing it" in terms of growth post-pandemic.

Fabricland to Replace H&M on Toronto’s Bloor Street Luxury Run

Fabricland will be located across from Holt Renfrew on the most prestigious retail street in Canada.

Zellers Could be Successful in Canada After Thursday Launch at Hudson’s Bay [Interview]

Madeleine Nicholls of Colliers says that the timing is right for a value concept as consumers seek nostalgia and value at a challenging time.

Innovative Lifestyle Retailer Benkei Hime Plans National Store Expansion After 2022 Launch [Interviews]

The bubble tea and fashion/youth culture retail concept opened its first Canadian locations last year, and broker Jeff Berkowitz says many more are on the way.

Eyewear Brand Warby Parker Adding More Stores to its Canadian Roster [Interview]

A company representative said in an interview that Warby Parker is bullish on its brick-and-mortar expansion after opening its first store in Canada in 2016.

Immersive Aquarium to Open as Part of Montreal’s Royalmount Project [Interviews]

The exciting mixed-use Royalmount will also feature a roster of foodservice offerings and retailers, including a mix of luxury brand stores such as Gucci and Louis Vuitton.

Mark Cohen, Former Sears Canada CEO, Discusses Why Nordstrom Failed in Canada [Video Interview]

Craig sits down with Mark Cohen, Director of Retail Studies at Columbia Business School and CEO of Sears Canada between 2001 and 2004. They discuss why Nordstrom failed in Canada, what might happen with the spaces as well as a revelation that HBC attempted to get Sears to acquire it twice during Cohen's tenure.

RECENT RETAIL INSIDER VIDEOS

Advertisment

Subscribe to the Newsletter

RECENT articles

Canadian Retail Sales Growth for 2023 Expected to be ‘Modest’ Following Record-Breaking Numbers Two Years Prior [Report/Interview]

Retailers face a few hurdles this year as consumers pull back amid inflation, while leasing activity remains strong according to a new Colliers report.

Calgary Co-op Owned ‘Community Natural Foods’ Expanding to Edmonton’s Old Strathcona with 1st Store [Interview]

The retailer has three Calgary locations and its new 10,000+ square foot Edmonton location will mark the beginning of a store expansion in that market.

Jewellery Designer Alan Anderson Opens Unique Atelier Retail Space in Historic Toronto Mansion [Interview/Photos]

The dramatic and unique space will also be utilized for events as Anderson works to help other local designers showcase their wares.

Federal Budget Does Little to Help Canadians with Food Affordability [Op-Ed]

Sylvain Charlebois says that the Federal budget falls short on helping Canadians desperate to afford food at the grocery store.

2023 Federal Budget Misses the Mark for Retailers in Canada [Interviews]

Retail Insider interviewed several association heads who say that the newly released budget isn't sufficient enough to help retailers, and consumers will be negatively impacted as a result.

Canadian Consumers Cautious as Foot Traffic Returns and Preferences Change [Study/Interview]

The next few months could be rocky for some retailers as consumers take a pause following inflation and other pressures.

Goodwill Planning to Open Dozens of Stores in Canada as Thrifting Grows [Interview]

The resale retailer is seeing significant opportunities for growth with large stores as consumers embrace sustainability as well as a value price-point.

Lifestyle Brand ‘La Canadienne’ Opens 4th Store with Plans for Expansion [Interviews/Photos]

Canadian retailer La Canadienne, in business for 35 years, recently opened its fourth store in the country as it strategically looks to expand its brand.

Bloor Street Update: What’s on the Way for Toronto’s Luxury Run? [Podcast]

Craig and Lee talk about retail on Bloor Street in downtown Toronto, including the new temporary Fabricland store where H&M was, as well as new big brands and luxury brands that will be opening this year nearby.

Record Price Obtained for Yorkville Retail Building Containing Isaia Flagship Store

The historic building’s record-breaking price per square foot indicates confidence in Bloor-Yorkville retail, according to CBRE’s Arlin Markowitz.

The Hidden Cost of Carbon Taxes and How it Will Impact Food Retail in Canada [Op-Ed]

Sylvain Charlebois says that the Carbon Tax will make it more difficult for many companies to keep food affordable, impacting many families even more who are already suffering.

Women Of Color Retail Alliance Building A Network Of Support And Change [Interview]

Kimberly Lee Minor and Liza Amlani discuss the organization and the challenges women of colour still face in the retail sector.

Airports in Canada Missing the Mark, Need to Bring in More Localized Retailers and Offerings [Expert Interview]

Larry Leung says that the ‘arrival side’ in particular is an opportunity for airports to attract waiting consumers while promoting tourism in the city and offering experiences.

Broader Shift in Consumer Spending in Canada Towards Experiential Activities [Report/Expert Interview]

Steve Sadove of Mastercard goes over recent numbers showing a cautious Canadian consumer around retail, while foodservice businesses are "killing it" in terms of growth post-pandemic.

Fabricland to Replace H&M on Toronto’s Bloor Street Luxury Run

Fabricland will be located across from Holt Renfrew on the most prestigious retail street in Canada.

Zellers Could be Successful in Canada After Thursday Launch at Hudson’s Bay [Interview]

Madeleine Nicholls of Colliers says that the timing is right for a value concept as consumers seek nostalgia and value at a challenging time.

Innovative Lifestyle Retailer Benkei Hime Plans National Store Expansion After 2022 Launch [Interviews]

The bubble tea and fashion/youth culture retail concept opened its first Canadian locations last year, and broker Jeff Berkowitz says many more are on the way.

Eyewear Brand Warby Parker Adding More Stores to its Canadian Roster [Interview]

A company representative said in an interview that Warby Parker is bullish on its brick-and-mortar expansion after opening its first store in Canada in 2016.

Immersive Aquarium to Open as Part of Montreal’s Royalmount Project [Interviews]

The exciting mixed-use Royalmount will also feature a roster of foodservice offerings and retailers, including a mix of luxury brand stores such as Gucci and Louis Vuitton.

Mark Cohen, Former Sears Canada CEO, Discusses Why Nordstrom Failed in Canada [Video Interview]

Craig sits down with Mark Cohen, Director of Retail Studies at Columbia Business School and CEO of Sears Canada between 2001 and 2004. They discuss why Nordstrom failed in Canada, what might happen with the spaces as well as a revelation that HBC attempted to get Sears to acquire it twice during Cohen's tenure.