Small business owners are now discovering that they unknowingly provided a personal guarantee on the loan, meaning even if the business closes its doors the owner is responsible personally for the debt.
A shift in downtown dynamics since the pandemic, including less foot traffic and increased crime and drug use, are impacting retailers with great concern.
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.
Corinne Pohlmann of CFIB discusses the upcoming transition for small businesses in Canada with more than 3/4 of owners planning to exit over the next decade.
The Chief Economist at CFIB talks about what's happening in the overall Canadian economy, sales in the retail sector, the level of job vacancies in the country and the debt small businesses have taken on during the pandemic.
The CFIB says businesses have a long way to go for recovery, following challenges relating to the pandemic including debt which could sink some retailers.
The CFIB talks about the current level of stress and anxiety in the industry, the possibility of lockdowns and restrictions, the optimism and confidence levels of owners, the impact of rising costs, the current labour shortage, the lack of government support programs and the recent Rogers network outage.
Dan Kelly, President/CEO of the Canadian Federation of Independent Business, discusses the latest federal budget and its impact on small businesses in Canada.
Not enough is being done to support businesses struggling because of the pandemic and new spending will result in even more of a budget shortfall say experts.
Recovery has not truly begun for most Ontario businesses according to CFIB with other experts and industry players saying that the move will irreparably harm many more businesses.
Businesses already have debt and still seeing lower than usual revenue, and more shutdowns could be the final blow for thousands of more retailers already struggling.
While retail stores in the GTA will be permitted to operate at lower capacities on February 22, restaurants, personal care, and gyms will remain shut with no end in sight.