Survey Shows Small Businesses Need More Help - Moose Jaw Not Immune
With the arrival of the Covid - 19 pandemic to Saskatchewan numerous small businesses are suffering and according to a Canadian Federation of Independent (CFIB) survey many are saying their businesses without further government help are likely to be victims never to re-open again.
In a survey conducted this past weekend the CFIB has reported of those members who responded that 25 per cent say they cannot meet their April rent or mortgage commitments due to the effects of Covid - 19.
The hardest hit sector in the CFIB national survey is the hospitality industry sector (restaurants, bars and night clubs) with 44 per cent reporting they are unable to meet their April lease or mortgage commitments. The hospitality sector has been hit hard as customers stayed away in droves or governments ordered them to first restrict customer access and later closed them either partially with pick up and delivery only or closed them completely.
The Scotties was held in February as a way to help out the local economy especially the hotel and Downtown hospitality sector now devestated by the effects of the Covid - 19 pandemic - MJ Indpendent file photo
Other sectors hard hit include arts, recreation & information (40 per cent) and personal services (32 per cent).
It should be noted hospitality and tourism are two main industries in Moose Jaw and have been heavily marketed and promoted through such events as this past February’s Scotty’s Tournament of Hearts hosted at Mosaic Place.
Moose Jaw’s hospitality sector is responding by featuring their take-out and delivery services as well as others such as R and S Family Restaurant just east of the city has gone nostalgic with people ordering food and then eating in their cars as a throw-back to the popular drive-in restaurant of the 1950’s - 1970’s.
A sign on a Downtown hospitality related business annoucing their temporary closure due to Covid - 19 - MJ Independent file photo
The CFIB also reported the number of businesses nation-wide who are fully open dropped from one in three (33 per cent) to one in five (20 per cent) nation-wide.
“Last week brought good news for many with respect to an increased wage subsidy but the next big bill looming for many is commercial rent,” Laura Jones, CFIB’s executive vice-president said in a statement. “Business owners—both leasers and landlords—are worried as everyone has bills to pay.”
CFIB Saskatchewan is calling on the provincial government to institute eviction protection for commercial renters. They point to a eviction protection announced by New Brunswick on paying commercial rents as an example that Saskatchewan and other jurisdictions shoud follow.
The CFIB also has some advice for business owners including encouraging landlords and tenants to continue to communicate and work out arrangements, putting rental deferral agreements in writing, and keeping good records.
Last week the province announced a moritorium on residential evictions until the Covid - 19 pandemic is passed although tenants will be responsible for back rent after the moritorium.
A voulntary payment deferral by the banks on residential mortgages has had mixed results with some home buyers reporting they do not meet the bank’s qualifications.
CFIB Saskatchewan is also asking the Province to encourage municipalities to defer commercial property tax payments by at least three months.
At their March 23rd meeting Council was told there is a possibility of defering the due date for taxes but that such a move would be in the future once the impact of the Covid - 19 is more apparent.
“We would suggest to Council we continue on in this process. It is a longer term process we will not be sending out property tax notices until after the Victoria Day weekend that is two months. Again we suggest we re-assess it as we go along. We can determine at various times in the process if we want to extend the tax payment process,” Acker told Council on March 23rd.
The March 23rd meeting of Council was closed to the general public as social spacing was maintained in the chamber - MJ Indpendent file photo
The CFIB is also calling for the federal government to make $10,000 of a $40,000 loan program free to cover businesses fixed costs such as rent. They are also calling on the province to provide additional emergency monthly assistance of $5,000 monthly for three months to businesses who are at imminent risk of permantent closure.
Impact On Moose Jaw
Three Moose Jaw small businesses, who spoke to MJ Independent off the record on the weekend and on Monday, said they are struggling to make next month's rent.
For the past 18 months it has been a struggle for the businesses and the Covid - 19 pandemic has hit them in two major blows.
The first blow came when the Downtown started to become deserted and the second blow was when the Province ordered them to close their shops to face to face customers.
All three businesses have each been around for over 10 years and report they are now just struggling to adapt in uncertain times and not have to close their doors forever.
Moose Jaw Chamber’s Response
The Moose Jaw and District Chamber of Commerce has been highly active in supporting its member businesses in what are described as “rapidly changing and very uncertain times.”
The Chamber has been answering questions about the assistance programs all level of government are revealing with new details almost daily.
In an effort to help out local small business the Moose Jaw and District Chamber of Commerce has been highly active in developing solutions to help local business survive and adapt during the Covid - 19 pandemic by doing such things as launcing the new online page called "BringMeBasics".
“BringMeBasics” is a web portal where local business can connect with consumers can purchase goods and services from local businesses online. The site is designed to allow buyers to access and make purchases in a safe way from local businesses while maintaining proper Covid - 19 precautions. The service is free for businesses.
Also on Monday the Chamber held a 40 minute conference call think tank and invited all Chamber members to join the discussion on how Covid - 19 was effecting their business, what resources they were looking for or wanting to learn more about, and potential ways for all members to support the local business community.