Small business owners are asking the federal finance minister to consider additional help to pay off their pandemic-related debts as the sixth wave of COVID-19 drives another drop in sales.
Minister Chrystia Freeland has heard this cry for help several times in recent days during a post-budget tour across the country.
His response was that there was no need for emergency measures to end the crisis, economic development and the government needed to tighten the fiscal belt.
Dan Kelly, President of the Canadian Federation of Independent Business (CFIB), asserts that 40% of its members say they have returned to normal sales.
More are worried about the impact on income and their ability to repay loans when there is no traffic, despite the end of some health restrictions in the provinces, he added.
Its members shared these concerns with Ms. Freeland at a budget webinar. Mr Kelly said he left the meeting believing the Finance Minister had paid attention to their concerns.
The termination of emergency benefits
The budget does not plan to extend the emergency benefit programs, which will end May 7, but Freeland told webinar attendees that he heard them when asked about debt relief, which eventually prompted continue discussions.
The members of CFIB averaged $ 160,000 in pandemic-related debt, including approximately $ 60,000 from a federal loan program.
The government has set December 2023 as the last day to repay these interest-free loans and to benefit from the partial cancellation. However, many small business owners believe they will need an extension until 2024 to complete the payment.
Yes, the streets are busier again, yes, key economic indicators are positive, but so many small businesses – especially in the retail, hospitality, service and arts and entertainment sectors – are hanging on a thread. and now more debtsaid Mr. Kelly in an interview.
” There is a huge amount of new spending in almost every budget line [fédéral]and yet, for any kind of business support, that is pretty thin. “
He argues that about three -quarters of the members CFIB they said they did not find the federal budget beneficial, even though it did not include any debt relaxation measures and did not suggest any reduction in credit card fees for SMEs.
At this last point, the budget promises to resume the consultations promised in last year’s budget, which are based on the Liberal election promise in 2019.
I would love to accommodate anything you’d like to see the fed do, but I admit I wouldn’t and never will.said Minister Freeland to CFIB members.
What I will tell you is that I have always been careful in developing the budget. When launching policies, I pay attention to what they mean for small businesses.
One positive element Kelly mentioned in the budget was the promise to raise the limit for small businesses to benefit from the lower tax rate, which he should remove barriers to small business growth. .
Source: Radio-Canada