North America– Wave of Business Closures to Hit Canada Despite Federal Response

Tens of thousands of Canadian businesses will be forced to shut down permanently because they won’t be able to weather the effects of social distancing measures, according to the head of a lobby group.

The government of Prime Minister Justin Trudeau took too long to roll out emergency support programs and as a result, many companies won’t survive, says Dan Kelly, president at the Canadian Federation of Independent Business. 

A survey of CFIB members shows 80% of small and medium firms are closed or operating at reduced capacity because of the pandemic, meaning only 20% are fully operational.

In addition, almost 7 million Canadians, or about a third of the labor force, have applied for the Canada Emergency Response Benefit, which provides those who have lost work from Covid-19 with C$2,000 ($1,409) a month.

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bloomberg tax
april 22, 2020
by shelly hagan