Only half of businesses surveyed just before Easter by the BC Chamber of Commerce are expecting to reopen after the COVID-19-related restrictions are lifted.
Like businesses across the province, Richmond businesses also continue to struggle every week the shutdown continues, explained Matt Pitcairn, Richmond Chamber of Commerce president and CEO.
“Revenues continue to decline or stop entirely, while operating expenses remain,” he added.
And May 1 is fast approaching when businesses will need to pay the rent, and Pitcairn is concerned many businesses won’t survive past that.
The federal government recently announced a rent relief program – the Canada Emergency Commercial Rent Assistance – but companies are waiting for details on timing and eligibility, Pitcairn said.
“Businesses are doing everything possible to stay afloat, but an increasing number are reaching the end of the line,” Pitcairn said. “The supports being announced by government are encouraging to see but our members need this financial aid as quickly as possible. Many literally cannot afford to wait.”
In the chamber survey, eight per cent of respondents reported they won’t be reopening, while 38 per cent said they were unsure at the time of the survey.
Fifty-four per cent of the businesses reported their revenues have decreased by 75 per cent or more while two-thirds have seen revenues drop by 50 per cent or more.
Businesses surveyed were generally positive about government measures for employees and ensuring supply chains remain open, but they were concerned about the speed and scope of programs that support cash flow.
The BC Chamber survey found half of the businesses believe federal government programs will be helpful once in place, but 33 per cent said they aren’t helpful because their business doesn’t qualify for the programs.
Similarly, one-third of businesses don’t find the provincial programs helpful, for the same reasons as federal programs.
Businesses with under five employees are least likely (49 per cent) to find federal programs helpful, primarily because they do not qualify.
Only one-third of businesses are confident they will qualify for the 75-per-cent wage subsidy program, while 21 per cent are unsure.
Val Litwin, president and CEO of the BC Chamber of Commerce, said more support is needed from government.
“How government listens and responds to the business community in the coming weeks will be the game-changer in terms of economic recovery,” Litwin added.
An increasing number of businesses are at the point of no return, said Bridgette Anderson, president and CEO of the Greater Vancouver Board of Trade, adding, for many businesses, there is a “small window to support the survival and eventual recovery.”
