CFIB estimates Canada’s Small Businesses Now Have $135 Billion in Debt Due to COVID-19

As the COVID-19 pandemic drags on, Canadian small businesses have racked up a collective $135 billion in debt because of the health emergency, according to estimates by the Canadian Federation of Independent Business (CFIB).

The group, which lobbies for small entrepreneurs, says seven in 10 small business owners have had to borrow funds due to the pandemic, with the average debt load now nearly $170,000.

While many ventures experienced some reprieve during the summer, with sales picking up during the warmer months, Canada’s small business debt has since seen “a significant increase” since the CFIB’s previous estimate of $117 billion in July 2020.

And while just over half of businesses are now fully open, only 25 percent report normal sales levels, a trend the report calls “concerning.”

Small businesses in the hospitality, arts and recreation and social services sectors have been more likely to have taken on debt, as companies in these industries are usually public-facing, have a limited ability to accommodate for remote work and are unlikely to be considered essential to the CFIB report notes.

Overall, just over three-quarters of small businesses that have taken on debt expect it will take them over a year to repay it, with 11 percent of this group saying they’re concerned that may not be able to repay at all.

This content is also available in: Tiếng Việt

#seesomething, saysomething

Culture Magazin magazine always wants to listen and receive contributions from readers.
In case you submit articles about your ideas, interesting social events or hot news that you would like to share with us, email us at info@culturerus.com or inbox us at the FB page – https://www.facebook.com/culturemagazin.
Try our test reporter once. Quality articles will be selected and posted on Culturemagazin’s website and official social networking sites!
#seesomething, saysomething

Discover

Bài Liên Quan

Health Minister announces mandatory self-isolation for Canadian Travellers returning home

As of early Wednesday morning, Canadian Health Minister Patty Hajdu told the Senate in Ottawa that all travellers, with an exception of...

Da Lat – Love At First Sight

Known to create a bank of beautiful memories, especially for Saigonese, Da Lat offers visitors multidimensional points of view. The area’s tourism...

Toronto, Peel, and Windsor-Essex Stays in Stage 2 As Remaining Regions Approved for Stage 3 Reopening

In the latest updates from the Premier Doug Ford and the Ontario Government, Toronto, Peel Region (which includes Brampton, Mississauga, and Caledon),...

A look at how provinces plan to emerge from COVID-19 shutdown

Reported by: The Canadian Press Provinces have been releasing plans for easing restrictions that were put in place to...

Proposed program to give Canadian permanent residency to asylum seekers working in health care

The federal government is working on a special program that would grant Canadian permanent residency to asylum seekers who have worked in...

Immigration Lottery Winners Can Formally Apply to Sponsor Parents, Grandparents

Immigrants hoping to bring their parents or grandparents to permanently live in Canada will soon find out if they are lucky enough...

Oil drops 5% on China-U.S. tensions, demand doubts

LONDON (Reuters) - Oil fell 5% on Friday to around $34 a barrel as tensions rose between the United States and China,...

This content is also available in: Tiếng Việt