A Toronto survey found that 61% of local businesses will not survive over the next three months due to the economic impacts of the COVID-19 pandemic.
On Wednesday, the Broadview-Danforth BIA released their survey, which was based on responses from 561 small business tenants and 137 landlords across the city.
It also found that 76% of businesses would close for good within five months.
According to the survey, 50% of businesses could not make all of April’s rent and 72% feel they will not make all of May’s rent. Of the businesses surveyed, 45% are in the service industry, 34% are in the retail business, and 21% are restaurants and bars.
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For the 137 landlords surveyed, 74% did not receive all of April’s rent and 82% do not feel they will receive all of May’s rent. The majority of the landlords said they have owned their building for 10 or more years.
When asked about the financial aid that is being offered by the federal government 78% said the wage subsidy does not help.
Only 18% indicated that the $40,000 loan helps, but 32% said it would offer better assistance if there were “no strings attached.”
The loan is part of the Canada Emergency Business Account (CEBA) that was launched in March, offering $40,000 for small and medium-sized businesses.
On April 16, Prime Minister Justin Trudeau said CEBA will be expanded so that businesses that had a total payroll in 2019 of $20,000 to $1.5 million will be eligible. Before the requirements were $50,000 to $1 million in total payroll.
The majority of landlords, around 72%, indicated rent relief would be the best assistance option.
Last week, Trudeau unveiled the Canada Emergency Commercial Rent Assistance program, which is meant to help small businesses and commercial property holders pay rent for April, May, and June.
Details on the program have not been made available yet.