More help needed for small businesses during COVID restrictions, says CFIB

Small businesses in the province need more than a loan to help them stay in business during the COVIDpandemic, according to the director of provincial affairs in New Brunswick for theCanadian Federation of Independent Business.

Louis-Philippe Gauthier said the provincial government's response to providing the support small businesses need to surviveis essentially inadequate.

And, without some immediate help from the provincial government in grants or forgivable loans,Gauthiersaid more small businesses will have no choice but to close their doors.

"We're hoping the provincial governmentwill change its approach at this time and at least try to capture and support the small businesses that are falling through the cracks."

Gauthier said the province should follow Quebec and Ontario's example. Those provinces provided support to businesses that had to close based on further restrictions.

He said based on recent data, 11 per cent of their members are considering shutting down their business or declaring bankruptcy. About 50 per cent are unsure they will survive a closure during a second wave.

"It's not an easy time for a lot of businesses, those who are still impacted by the health measures and/or by reduced demand from consumers."

Gauthier said businesses that had to close during the orange phase inZone 1, the Moncton region and Zone 5, the Campbellton region, because of health restrictions were hit hard.

"In Moncton, the businesses here were fortunate because closurewas over a shorter period.But for the businesses in Zone 5, the reality is no revenue coming in."

This is the third closure for somebusinesses in Zone 5, who went through the first lockdown, a second n June during a COVID-19 outbreak and now this second outbreak. Gauthier said many businesses were worried about what would happen ifadditional restrictions were put on them.

"And that's a reality that unfortunately materialized."

Gauthiersaid CFIB is asking the province toprovideadditional support for the businesses that are affected whenit puts restrictions in place

Right now the governmentonly provides support to small businesses through loans, but CFIB is calling on the government to allow forgivableloans or grants.

Gauthier said many businesses have incurred a large amount of debt, and can't afford to take on more.

"Eventually you'regoing to hit a speed bump as a business so helping them in a grant format would be the preferred method at this point."

Gauthier said otherwise, the government is taking away the ability of that person to gain a livelihood.

"You know, you're basically expropriating these business owners and not allowing them to generate revenue and then taking all the risk.

So at this point, from our perspective, it's very evident that when government imposes restrictions, it has a responsibility."