FIle photo: The Canadian Press
Nearly 8,000 B.C. businesses have let their concerns about COVID-19 be heard, and the news is as grim as one might expect.
The BC Chamber of Commerce conducted a survey of provincial businesses at BCMindReader.com over the last five days, and a quarter of the respondents said they will have to lay off their entire staff.
In addition, nearly 75% of those who answered the survey expect their revenues during the pandemic will drop by 50% or more, with nearly a quarter saying their revenues will dry up entirely, likely because they have had to close.
“I am the only full-time employee, and I may need to close my business, potentially go bankrupt and lose $100,000 investment,” one respondent wrote. “I’ve paid into EI my entire life, except for the last year since starting my business. What services are available to me during this incredibly challenging time?”
Added another: “I need cash in hand and decreased bills soon. Help me and my business, so I can help my staff by keeping them employed.”
Prime Minister Justin Trudeau’s stimulus package, which he revealed on Wednesday, covered some of the business community’s concerns. That includes providing eligible small businesses a 10% wage subsidy for the next 90 days up to a maximum of $1,375 per employee and $25,000 per employer, and access to cash via loans from banks and other financial institutions, including the Business Development Bank of Canada and Export Development Canada.
“Public health must be the primary concern during the early days of the pandemic,” BC Chamber of Commerce CEO Val Litwin said. “We commend the federal and provincial governments for prioritizing the health and safety of its citizens above all else.
“We have also been reassured that government is strategically and thoughtfully looking at ways to mitigate impacts to businesses of all sizes and are working tirelessly to soften the economic impacts to British Columbians. Businesses in BC are saying that a combination of tax cuts, flexibility around tax remittances and enhanced credit access will help them weather this unprecedented storm in the short term.”
The BC chamber is also pleased that the tax filing deadline has been extended to June 1 and that the tax payment period, for amounts due after today and before September, has been delayed until after Aug. 31.
The BC chamber has used the survey results to ask governments to introduce the following:
1. Flexibility for tax remittance
• extend the April 30 tax deadline for those who owe to take pressure off the system and provide relief;
• provide a six- to 12-month holiday on paying the employers’ health tax to put $950 million to $1.9 billion back in the hands of business so they can stay open and keep workers employed;
• remove the PST for six months on every transaction or, at the very least, for select purchases.
2. Delayed property tax payment
• work with municipalities to allow business to defer property tax payments to free up revenue.
3. Encourage financial institutions to provide zero interest loans, lines of credit and deferred payment terms
• work with banks, credit unions and other lenders such as Community Futures to offer zero interest business loans—with deferred payment terms—backed by government.
4. Enhanced EI access and wage replacement options
5. Provide funding for business to work remotely
• create a provincial fund to help businesses operate remotely and in turn, avoid staffing reductions or layoffs. This is also a future-oriented opportunity; as we recover from COVID-19, some will continue working remotely, which will reduce congestion and help with greenhouse gas reduction targets going forward.
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