The COVID-19 pandemic is presenting unprecedented challenges for Rocky View County’s business community.
As residents keep mostly to their homes and practice social distancing, local restaurants, bars and shops are experiencing considerable drops in revenue.
“I know they’ve announced government assistance, but it’s still tough,” said Tony Nicastro, owner of Fireside Eatery and PZA Parlour in Cochrane. “The last thing you want to do is lay off half of your staff, and then they have to worry about how to get support. That’s been the biggest challenge, as well as figuring out how we’re going to maintain the restaurant, moving forward.
“But we’re fortunate enough to have a great community here, and the support of [our landlord] as well. They’ve been helping quite a bit and have been really responsive in letting us know that anything they can do to help is their priority.”
As of March 18, Nicastro said he has laid off half of his employees, and said he prioritized who was kept based on their living situation.
“Anyone who was part-time and staying at home with their parents was obviously lower on the priority scale, and then single mothers ranked higher,” he said. “We’re just trying to fill our hours, even though we don’t necessarily need it. We’re just trying to support them where we can.”
Nicastro’s experience has been far from unique. The Canadian Federation of Independent Business (CFIB) published a survey March 17, indicating half of Canada’s small- to mid-size enterprises (SMEs) have seen a drop in sales because of COVID-19 – four in 10 respondents reported sales decreases greater than 25 per cent.
“The early economic impacts of coronavirus on Canada’s SMEs have been massive,” CFIB president Dan Kelly said in a statement. “Even more alarming is our finding that a full quarter of small firms would not be able to survive for more than a month with a drop in business income of more than 50 per cent.”
The survey found, the average cost to SMEs affected by the economic impacts of the virus was already about $66,000. Forty-three per cent of respondents reported they have reduced hours for staff, 20 per cent have started temporary layoffs, 38 per cent are experiencing supply chain issues and 42 per cent said they will have zero sales if face-to-face contact is not permitted.
“CFIB is advising all small-business owners to listen and respond to the advice of public health officials in order to keep their employees and customers safe,” Kelly said. “However, we must recognize that calls for self-isolation have massive economic consequences for many Canadian small businesses, especially as close to two-thirds of small firms would not be able to quickly shift more than 10 per cent of sales to online or telephone options.”
The Cochrane and District Chamber of Commerce is also facing financial struggles as a result of the pandemic. President David Smith said the chamber had to cancel its annual trade show, which was slated to take place the first week of May at the Spray Lake Sawmills Family Sports Centre. The event attracts thousands of visitors annually.
"It’s a very big event and it uses up the curling rink and one of the ice rinks at the Spray Lake rec centre," he said. "I think last year, we had probably 4,000 people go through. It’s a very well attended event and we’re very disappointed it can’t run this year. It’s our biggest fundraiser and we base our budget on it."
As the pandemic evolves, Smith said CDCC is focused on relaying information to its members about available financial assistance and resources.
“People are worried about paying their rent, lease or mortgage payments," he said. "It’s just been a really, really tough time for small businesses. The extent what we’ve heard from our prime minister, is that this is going to be a three-month-long crisis, at the best, so people are trying to wrap their heads around the fact we’re in it for the long term. We’re trying to help people plan for that and deal with that. It’s a really tough time, trying to help people keep their spirits up.”
On March 18, the federal government announced an aid package worth $82 billion to help Canadians through the crisis. The stimulus package will include $27 billion in direct support, while the remaining $55 billion will help businesses through tax deferrals.
The same day, the province announced its own stimulus package, including $50 million in financial relief for those not able to work due to self-isolation, and a delay until August for payment of corporate income tax.
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Scott Strasser, AirdrieToday.com
Follow me on Twitter @scottstrasser19
