Friday March 13, 2020 ~ VICTORIA
by Mary Brooke ~ West Shore Voice News
BC Premier John Horgan says he is looking out for small business.
Today in a media conference following his phone conference with the Prime Minister and First Ministers, Premier Horgan — in responding to a question from West Shore Voice News — says that he hopes to see not only ‘best practices’ in business-related decision making by the federal government (and governments in other jurisdictions), including working “inside and outside the toolbox”.
He commended the federal government for the work of Chief Public Health Officer Dr Theresa Tam for thinking outside the box ‘right off the bat’ regarding expanding the availability of COVID-19 test kits. Hopefully that admiration for ‘outside the box’ thinking can be encouraged and happen for small business.
The Premier mentioned today that BC might consider property tax breaks in some manner for small business.
He noted that BC’s Budget 2020 as delivered just last month by Finance Minister Carole James was before the now-expected drop in export activity and GDP for the rest of this year.
As announced earlier today by federal Finance Minister Bill Morneau, the federal government’s $10 billion credit support to businesses is being directed through the Business Development Bank of Canada and Export Development Canada.
Morneau said this sort of credit facility was an effective tool during the 2008 financial crisis and will be again now. Most of the money will be directed to small- and medium-sized enterprises, Morneau said. There was no indication of how truly small businesses will get direct assistance, as the Business Development Bank usually requires business revenues in the realm of at least $70,000 per year.
The BDB website says up to $100,000 can be obtained online in as little 48 hours from time of approval. Working capital loans will enable small businesses to get extra funds to bridge cash flow gaps and support everyday operations; apparently there will be flexible repayment terms to protect your cash flow and limited personal risk.
In the now dramatic economic crisis brought on by the COVID-19 pandemic — a scenario that is likely to worsen — there no time for trickle-down from large corporations.
Small businesses will need cash injections to cover for immediate loss of revenues and for having to pay for employees or contracts and services regardless of reduced or non-existent spending by customers or clients.
Economic impact will be seen at all levels of the economy. Pretty much everyone will cut back or stop spending under the duress of this sudden economic crisis, with a domino effect on everyone but small business in particular (which usually operates without the same reserves as large corporations).
As well, as one political observer has put it: “This could be an opportunity for many small biz operators to refinance and get out from under usurious loans and credit card balances.”