What COVID-19 Could Mean for Small Businesses

Edited by Admin

The COVID-19 pandemic has impacted small businesses forcing some to temporarily close down in efforts to flatten the curve. Even businesses that are operating remotely face logistical challenges and supply chain disruptions. In order to alleviate pressure due to short term liquidity constraints, the Canadian government stepped in with a fiscal stimulus package of $82 billion which will include wage subsidies, tax deferrals and $10 billion in loans to small businesses. In addition, the Business Development Bank of Canada (BDC) along with the government has formed the Business Credit Availability Program (BCAP) which aims to provide working capital loans of up to $2 million, payment deferrals of up to 6 months with no added interest, and lower rates. Once the curve starts flattening in Canada, we expect to see a rise in M&A and capital raises as investors and corporate buyers start deploying capital and leverage lower interest rates. To discuss advisory services get in touch with our team here.