Managing Your Business Through COVID-19 Part 3

Finding stability in these changing times can be difficult. As mentioned in our part 1 and part 2 series it’s important to find time a balance between your business and self care. As we approach May, there has been a lot of change and various supports announced by the Government of Canada. Updated details on the Canada Emergency Commercial Rent Assistance (CECRA) can be found here.

Key details:

  • The Program will provide forgivable loans to qualifying commercial property owners. This is to cover 50% of three-monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, and June.
  • The loans will be forgiven if the mortgaged property owner agrees to reduce the eligible small business tenants’ rent by at least 75% for the three corresponding months under a rent forgiveness agreement, which will include a term not to evict the tenant while the agreement is in place. The small business tenant would cover the remainder, up to 25% of the rent.
  • Qualifying small businesses are those paying less than $50,000 per month in rent and who have temporarily ceased operations or have experienced at least a 70% drop in pre-COVID-19 revenues. This support will also be available to non-profit and charitable organizations.

Contingency Planning

As entrepreneurs it’s always stimulating to focus on potential opportunities and strategies to improve your business, reach new markets or develop new products/services. It can be easy to put contingency planning to the side as we face COVID-19 and the impacts to our businesses, now is the time to focus on the realities of these major changes. Whether it’s changes in your personal health, supply-chain issues, or market shift, it’s important to ask yourself and your team what can be done to mitigate future risks in these areas. It’s crucial that we use this time to find unique opportunities to manage these potentially challenging situations in front of us.

Think Local Going Forward 

During the past week there have been conversations around re-opening the economy. Provinces have started laying out plans for a measured approach to re-opening businesses, with some provinces starting next week.

Supporting local businesses is now more vital than ever for our economy. These small to medium sized businesses are the backbone to our communities and they are gearing up to face the new market realities post pandemic.  When we support local, it means giving back to our community, and the people who call it home. Many of these businesses and their families have been shaken by COVID-19. Shopping or eating local means keeping unique and home-grown products and services in our region and giving local jobs to community members.

As a secondary way to support– you can follow the small businesses on social media, sharing their updates and promotions, and be a vocal supporter for them in our region.

Together we can work to re-start our regional economy and create a stronger, happier and healthier community for us all.

As always, we recommend contacting your Business Relationship Manager for more detailed and specific advice for your business.

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Dan Campbell moved to Thunder Bay from Paris…. Ontario. As a Commercial Account Manager, Dan advises our business members in Thunder Bay, on the most effective solutions to achieve their objectives. Dan is a graduate of McMaster University, and is passionate about financial literacy. In his free time, you can find Dan outdoors hiking with his Dog Kobe or trying to keep up with his wife Rachel on the volleyball court.