A survey sent out to the business community across the region shows a significant amount of concern due to COVID-19.
Ian McCoy, director of investment attraction with Economic Development Greater Saint John, said 183 companies responded to the survey.
“Some of these numbers are a little bit shocking and scary to look at because this is what’s happened over the last two months,” McCoy said.
Of those who responded, 69 per cent are considered small businesses and 13 per cent had more than 50 employees. Fourty-eight per cent of the businesses are over 20 years old and 13 per cent are over 50 years old.
The businesses are in hospitality and tourism, retail, professional services and construction spread across Saint John and the surrounding areas.
“Thirty-one per cent of our businesses have closed temporarily, 44 per cent have laid off staff and 28 per cent of them have scaled back their operations. It is going to take a major hit on our economy and we know this, but now we have to recover,” McCoy said.
McCoy said 93 per cent of the businesses who responded have lost revenue and 32 per cent of those have lost more than 80 per cent of their revenue.
“This shows the depth of the impact on our economy. It is deep, it is harsh and it is something that we have to work together as a group and as a community to rebound from but you can see how this has impacted us in the short term,” he said.
On the topic of funding, 58 per cent of the businesses thought federal funding was helpful and 30 per cent thought provincial funding was helpful.
Thirty-two per cent had applied for and received funding and 20 per cent were awaiting confirmation. About half the businesses surveyed have received some type of support from government while the rest have applied or did not qualify.
At the time of the survey, rent relief for businesses had yet to be announced, which McCoy said may have contributed to 57 per cent of businesses saying there are gaps in the funding formulas.
One issue raised was loans for businesses with slim margins because it doesn’t help in the long run and only delays the inevitable. More grants was requested for smaller businesses.
McCoy said 82 per cent of the businesses are very concerned to somewhat concerned but on the plus side that concern isn’t growing. The businesses surveyed did say 28.4 per cent were concerned they may have to close permanently and 38 per cent of those are small businesses.
“So we have to take whatever actions we can and provide whatever support we can to mitigate this and to make sure this does not come true. This is a concern it’s not the actual case. At this point, only two businesses that responded to the survey have actually closed permanently,” he said.
McCoy said 40 per cent of the businesses saw new opportunities for growth.
