A total of $117 billion of new debt in Canada has been loaded onto small businesses as a result of the COVID-19 pandemic. This is according to the Canadian Federation of Independent Business estimates on an online survey of small business owners from June 26 to July 2. Around 2,100 of the study’s 4,502, respondents agreed to reveal how much debt they had incurred because of the coronavirus pandemic.
The SMEs that gave information for the CFIB survey had $135,000 in debt for a total of nearly $285.4 million, which would result in $117 billion of total COVID-related debt for small businesses as a whole. The study focused on Statistics Canada’s count of SMEs in Canada.
The 110,000-member association also estimates that only 24 percent are back to normal revenue, but 35 percent are back to full staffing, and 58 percent of small businesses have re-opened fully. Online surveys cannot be assigned a margin of error because they do not randomly sample the population. This is according to the polling industry’s generally accepted standards.