Thank you, Chair. It's nice to see you again. It's nice to see MP Dzerowicz and MP Fraser. I'd also like to thank MP Kelly for asking me to join today to address the federal response to the COVID-19 crisis in small businesses across Canada.
I'm very fortunate that I've met over 35 ministers, MPs and MPPs from across all party lines during a global crisis while hosting round tables with other small business owners who are not sure where to turn.
The last 13 months have been incredibly difficult. My business is down 97% in gross revenue, which corresponds to revenue losses of more than $3 million. I'm not alone. Many of these small businesses are in sectors that you and your families have supported over the years: the arts, travel, restaurants, hospitality, tourism and more. We're not expected to return to a normal balance for up to five years, yet support is expected to be reduced starting in July.
In March of 2020, I had to lay off my entire staff, some of whom had been with me for more than eight years. I've yet to be able to rehire one of them part time, let alone full time. Not only did they lose their jobs; they also lost their full benefits paid for by a small business.
Although you can empathize with what I'm saying, I think it would be hard for you to understand what so many Canadians continue to endure until you found yourself in this position.
Today, I'm going to discuss five critical issues facing Canadians who own and work for small businesses.
First, small business owners took out loans before COVID-19. These loans have personal guarantees. Minister Freeland's office directed me to Minister Champagne to discuss my idea of no-fault bankruptcy; he has yet to reply to any of my multiple outreaches. I've done the same with Minister Lametti and his parliamentary secretary. Again, I have not heard back.
This should be of utmost importance. Canadians should not lose their businesses, their homes and all of their assets through something they did not create. Stop and imagine for a second that you and your family lost everything through no fault of your own but because of government decisions. How does that thought even make you feel right now?
Second, the Canadian emergency response benefit has been greatly appreciated, but it's not enough. In Ontario, $450 a week represents almost 20% less than the minimum wage. Small businesses have had to put their lives and livelihoods on hold and are not being fairly compensated for their sacrifice. I live in a simple 1,600-square-foot home. My mortgage, alone with property taxes, is $1,800 a month. I have been on the program for a year. Again, I did not put myself in this position.
Third, the HASCAP program needs to be reassessed. I met with Jeffrey Valois from the PMO and Zachary Nixon from Minister Ng's office, along with half a dozen other small-business owners, about this. There has to be a contingency for extremely affected sectors. There is a huge discrepancy between a decline of 50% in gross revenue and a decline of 90% or more in gross revenue. Small businesses cannot continue to borrow our way out of this.
Fourth, while the government made changes to the rent program to no longer allow landlords to dictate whether or not they would participate, there are still gaps. For many companies, there is not enough revenue to cover the 35% hole left in rent coverage. The sliding scale it is currently on needs to be reassessed, and we must raise that maximum coverage of 65% to something more meaningful for Canadian small business owners.
It is of the utmost importance to note as well that commercial leases also contain personal guarantees. Tenants across Canada have had their assets confiscated by landlords as they have limited revenues coming in through their doors. The Canadian wage subsidy is expected to be reduced in July. Many industries will not even have a chance to recover or resume any form of normal operations before it is reduced. Right now, small businesses are at risk, while more than 340 Shoppers Drug Mart locations have accessed the program in its full capacity and haven't lost a dime. Many industries can't even fill the 25% gap, which continues to keep employees laid off. According to the Canadian Federation of Independent Business, the CFIB, about 20% of Canadian small business owners are contemplating closing their business, which would equate to 2.4 million jobs at risk across Canada.
To survive this, small business owners need CEBA debt forgiveness as well as HST forgiveness, especially for those who are hardest hit.
I've developed relationships at all levels of government, across all party lines, by providing productive, balanced, non-partisan solutions. The uncertainty caused by delays in program development, the risk of people losing everything they've worked for, and insufficient definite direction have led to a parallel pandemic in our country: a mental health pandemic. Let small business and the government finally work together to develop tangible solutions to not only save Canadian jobs but lives as well.
Thank you so much. I look forward to your questions.