How COVID-19 Has Affected Business
COVID-19 has affected the way everyone around the world socializes, interact, and make a living. People aren’t able to go out and spend the way they normally due which in return creates havoc for the economy. Travel bans and social distancing have forced many businesses to temporarily shut down. In some cases, for good. 8
The COVID-19 pandemic and notoriously shown its ability for equalizing everyone. The rich and poor, the celebrities and regular public. Everyone that has caught it, due to rapid spread and no vaccine, has suffered equally to others that have caught it. No amount of money is going to keep a person alive from this virus. On top of the health issues along with COVID-19 possesses, financial problems have many businesses bleeding funds as a result of this pandemic.
Physical Locations Still Need to Pay Rent
As many restaurants and store owners that were forced to close and stop making profits. They are still expected to pay rent and property taxes. The rent relief budget that Justin Trudeau had promised won’t be enough to help some businesses last while commercial landlords are still requesting rent.
While those laid off are being assisted by the Canadian Emergency Response Benefit or Stimulus check for Americans. Adding a great deficit to the Canadain National Debt already for the year 2020. Federal Government is expecting a deficit of $252 billion as an outcome to the $146 billion plan to cushion the economy. This is a mix of CERB payments and rent relief for businesses. While Trudeau authorized the rent relief for April, that wasn’t enough for many businesses. Businesses with physical storefronts expected to pay rent without making revenue were forced to close their doors permanently.
This is not the case for online video conference application Zoom. As they have seen it’s company’s net worth skyrocket from $3.5 billion in February to $8 billion in April. As many people are shopping online, a lot of big companies are having big sales to attract customers to them and away from competitors. The smaller businesses are truly struggling.
Online Business is Booming
While most storefronts are forced to close the online business is booming. Making warehouse workers, Canada Post employees, and other delivery services essential. Many of Amazon’s warehouse locations have had breakouts of COVID-19. As the virus can survive on packages for so long and for the most part packages are safe. But the high demand for these services has put delivery personnel at great risk of COVID-19 exposure. A number of Toronto restaurants that have been for decades that were pressured to close up after the inability to pay for rent while revenue seized.
Some restrictions have been lifted allowing more and more businesses to get back to regular business. Only time will tell if that decision was wise. If COVID-19 numbers stay down hopefully we can get back to normal life all together. We are all in this together.
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