Canadian small businesses rack up $135 billion in debt to survive pandemic: report

March 6, 2021

Canada’s small businesses have collectively taken on $135 billion in debt in an attempt to survive the pandemic, a dizzying amount that could hurt the country’s economic recovery, according to a report released Thursday.

The Canadian Federation of Independent Business said the average small business owner has accrued $170,000 in debt, with businesses in the hospitality, recreation and service sectors most indebted.

The debt load has left many small businesses in a precarious financial situation that could lead to a wave of closures, the CFIB warned.

The longer the COVID-19 pandemic goes on, the more bleak the outlook becomes for some small businesses, said Laura Jones, CFIB’s executive vice-president.

Source: Langley Advance Times