Cash flow is a major problem for many business owners according to a survey done late last month by the Alberta Chambers of Commerce.

CEO Ken Kobly says a substantial number of businesses that have been closed for two months have exhausted their reserves and are further in debt than they normally would be at this time.

"There's concern around whether the support programs the federal government t has announced will in fact be enough support for them to be able to re-open," Kobly says. "So, when we talk about wage subsidies, when we talk about the $40,000 interest free loan, all those are major concerns for folks."

He says many businesses have been able to defer utility bills and rent but at some point those bills are going to have to be paid.

Kobly says over half of those who took part in the survey say they don't believe they'll be able to repay them and 30 per cent say they're not sure if they were to come due in a lump sum payment.

He says whether customers will even come back is a concern.

"The whole issue out there right now is anxiety over opening, 'will people come into my store or may restaurant when I re-open, what will that look like and will I have a successful re-launch' that coupled with cash flow issues, there's a lot on the line for people who are small business operators right now."

He says another worry is, considering the record high unemployment, whether customers can even afford to go out and shop or eat at restaurants.

 

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