Commercial Rent Payment Defaults and Evictions During COVID-19 is the fault of Government which followed The World Health Organization – May 26, 2020,
Now, I’d like to point out that I’m a small business owner also, the difference between myself and most of the other Ontario business owners is I don’t like going into debt to serve my customers or pay my private contractors. If I see any signs that I’m going into debt I’ll either try to create value where there was none before or I’ll get rid of whatever is not selling.
Also, I work with private contractors and don’t use employees, I’ve always thought it smarter to overpay for private contractors than deal with the liability of employees.
So for me, I look at business differently, I personally, don’t understand why small businesses want government money, I assume to take the money and then go bankrupt? I’m not sure, but I’d never want or accept Government money, no more than ever is the perfect time to declare bankruptcy which let’s be honest is nothing more than restructuring.
What I will say however is I’m not entirely sure if these small businesses incorporated, because it amazes me how many small businesses don’t incorporate in Ontario, because they say it’s complicated, what I find complicated is having all my assets in my personal name and paying a higher tax rate than I need to pay to government people who are intentional devaluing the Loonie to pay for inflated government salaries.
Now as a small business, why would you want to go in debt to entity like that? I’m not sure why, I don’t get it personally if my company can’t pay its bills because of the actions of the government, I’m going bankrupt, screw the commercial property owners, most of them are charging inflated rents anyway, let those commercial property owners wait on a condo developer to come to bail them out!
The government has effectively destroyed my beautiful nation and personally what I know is the only way to revive it is to cut regulations. Canada, in my opinion, is on the wrong side of history right now. Currently there is something called the Canada Emergency Commercial Rent Assistance (CECRA) which is administered by the Crown Corporate entity in Canada inflating residential and commercial real estate prices in Canada the Canada Mortgage and Housing Corporation (CMHC).
Canada shouldn’t be in this bad a shape, we survived the 2007-2008 housing crash and primarily because of Stephen Harper and Stephen Poloz, they pumped up housing prices to appease the corporate interests who were terrified of the rising Canadian dollar at the time. This is what has led to the crash, COVID-19 was merely the pin and being that Justin Trudeau is by far the worst Prime minister for the Canadian economy in history most of his economic responses will have to be paid with devalued Canadian dollars, so why as a business owner would you want to get sucked into that inflation trap when you’re going to receive Canadian currency after it’s been deflated?
The commercial property owners will gain from the devaluing of the Canadian dollar, however, you as a business entity which has to get customers to buy, you’ll be getting the money after it’s been devalued and there’s no telling if the customers will be there like they may have been prior.
Clearly prior customers weren’t paying you that much money for you to be in this dire situation so quickly, so for myself, I’d personally declare business bankruptcy, let the government take the loss and make the government beg you to come back. That’s a lot of tax revenue the government would lose and it’s not like the commercial real estate market was exactly booming prior to COVID-19.
Ultimately businesses should do what’s best for them, but I think they’re approaching this all wrong!
Interesting times ahead!