Small businesses worried temporary closure could become permanent
KITCHENER -- Some small businesses are worried that the financial impact could make their temporary closure permanent.
The Ninja Warrior Factory, an obstacle course fitness gym in Kitchener, is one of many forced to closed down due to COVID-19.
“I have utilities, I have insurance and so forth,” said co-owner Chris Lasso. “I cannot charge for membership right now.”
Lasso also owns Double Dragon Martial Arts in Kitchener and claims rent for both places is close to $10,000 a month.
“I haven’t begun to get any return of investment for it,” he said. “I’m about to lose it all.”
Earlier this month, the federal government announced an economic support package to help small businesses with tax deferrals, wage subsidies, and loans.
“I wouldn’t even qualify for a loan most likely,” said Lasso. “If I did: how would I pay it back? I have no income.”
The owner says he has reached out to his local MP who told him he will be pushing parliament for a recreation or fitness credit to help businesses like his get on his feet.
Another business owner says if he doesn’t get government help the only alternative is to file for bankruptcy.
David Moylan, owner of Waterloo Kung-Fu Academy, says he is facing similar troubles.
“I have a family of five and this is what supports us for everything,” he said. “It is an immediate turn off of revenue.
“I heard from my landlord’s representative and the word is they have their obligations too, property taxes, all these different things.”
CTV Kitchener reached out to the landlords of these properties and did not hear back from them as of Wednesday evening.