One in five small Canadian businesses say their revenues have dropped to zero and 90 per cent want governments to provide hardship grants to help cover rent and other costs, according to a new survey by the Canadian Federation of Independent Business (CFIB).

"The risk of otherwise healthy businesses failing is getting worse by the day as bills are piling up with little or no revenue coming in. We're asking provincial governments to flatten the curve on small business failure with hardship grants for rent," said Laura Jones, CFIB's executive vice-president.

Many don’t qualify for federal support programs

Jones said CFIB is encouraged that Ottawa is looking at new support for commercial rent, but adds that many don't qualify – and even if they do, it only goes so far. She said CFIB continues to recommend expanding eligibility criteria for federal government support programs.

CFIB recommends provinces create hardship grants of up to $5,000 a month for as long as COVID-19 shutdowns last, including the month of April. Two provinces, Saskatchewan and Nova Scotia, are already providing one-time grants for small businesses based on 15 per cent of a business's monthly sales revenue, up to a maximum of $5,000. 

Businesses worry about length of pandemic and cash flow

Other survey results include:

• 85 per cent of businesses think the situation will get worse for their business before it gets better;

• 80 per cent are worried about cash flow;

• 75 per cent think businesses that can respect social distancing and provide protection for employees should be allowed to reopen.

CFIB has also called for a 25 per cent reduction in annual property taxes and eviction protection for commercial tenants otherwise in good standing for the duration of the COVID-19 crisis.