A survey by the Whitehorse Chamber of Commerce shows that local businesses are experiencing significant negative impacts due to COVID-19.

“The crisis will continue for businesses long after the relief and subsidies expire,” said one business owner.

“Some businesses may pop back up above water right away, but many will continue to sink without long-term financial support.”

Conducted in mid-May, the chamber’s Business Impact Survey drew responses from 211 Yukon businesses.

Of the responding businesses, 80 per cent reported loss of revenue, with half of those reporting a loss of 50 per cent or more.

The survey found that “significant gaps” exist in helping Yukon businesses weather the storm of the pandemic, with 18 per cent of entrepreneurs reporting they fear bankruptcy.

More than half of the respondents said they fear falling into greater debt, 45 per cent said they’re worried about paying bills and 29 per cent said they’re concerned they won’t retire as planned.

The chamber identified 57 federal and territorial support programs, but found that these don’t cover all entrepreneurs equally.

This is because home-based businesses don’t receive the same benefits as those leasing commercial space.

Half of Yukon businesses are sole proprietors, and some of these businesses are falling through the cracks because they don’t have payrolls or traditional employment situations.

“Smaller sole proprietor businesses need help too,” said a respondent from the Arts and Culture sector.

“CERB is OK but only available until June, (I) applied for monthly expenses assistance –– still haven’t had reply to that –– and due to home business only partial help (is) available.”

Business owners are requesting grants to help them weather the storm of COVID-19, the survey showed.

“We need grants, not loans,” said a respondent from the restaurant industry.

“How am I expected to accept a loan with little to no revenue coming in? How do I pay back the loan?”

The 30 per cent revenue loss required for some funding programs is also too high, the survey argued.

“Revenue losses required to qualify for various programs are set without regard for the actual financial dynamics within different industries,” the survey said.

Even a 10 per cent loss of revenue can result in bankruptcy for some industries, like restaurants. The restaurant industry’s average annual profit margin is nine per cent, meaning a 10 per cent reduction puts them at immediate risk, the survey explained.

Dips in tourism and product availability are also concerning for restaurant owners.

“My primary concern is failure of the supply chain,” said one restauranteur.

“Though we have been fortunate enough to maintain the bulk of our business, if we run out of key supplies, we will be forced to close.”

Business owners said they are struggling to make decisions moving forward because there’s too little clarity on the specific timing of what can reopen and when.

“(We need) a clear path to returning to regular business which focuses on a phased approach, and gives some sense of how long this will last,” one respondent said.

This is compounded by concerns over consumer confidence and buying patterns after the pandemic.

“There’s an entire supply chain potentially affected if buying behaviour doesn't resume,” said a retailer.

“It doesn't make sense that folks locally would change their buying behaviour considering the number of residents whose income was never at risk due to being government employees.

“But the buying habits have definitely shifted. That needs to be addressed.”

The survey found that reporting businesses experienced a cumulative loss of $4.4 million in March and April. The average revenue loss was $87,500.

“Each business is quite unique,” the survey said.

“For some, the loss of a few thousand dollars is as serious as several hundred thousands are for another business.”

Seventy per cent of businesses said they will reopen, though some said they are trying to pivot their business or will have to open offering a different service.

For many business owners, diversifying services is born of a do-or-die attitude.

“I have too much personally invested to see my business fail,” said a respondent.

The Whitehorse Chamber of Commerce stated in a press release it’s reviewing the findings of the survey and will share them with the Yukon’s Business Advisory Council.