Canadian tech sector calls for emergency government-backed bank loans to stave off small business bankruptcies

This translation has been automatically generated and has not been verified for accuracy.Canada’s technology sector is at risk of widespread decimation due to the coronavirus pandemic’s impact on the economy and is in need of an emergency cash infusion, according to an innovation industry trade group.

“We need a massive injection of liquidity into the economic system and the only distribution channel that could do it immediately are the banks … that have pre-existing relationships” with SMBs, Mr. Ruffolo said, noting banks have already benefited from a drop in Bank of Canada rates. The Globe has also learned that top executives with at least three big banks are also in favour – but only if the government agrees to backstop measures that would diminish their financial exposure.

Several companies have seen their revenues collapse by upwards of 80 per cent and many won’t be able to make their next payroll, he warned. Unlike in conventional industries, most lack hard assets like machinery and plants that could be used as collateral for loans.

globebusiness Loans won’t do a thing

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Wage subsidies won’t stave off job losses, business groups sayThe payments from Ottawa pale next to the size of losses small employers will see as social distancing punctures consumer spending globebusiness Big business will take handouts and still lay people off. globebusiness Well not everything can be saved. Maybe this is what the world needs. To be reset a little. Give employers some perspective globebusiness Business cares nothing for workers
Source: globeandmail - 🏆 5. / 92 Read more »