(Trinidad Guardian) Well over a year into the COVID-19 pandemic, thousands of businesses facing hardship have been forced to permanently close their doors. While some owners have had their commercial properties and private homes repossessed by banks, others are living in fear of suffering the same fate if they are unable to pay their monthly instalments.
Frustrated business owners from Trinidad to Tobago complained that some banks are not being flexible enough with them during this time of crisis and are pleading for help. Many others said they have been encountering problems accessing funding from the $300 million loan facility made available by the Government for struggling businesses during this pandemic. Business owners have been forced to look at alternatives to commercial banks like credit unions and the National Entrepreneurship Development Company Limited (NEDCO) as they make last-ditch attempts to save their livelihood.
According to a survey done by the Confederation of Regional Business Chambers–which includes 15 business groups among them the Supermarket Association, Petroleum Dealers, The Yachting Services Association and establishments from the East all the way to Siparia in the deep South–some 5,000 businesses have closed in T&T over the last 12 months since the pandemic hit in 2020. The coordinator of the confederation Jai Leladharsingh said the information came from a survey of their associations done in February. Leladharsingh said that many business owners are struggling and are in danger of having their properties repossessed.
“There are banking foreclosures taking place in the construction industry, companies in the services sector, companies involved in the restaurant sectors,” he added.
Leladharsingh said banks have not been helpful to the business community. He recommended that the banks give the businesses a loan moratorium for a year with no accrued interest.
“Banks make big profits while small businesses are suffering. They need to help businesses restructure their facilities.”
T&T Chamber and Tobago Division
CEO of the T&T Chamber of Commerce Gabriel Faria, meanwhile, said that a poll being done with non-essential businesses in the retail sector, bars and restaurants shows that so far ten per cent of businesses in that sector have closed their doors permanently.
He said the chamber was having discussions with the banking sector and the banks are making an attempt to work with customers to meet their needs.
In the sister isle, Chairman of the Tobago Division of the T&T Chamber Diane Hadad said 250 businesses have closed in Tobago since the pandemic hit. She said there has been an increase in banks repossessing business properties in Tobago.
She called on banks to give businesses a break and the opportunity to renegotiate what they owed banks before the pandemic.
“Bank foreclosures during this time should be a no-no. Let us say in March 2020 the business owner’s debt was a million dollars, let us stop there and let’s start a conversation about how we will begin to repay in 2022. So there should be a moratorium but not with accrued interest,” Hadad said.
Barkeepers and Operators Association
Public Relations Officer of the Barkeepers and Operators Association of T&T Anil Maraj said 50 bars have closed permanently in T&T over the last six months because of restrictions on their operations.
He said some bar owners are owing the bank for their properties and they are facing the likelihood of repossession because of their inability to pay their mortgages.
He urged bar owners to work with their banks for solutions to their problems.
San Fernando Area Chamber, Business Association
President of the Greater San Fernando Area Chamber of Commerce Kiran Singh estimated that over 100 businesses have closed in the area. He said there are reports that banks could be repossessing commercial properties soon as businesses cannot afford to pay their mortgages. Singh said banks need to work with smaller businesses just like they do with the larger conglomerates. He also suggested that they lower their interest rates.
President of the San Fernando Business Association Daphne Bartlett has estimated that 30 per cent of the smaller businesses, while almost 20 per cent of the medium-sized businesses in the San Fernando area and environs have closed permanently over the last 12 months.
Based on personal observation, Bartlett said she has seen “For Sale” signs increasingly being put up by business owners.
“Many small businesses have closed their doors because there are no income and expenses like rent, phone and electricity are accruing. These businesses would hardly be open in the future. Businesses are finding it difficult to finance their loans and credit facilities, the banks are hounding them down for even small amounts. These banks make huge profits annually.”
She recommended that banks offer a moratorium on small business loans until the economy improves.
Arima Business Association
The Arima Business Association has reported that almost 200 businesses have closed in that area over the last 12 months.
President of the association Reval Chatergoon, whose area covers from Arouca to Valencia, said there are some smaller businesses under threat of the banks repossessing their commercial properties.
He suggested that banks give businesses a six-month to a one-year moratorium and lower interest rates to assist them.
“There are a lot of businesses although closed still have to pay utilities, rents, mortgages, bank interests although we are not making any income.” He said they need “more time” to be able to pay their loans. This, he said, is in addition to the need for more vaccination. Downtown Owners and Merchants Association President Gregory Aboud, meanwhile, said that they do not have any statistics on business closures, and only when the economy is fully re-opened they will know.
Port-of-Spain business being offered for sale or rent.
