FINAL April 29
The survey went out to a group of IRAP clients and contacts in mid-April 2020. The results are not scientific or statistically significant. They are intended to provide a view on a sample group of tech-based companies in Calgary.
As of April 28, 2020, 20 companies responded.
65% decrease in demand, 10% increase in demand, 25% no change/too soon to tell.
10% are Increasing Employees; 20% are Decreasing Employees; 60% have all employees working from home; 25% have most working from home; 40% are continuing some operations (such as manufacturing, labs) on premise. Many are using the time to Build Strategically (75%) or Catch Up (45%). Some are exploring Minor (45%) or Major (20%) Pivots.
63% use SR&ED and 63% plan to access the $40K line of credit. 20% are looking for a larger line of credit. Close to 50% will use the CEWS-75% wage subsidy (if revenue Y/Y or M/M is down 30%); Close to 35% will use the CEWS-10% across the board wage subsidy. 20% plan to use Youth programs and 20% plan to use the CERB Employment Insurance programs for work share or laid off employees.
This survey was initiated before the announcement of the IRAP Innovation Assistance Program (IAP) (announced April 17) and the Youth and Student Programs (announced April 22). Some of the respondents to the survey indicated that their company was pre-revenue and/or did not have employees or has only contractors, and therefore did not fit the main programs. Perhaps these companies can access the IAP, Youth or SR&ED.
For tech companies with revenues and/or employees there are a number of Federal emergency programs that can help with cash flow as they adjust to the current new business, market, employment and social environment.
Companies are adjusting to the new situation, assessing and accessing the many support programs, and reviewing the new world reality to strategize, plan and execute.