Small business advocates call on Ottawa to halt 'phase out' of wage and rent subsidies
Despite eased restrictions, and the prospect of welcoming back U.S. visitors on the horizon, small business advocates say it’s still too soon to pull back on critical federal subsidies for rent and wages during the pandemic.
The Canadian Federation of Independent Business is calling on Ottawa to halt the current phase-out of the two programs to buy more time for struggling businesses to recover.
Though local businesses that have relied on tourism are looking forward to the border reopening to American tourists next month, Gastown Business Improvement Society executive director Walley Wargolet said there’s still no replacing the wave of visitors that used to flood the area with each year’s cruise ship season.
“Over a million people come through this city on those cruise ships. So that will not happen,” he said. “Some of our businesses experienced up to a 90 per cent loss in revenue, when you look back at year over year to 2019 prior to the pandemic.”
Wargolet while there are hopes for a full cruise season next year, In the meantime many have been helped by federal wage and rent subsidies.
“I’ve talked to a lot of business owners here, and a lot of them have said without those subsidies, they’re not sure they would have been able to weather the storm of the pandemic,” he said. “The impacts on the really tourist-centric businesses are going to be felt quite heavily if we don’t see those subsidies continue.”
The Canadian Federation of Independent Business’s provincial affairs director, Annie Dormuth, said those supports are still needed, and the organization has started a petition campaign online to call on the federal government to put a pause on phasing out the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS), and extend them further into the fall. Currently, the two programs have only been extended until Sept. 25. Dormuth said the maximum subsidy amount available is also going to drop over the next several weeks.
“The percentage of what basically businesses can access will be further reduced as we head into the summer months here and into September,” Dormuth said. “We’re definitely calling for an extension until at least November.”
The CFIB says says only about a third of businesses are back to normal sale levels and others, including some in the tourism industry, aren’t expecting revenues to recover until next year.
In an email to CTV News, the press secretary for federal Finance Minister Kat Cuplinskas said businesses will have access to a new hiring incentive subsidy called the Canada Recover Hiring Program until November, while a loan program for highly affected sectors is available until December.
“The recent federal budget builds on this support,” she said, and added that also includes a “more accessible” financing program for small businesses. “Now including financing for operating expenses and start-up costs, a digital adoption program, the ability to immediately expense up to $1.5 million of capital investments, and a reduction in credit card transaction fees.”
Dormuth said the loan program has “narrow eligibility” and starts at $25,000, and the new hiring subsidy is lower than what’s currently available.
Warglolet said they’re encouraging people to shop local, and are hoping more office workers return to the area in the fall. But when it comes to tourism, rebounding from the pandemic is going to take time.
“There’s a lot of optimism,” he said. “But we’re not there yet.”
CTVNews.ca Top Stories
BREAKING Former Air Canada employees among suspects identified in gold heist at Pearson airport: police
Police say one former and one current employee of Air Canada are among the nine suspects that are facing charges in connection with the gold heist at Pearson International Airport last year.
'$6.66 per day': Advocacy groups disheartened by funding in budget for disability benefit
Advocacy groups across Canada are expressing widespread disappointment about the amount of funding earmarked in the 2024 federal budget for the long-awaited Canada Disability Benefit.
BREAKING Toronto Raptors player Jontay Porter banned from NBA
Toronto Raptors player Jontay Porter has been handed a lifetime ban from The National Basketball Association (NBA) following an investigation which found he disclosed confidential information to sports bettors, the league says.
Earthquake jolts southern Japan
An earthquake with a preliminary magnitude of 6.4 hit southern Japan late on Wednesday, said the Japan Meteorological Agency, without issuing a tsunami warning.
MPs summon ArriveCan contractor to the House to be admonished in rare parliamentary display
Enacting an extraordinarily rarely used parliamentary power, MPs have summoned an ArriveCan contractor to appear before the House of Commons on Wednesday afternoon to be admonished publicly for failing to answer their questions.
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
Gas prices across Ontario expected to climb to levels not seen since 2022, analyst says
Ontario is going to see a big jump at the pumps later this week as gas prices in the province hit levels not seen in nearly two years, according to one industry analyst.
Ancient skeletons unearthed in France reveal Mafia-style killings
More than 5,500 years ago, two women were tied up and probably buried alive in a ritual sacrifice, using a form of torture associated today with the Italian Mafia, according to an analysis of skeletons discovered at an archeological site in southwest France.
Paul McCartney and John Lennon’s sons have released a single together
A new Lennon and McCartney collaboration is the last thing anybody expected.