(Toronto) Two of Canada’s largest business associations are calling on provincial governments to provide financial support to restaurants, retailers and small businesses struggling with new public health restrictions.
In an open letter to the premiers, Restaurants Canada and the Canadian Federation of Independent Business said on Tuesday that many provinces had introduced a new set of restrictions on top of existing measures, putting their businesses at risk.
According to both groups, the new rules, coupled with widespread fears about the Omicron variant of the COVID-19 virus, have prompted many Canadians to cancel their holiday plans and shop online.
But many businesses still do not qualify for federal government support because their operations are not completely halted.
“The reality is that tens of thousands of small businesses across Canada will receive no government support as government restrictions dramatically reduce their ability to serve customers and public health warnings cause many consumers to stay. at home, ”the organizations wrote.
They are asking the premiers to announce a new round of provincial subsidies to small and medium-sized businesses and to pressure the federal government to restore the wage subsidy and rent assistance with the same eligibility conditions as spring assistance programs.
The groups also want the Emergency Account for Canadian Businesses (CUEC) program to be reopened with a larger loan, an increase in the forgivable portion and deferred repayment requirements.
The groups want the government to make all new aid programs more accessible, so that new businesses can benefit from them and businesses do not have to meet onerous conditions previously required.
Previous warrants have prevented companies like Anita Agrawal’s from getting help.
The CEO of Toronto-based jewelry maker Jewels4ever applied for rent assistance, but was not considered eligible because her business saw its business fall by 66%, just below the 70% required by the government.
Despite the lack of support, she continued to run her business, but admits that with Omicron, her staff are now afraid to show up for work and their bookings are already dwindling.
“On a normal day we might have eight to ten dates, but because of COVID we only had about two or three,” Mr.me Agrawal. And now with Omicron it’s even less, so it’s quite difficult. ”
While Mme Agrawal sees the need for SME owners to receive more support, she calls on the provincial and federal governments to think about longer term solutions as well.
Making commercial rent more affordable is at the top of her wishlist, since it is a significant portion of business expenses for businesses.
“We do not have a cap in this province on the increase in the amount of rent,” she said, referring to Ontario.
She fears that businesses will be forced to consider reductions or closures again if there is no lasting rent relief, and that many will have nothing left in their coffers to survive after previous waves of rent. restrictions.
“I’m very worried about the next three months and what it means,” she said. Stores may be closed again or have less traffic due to the Omicron variant and […] this is going to impact all of us because the top priority for most people is not going to be going out and spending money. ”