Joined: Nov 2007
Posts: 27
All businesses that have had to shut down have been hit financially
6/17/2021 at 10:13 AM
"Isn't the govt still helping out those businesses that had to close ?"
While yes they are, it is not nearly enough.
Since businesses had to close down on May 9th or 10th in this most recent shutdown, they have received a one time payment from the provincial government of $5,000. Businesses are still required to pay rent, insurance, utilities, business loans, etc. during this time.
Edited to add: That $5,000 payment...It doesn't matter if you own 1 business or 10. Everyone gets the same $5,000. So in the next little example, imagine trying to pay your monthly bills if you had several locations. You wouldn't be able to.
So imagine $2,500 in monthly rent, $750 in utilities, $200 in insurance, $1,000 in a business loan, monthly franchise agreements, monthly licenses and permits that carry a cost, on and on. These figures are going to be obviously larger or smaller depending on the size / type of business, however that $5,000 while I am sure is appreciated, it is not nearly enough as we head into week 6-7-8 of this lockdown.
As for the Federal governments programs, there are two that businesses can apply for right now CEWS (Wage subsidy) and Rent Relief subsidy. If your business is closed right now, your staff aren't working, and so you will not be receiving any wage subsidy. Business owners do not qualify for wage subsidy themselves, they have to apply for CERB. So if you are a business owner who also works 40+ hours a week at your business, the best you can get is CERB.
The rent relief program is probably their best program, as it will cover around 80% of the monthly rent while closed due to shutdowns, and around 35-40% of the rent when allowed to be open.
I guess the short version is, much like most people cannot afford to live long term on the $900 biweekly CERB payments (mortgage/rent, car, groceries, utility bills, insurances, on and on), businesses cannot afford to get by on the current programs in place.
The other thing to factor in, some of these businesses have had to close during their busy seasons. Imagine at Christmas time when retail stores had to shut down. They make most of their money in November and December. Right now would be prime season for salons who make money from grads, weddings, and other events. Being allowed to reopen in July in the middle of your dead season will do little to help some businesses.
Edited by JoshuaP, 2021-06-17 10:17:39