A sign on a shop window indicates the store is closed in Ottawa, Monday March 23, 2020. The Canadian Federation of Independent Business is raising its estimate for the number of businesses that are considering the possibility of closing permanently. THE CANADIAN PRESS/Adrian Wyld

A sign on a shop window indicates the store is closed in Ottawa, Monday March 23, 2020. The Canadian Federation of Independent Business is raising its estimate for the number of businesses that are considering the possibility of closing permanently. THE CANADIAN PRESS/Adrian Wyld

Small business struggling amid COVID-19 pandemic looks for aid in Liberals’ budget

President Dan Kelly said it is crucial to maintain programs to help businesses to the other side of the pandemic

A group representing thousands of the country’s small businesses says many hope the Trudeau Liberals heed their concerns and reshape aid in the upcoming federal budget to help them survive the COVID-19 pandemic.

The Canadian Federation of Independent Business said lockdowns and public-health restrictions hitting non-essential retail stores have stretched some to the financial brink, making them reliant on federal aid to cover everyday costs and keep employees on payrolls.

President Dan Kelly said it is crucial to maintain programs to help businesses to the other side of the pandemic but with fixes to catch companies still slipping through cracks.

Kelly also said he hopes the Liberals add a new round of funding to a popular loan program to increase the amounts available to $80,000 and make up to half of that forgivable if paid off on time.

But Kelly isn’t all that confident the Liberals will do anything, and he believes that federal momentum to fix economic supports has stalled after the Liberals amended some programs and extended deadlines for others.

While the Liberals have changed eligibility for some programs, such as the revamped rent subsidy that includes a lockdown top-up, Kelly said thousands of needy small businesses have been unable to access federal programs without any indication their concerns will be addressed.

“It really does feel like Ottawa has moved on,” Kelly said in an interview.

“They’ve moved into .. other files, and I think it’s a serious miscalculation,” he added. “Look, if I’m wrong, I’ll be delighted to be wrong — that if there’s going to be a surprise, a positive announcement of further supports to small businesses that are really hit hard, but I’m not seeing any momentum from Ottawa.”

The government has targeted June for an end to the federal wage and rent subsidies, as well as the small-business loan program. The economy is expected to start growing faster in the second half of the year as vaccination rates rise alongside consumer spending, fuelled by built-up savings through the pandemic.

“Until people start spending, businesses are not going to have to the kind of recovery they’re hoping for, and I think it’s critical that we continue to provide support for people who can actually create that spending,” said Hassan Yussuff, president of the Canadian Labour Congress.

A Bank of Canada survey of consumer expectations showed that respondents anticipated spending more than one-third of extra savings from the pandemic over the next two years.

The survey released Monday also said consumers expect their spending patterns to return to normal in about one year, with post-vaccination increases on a wide range of goods, especially travel and social activities.

Getting the economy through the pandemic, with the latest wave renewing lockdowns in parts of the country, and laying the groundwork for recovery will be a balancing act the Liberals will look to strike in the April 19 budget.

While the number of businesses experiencing steep revenue declines appears to have stabilized, half of businesses in the arts, entertainment, accommodation and food services sectors are reporting revenue declines of 30 per cent or more compared to last year, according to a review of Statistics Canada data by Deloitte and the Canadian Chamber of Commerce.

Finance Minister Chrystia Freeland has promised to spend up to $100 billion over three years should economic conditions, particularly employment numbers, require it.

Kelly said his concern is that stimulus now, while potentially helpful, could lead to spending on businesses that remain open through lockdowns and not on those that could use the spending.

“My fear is money is going to go to buy big-screen TVs at Costco online because the parts of the economy that have been bleeding are not a fully open, (and) Canadians are still being told that they’re not supposed to leave their homes,” Kelly said.

“You have got to make sure that those things are taken care of before the government gets into the stimulus game.”

Prime Minister Justin Trudeau spoke Monday with Conservative Leader Erin O’Toole. The Opposition leader’s office said in a statement that O’Toole asked Trudeau “how many jobs the budget would create,” without saying what the answer was, and that Trudeau “did not commit that his budget would reduce taxes on families.”

In a tweet, Trudeau said the budget would “focus on creating good jobs while fighting climate change, growing the middle class, and getting us past this pandemic.”

Trudeau was scheduled to speak later Monday with Bloc Quebecois Leader Yves-Francois Blanchet. The prime minister said last week he wanted to speak with all opposition leaders early this week about the budget.

Jordan Press, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

BusinessCoronavirus

Just Posted

File photo (Aaron Hemens/Capital News)
Overturned kayak in Mission Creek prompts police response

Kelowna RCMP is looking to speak with anyone who may know the individual associated with the kayak

A drug bust on Government Street in Duncan on Tuesday, March 30, led to a "substantial seizure" according to the North Cowichan/Duncan RCMP. (File photo)
Search continues for diver who went missing in Okanagan Lake

Search and rescue, RCMP underwater recovery team looking for diver missing since Saturday afternoon

Rutland Senior Secondary (Barry Gerding/Black Press)
UPDATE: List of Kelowna school COVID-19 exposures expands

School District 23 says two more schools have been exposed to the virus

A man and woman, both 33 and from Kelowna, were arrested on Postill Lake Forest Service Road in possession of two stolen vehicles Friday, May 14, 2021. (File photo)
Kelowna duo arrested with stolen vehicles after ‘brief’ bicycle getaway attempt

A man and a woman were arrested on a forest service road on numerous pending charges

The warm weather means time for a camping trip, or at least an excursion into nature. How much do you know about camps and camping-related facts? (John Arendt - Summerland Review)
QUIZ: Are you ready to go camping?

How many camp and camping-related questions can you answer?

Daily confirmed COVID-19 cases reported to B.C. public health, seven-day rolling average in white, to May 12, 2021. (B.C. Centre for Disease Control)
B.C. preparing ‘Restart 2.0’ from COVID-19 as June approaches

Daily infections fall below 500 Friday, down to 387 in hospital

Penticton city parks staff were busy this week using the beach grater to sift through sand, getting the shores ready for beach season. When it comes to beach clean up they are collecting run-off debris, pulling weeds and picking up litter. (Penticton photo)
Hottest day of the year, so far, in the South Okanagan

Penticton city park staff cleaned up the beaches getting ready for the season

KCR Migrant Support Worker, Javier, had an exciting day escorting his son Ian with him during ‘Take your Child to Work Day’!
KCR: Volunteering is being part of a whole

KCR Community Resources shares stories of its volunteers in a weekly column

Sicamous RCMP Sgt. Murray McNeil and Cpl. Wade Fisher present Cody Krabbendam of Ranchero with an award for bravery on July 22, 2020. (Contributed)
B.C. boy receives medal of bravery, scholarship for rescue of child at Shuswap beach

Last summer Cody Krabbendam jumped into the lake to save another boy from drowning

This is what the glowing boulders look like at night at 28 Huth Ave. (Submitted)
PHOTOS: Glowing boulders popping up in the Okanagan

Local landscaper Brandon Messier also brought the Lost statue to its new home

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Coldstream Fire Department is on-scene Sunday, May 16, battling a fire in a Matner Lane orchard just up the hill from the firehall on Aberdeen Road. (Jennifer Smith - Morning Star)
Okanagan fire crew tackles orchard blaze

Fire broke out just before 2 p.m. on Matner Lane, which is just up the hill from the Coldstream firehall on Aberdeen Road

Someone or something is vandalizing birdhouses built and erected along Salmon Arm’s Foreshore Trail, much to the chagrin of a Shuswap biologist who looks after the houses. All but one of 32 along the trail are occupied. (Facebook photo)
Ongoing birdhouse vandalism rocks Shuswap trail, groups

Eight more boxes were destroyed Saturday, May 15

Most Read