In a letter to the federal minister responsible for small business and the minister of finance, North Island-Powell River MP Rachel Blaney stated that many businesses in her riding are not receiving support they need during the COVID-19 crisis.
“Especially in more rural and remote communities, local businesses as small as one person provide critical services and are really the heart and soul of our towns,” stated Blaney in a media release. “They can’t be left behind by government to struggle and go under while we take necessary steps to fight this virus.”
After gathering feedback and experiences from local business owners, Blaney’s letter points out shortcomings in the government programs, and offers solutions “to ensure the greatest number of these businesses make it through the pandemic and are able to continue contributing to healthy local economies once this is over.”
Blaney stated that issues with eligibility criteria for the Canada Emergency Business Account (CEBA) and Canada Emergency Wage Subsidy (CEWS) are ruling out many small businesses that rely mostly on contract labour, or whose proprietor is paid dividends rather than a wage. Some business owners are encountering additional barriers to the Business Credit Availability Program (BCAP) imposed by banks that were not part of the government requirements, she added.
Canada Emergency Commercial Rent Assistance (CECRA) has a very high threshold of 70 per cent revenue loss with no support for those with slightly less losses and no clarity for landlords who own the property outright, according to Blaney. Regional Relief and Recovery Funds (RRRF) haven’t yet been rolled out in many communities, she added.
The letter implores the ministers to “ensure that this funding is dispersed with a renewed sense of urgency. Many of the businesses, communities and people in my riding are depending on it, ” stated Blaney.
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