Small Business Week, which is currently underway, is usually a time to celebrate the vibrancy and uniqueness small businesses bring to each community.
Small businesses are the backbone of the province’s economy and their resiliency and innovation should be recognized more than ever in the face of a global pandemic, according to Small Business BC (SBBC).
However, many businesses continue to struggle amid the COVID-19 pandemic, according to Brian Corcoran, board chair of the Richmond Chamber of Commerce.
According to data provided by the Chamber, only 31 per cent of Richmond-based respondents to a B.C.-wide business survey in July listed the old commercial rent assistance program as among the three most important federal supports to their business.
Small, independent and long-standing businesses are still “struggling to adapt throughout the pandemic,” said Corcoran.
“We have a local sports retailer, and with so many leagues and sports’ — school teams — having been suspended, they’re struggling. And they’ve been in business for decades.”
But, Corcoran says the new commercial rent assistance program — announced by Ottawa earlier this month — should “hopefully provide them with some assistance so they can keep their doors open.”
Under the old program, the onus fell on the landlords to apply for a commercial rent subsidy. But, faced with the “undue burden of paperwork,” landlords — particularly those with a large number of properties in the Lower Mainland or B.C. — were “just less likely to apply,” said Corcoran.
The sports retailer is a “perfect example” of the issues of the old program, he said — with their landlord not willing or able to make the application, the business has been left dealing with rent deferrals.
“It did miss its mark from the get-go. At the end of the day, the rent relief didn’t get to the entities that needed it, being the tenants,” Cororan said.
But things are looking up with the new program.
While details are still scarce, it seems like the money will now be going directly to the tenants, said Corcoran.
“So, it sounds like the government has heard the feedback from businesses, who are struggling, and is working to create a program that I think will work out better.”
According to a press release issued by the federal government, the new Canada Emergency Rent Subsidy will support businesses, charities and non-profits that have suffered a revenue drop, by subsidizing a percentage of their businesses — on a sliding scale — up to 65 per cent of eligible expenses until Dec. 19, 2020. Organizations will also be able to make claims retroactively for the period Sept. 27, 2020 to Oct. 24, 2020.
Organizations will also be able to make claims retroactively for the period Sept. 27, 2020 to Oct. 24, 2020.
Meanwhile, businesses temporarily shut down by a mandatory public health order would be able to apply for a 25 per cent top-up of the subsidy, in addition to the 65 per cent.
The Chamber is encouraging the government to provide further details, said Corcoran, so businesses can start applying.
He added that he would like to see the government take a more “holistic” approach with its aid to commercial businesses, and consider both the position tenants are in right now or over the next three months, but also where they will be in 2021.
The wage subsidy has also been extended to June 2021, a program which has been “quite helpful” for the Chamber’s members, said Corcoran.
“The benefit of the wage subsidy program is that it does allow small businesses to try and retain their employees through an otherwise very difficult time.”
