Businesses say it’s too early to be taken off life support

CFIB urging continued wage and rent subsidies

TORONTO — Things may seem to be returning to normal in cities across Canada, but for many small and medium-sized businesses, there’s still a long way to go. That’s why the Canadian Federation of Independent Business has launched a petition asking the federal government not to phase out wage and rent subsidies just yet.

CFIB says only 35 per cent of small businesses have found their footing and returned to their pre-pandemic normal. What’s more, the lobby group says many of their members in hard-hit sectors such as tourism and events don’t expect to see their revenues bounce back until 2022.

But that’s not stopping the government from closing the window on crucial supports, such as the Canada Emergency Business Account, which ended its application period at the end of last month. Ottawa has also already begun phasing out the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS).

“Small business owners are keen to replace subsidies with sales, but with only a third of business owners back to normal levels of sales, it is just way too soon to phase out the wage and rent subsidies,” said CFIB president Dan Kelly in a press release. “The government has already started to aggressively cut these important supports just as many are in the process of reopening their doors or facing ongoing capacity restrictions.”

As provinces reopen their economies at different rates, small businesses and restaurants are dealing with ongoing challenges around capacity limits and staffing shortages. British Columbia moved to its Step 3 at the end of June, which allowed greater capacity at restaurants and bars, extended liquor service hours, and relaxed rules for fitness studios, casinos and clubs. Alberta also transitioned to its Stage 3 in early July ahead of Canada Day, permitting retail businesses and restaurants to run at full capacity.

In Quebec, capacity restrictions in retail locations have been lifted since July 12. Ontario moved up reopening plans for its Stage 3 to July 16, allowing indoor dining and gyms to reopen after months of being shut down. Food service businesses can now operate at 25 per cent capacity, with a maximum cap of 250 people.

While things are improving, the CFIB argues it’s still too soon to pull the plug on the supports that have helped carry many business owners through the pandemic. It’s calling for the government to extend CEWS and CERS to at least November, keep CEWS and CERS rates at June levels (which were 75 per cent and 65 per cent, respectively, and now both sit at 60 per cent), and to ensure that all independent businesses continue to have access to those supports.

“After 16 long months of the pandemic, restrictions are finally being lifted, but for many small businesses it’s not over yet,” Kelly said. “It’s critical that we come together at this time, with a federal election looming, to ensure that the support programs are there to get us to the COVID finish line.”