KITCHENER -- The Canadian Federation of Independent Business (CFIB) is calling on the federal government to extend the wage and rent subsidy programs for businesses.
Since the pandemic began, Ottawa has provided financial support to businesses through subsidies, but as the Canadian economy gradually reopens, the government is winding down these programs.
“How are we going to survive? How?” said Peggy McKnight, owner of Marlin Travel Cambridge.
McKnight said the pandemic has devastated her business. With borders closed and restrictions on travel, she said her revenue has dropped 90 per cent in the last 18 months.
She said the rent and wage subsidies from the federal government are what’s been keeping her afloat.
“It’s been instrumental in surviving the business,” she said. “We’re not doing business, and the lights still have to be on, the rent still has to be paid.”
The subsidies are set to end Sept. 25, CFIB has started a petition to stop that.
“To help businesses recover and to make sure they are able to recover as they reopen,” said Ryan Mallough, senior director of provincial affairs for the CFIB in Ontario.
They are calling on Ottawa to extend both subsidies until November.
Currently, 57 per cent of Ontario businesses are fully open, 33 per cent are back to normal revenue levels.
“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. 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,” said CFIB President Dan Kelly.
In a statement to CTV News, the Ministry of Finance said the support measures will end at the end of September.
“The recent federal budget builds on this support with the new Canada Recovery Hiring Program; a more accessible Small Business Financing program, now including financing for operating expenses and start-up costs; a digital adoption program; the ability to immediately expense up to $1.5 million of capital investments; and a reduction in credit card transaction fees,” Kat Cuplinskas, press secretary with the ministry, said.
McKnight said the new program won’t be as helpful as the subsidies.
“We are still going through a pandemic, it isn’t over,” she said. “But it will be over for small businesses if we don’t have financial assistance.”