People wear masks as they walk past closed storefronts downtown as COVID-19 continues to take an economic toll Thursday, March 18, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz

People wear masks as they walk past closed storefronts downtown as COVID-19 continues to take an economic toll Thursday, March 18, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz

Hardest hit businesses call for extension of federal wage, rent subsidies

Just 12 per cent said they have sufficient internal resources to stay afloat

Canadian businesses hardest hit by the COVID-19 pandemic are calling on the federal government to extend emergency relief programs beyond the current deadline of June 5.

The Coalition of Hardest Hit Businesses is calling for the federal wage subsidy and the federal rent subsidy programs to be continued until the end of the year.

The coalition, which represents hotel, tourism, arts, culture and hospitality industries, is backing up its call with the results of a survey it conducted among its members earlier this month.

Almost 6,000 businesses responded to the survey and fully 60 per cent of them said they’ll go under without sustained access to federal support programs.

Only 14 per cent said they have access to sufficient financing from regular sources to survive.

And just 12 per cent said they have sufficient internal resources to stay afloat.

“Our businesses were the first hit by the pandemic, the hardest hit by the closures and will be the last to recover,” Beth Potter, president of the Tourism Industry Association of Canada, said in a statement issued by the coalition.

“With extended support, we can thrive and survive. Without it, Canada’s tourism, culture and hospitality industries will be devastated for a generation.

The coalition says its member businesses employed more than two million Canadians before the pandemic hit a year ago. They are primarily small- and medium-sized businesses whose employees are predominantly young, female, Indigenous and new Canadians — the populations hardest hit by the pandemic.

Susie Grynol, president of the Hotel Association of Canada, said the wage and rent subsidies are “a lifeline” for businesses whose financial recovery has been slowed by continuing public health measures, including ongoing bans on mass gatherings.

Continuation of the programs “would be the difference between a vibrant tourism and cultural industry in Canada and the loss of these critical regional employers and a far slower return to full employment,” Grynol said in the statement.

ALSO READ: Waits for bike repairs stretch months amid Canada parts shortage due to COVID

The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Coronaviruseconomy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Eckville Town Office. (File Photo)
Town of Eckville planning pathway around Manor and Villa

Plans for the pathway has changed slightly following feedback from the community

Madelyn Boyko poses along with a number of the bath bombs she makes with her mom, Jessica Boyko. Madelyn says she enjoys making the bath bombs with her mom as it is a special time for just the two of them. (Photo Submitted)
5-year-old Sylvan Lake girl selling bath bombs in support of younger brother

Madelyn Boyko is selling bath bombs for CdLS research in honour of her younger brother

Conservative leader Erin O’Toole holds a press conference on Parliament Hill in Ottawa on Tuesday, April 6, 2020. Top Tory leaders of past and present will speak with supporters today about what a conservative economic recovery from COVID-19 could look like. THE CANADIAN PRESS/Sean Kilpatrick
O’Toole to vote against Conservative MP’s private bill on ‘sex-selective abortion’

Erin O’Toole said he supports a woman’s right to choose and will personally vote against the private member’s bill

(Government of Canada)
Liberal MP caught stark naked during House of Commons video conference

William Amos, in Quebec, appeared on the screens of his fellow members of Parliament completely naked

Health Canada headquarters in Ottawa. (Sean Kilpatrick/The Canadian Press)
Health Canada releases guidelines for reducing COVID-19 transmission at home

Improve indoor air quality by opening up your windows and doors, among the encouraged ventilation measures

Alberta Premier Jason Kenney updates media on measures taken to help with COVID-19, in Edmonton on Friday, March 20, 2020. Alberta is set to join three other provinces in exploring the feasibility of small modular reactors as a clean energy option. THE CANADIAN PRESS/Jason Franson
Four provinces to sign memorandum of understanding to explore small nuclear reactors

Alberta government said in August that it would enter into the agreement to help diversify its energy sector

Sharis Carr, a nurse at the Aaron E. Henry Community Health Service Center in Clarksdale, Miss., holds a box containing doses of the Johnson & Johnson COVID-19 vaccine Wednesday, April 7, 2021. The U.S. is recommending a “pause” in using the single-dose Johnson & Johnson COVID-19 vaccine to investigate reports of potentially dangerous blood clots. (AP Photo/Rogelio V. Solis)
EXPLAINER: What’s known about COVID vaccines and rare clots

These are not typical blood clots – they’re weird in two ways

File photo
City of Wetaskiwin awarded $5.1 million grant for additional RCMP officers

10 Additional RCMP officers to serve the City of Wetaskiwin as a result of the grant.

Titanic was the largest and most luxurious ship in the world. Photo provided and colourized by Jiri Ferdinand.
QUIZ: How much do you know about the world’s most famous shipwreck?

Titanic sank 109 years ago today, after hitting an iceberg

A health-care worker holds up a vial of the AstraZeneca Covishield vaccine at a COVID-19 vaccination clinic in Montreal, Thursday, March 18, 2021. THE CANADIAN PRESS/Paul Chiasson
PHAC receives first report of blood clot linked to AstraZeneca

The federal agency says the person is now recovering at home

A real estate sign is pictured in Vancouver, B.C. THE CANADIAN PRESS Jonathan Hayward
1 in 3 young Canadians have given up on owning a home: poll

Data released Monday says 36% of adults younger than 40 have given up on home ownership entirely

Most Read