Canada’s pandemic supports for small businesses set to run out

VANCOUVER (NEWS 1130) — Many of Canada’s small businesses are watching the calendar and waiting for the federal government to announce if it will continue the financial support programs that have helped them survive during the COVID-19 pandemic.

Finance Minister Chrystia Freeland says the government is looking at extending supports for businesses for things like rent and wage subsidies, but that clock is ticking.

The federal government says this is the last Canada Emergency Wage Subsidy (CEWS) period, but there is a possibility that it will be extended until Nov. 20. However, without an official decision, many who rely on the financial boost to their bottom line are very worried.

CEWS pays the qualifying applicants a percentage of their employees’ pay subsidies based on their revenue loss. The government said it was created in hopes of saving jobs, and enabling re-hires to help with the return to normal.

So far, it has paid out $93 billion to 4.5 million applicants.

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Another program, the Canada Emergency Rent Subsidy (CERS), is also set to expire in the coming weeks.

That program allows Canadian businesses, non-profit organizations, or charities who have seen a drop in revenue during the COVID-19 pandemic to receive a subsidy to cover part of their commercial rent or property expenses.

However, the earlier deadline was put in place before the Delta variant began spreading across the country, leading to higher COVID-19 case counts and more restrictions. The return to normal is still very far away.

Dan Kelly with the Canadian Federation of Independent Business (CFIB) says the Oct. 23 deadline is looming.

“I’m hoping that the federal government will announce plans to extend the wage subsidy until at least the end of November. But after that they don’t even have the legislation in place,” Kelly said.

The CFIB estimates without the support, the small business sector could see 180,000 permanent closures.

With files from Mike Eppel