Horner vows to act fast to bolster small businesses
Banks ordered to firm up recovery plans
Almost five weeks after flood waters swamped parts of southern Alberta, the province’s finance minister is on the cusp of announcing a “fairly large commitment” to more than 1,000 small businesses.
Doug Horner met with bank representatives Monday and has given them until Tuesday noon to firm up plans for assisting entrepreneurs with their flood-recovery efforts. Details are expected to come soon after.
For now, it remains unclear what Horner and the Alberta Treasury Board will do to help small business owners back on their feet.
However, Horner said financial support will be rolled out quickly.
“We want to be fast,” he said in an interview. “We want to turn this thing around in days … in terms of getting dollars into the hands of business owners.”
The minister declined to comment on the conditions of financial aid, specific dollar-figures, or even how he defines a small business until Tuesday’s announcement.
“To throw numbers around would be a little irresponsible at this point,” he said.
Richard Truscott, Alberta director for the Canadian Federation of Independent Business, estimated somewhere between 1,000 and 1,500 small business have been affected by the floods in southern parts of the province, mainly in High River and Calgary.
Provincial estimates also suggest another 800 not-forprofit agencies, First Nations businesses and agricultural enterprises were affected by June’s historic deluge.
Some enterprises have been closed for more than a month and need quick access to financing to continue operations.
Truscott is hoping the province — along with financial institutions — provide some financial flexibility to affected businesses, whether through favourable terms on new loans, deferring payments or extending deadlines, waiving late penalties or simply increasing credit limits.
“The No. 1 thing we’d like to hear is some immediate arrangements for bridge financing for small businesses,” he said in an interview. “There’s plenty of entrepreneurs who are in some deep trouble.
“How soon can the relief funding start to flow? That’s the critical question … They really need to get things rolling on the commercial side for small business.”
In High River, Jill Patterson can’t wait to get her business back to running at full steam.
Patterson, who owns a bridal and formal wear store in the town’s hard-hit core, estimates the floods cost her business $60,000 in damages and lost sales. With mounting losses and without a place to stash pre-ordered fall inventory, her business needs two things to survive.
“We need a space first,” she said. “The very next thing we need is money.”
While she’s checked out retail space in Okotoks, the rents are pricier and she ultimately hopes to rebuild in the floodravaged town.
“We want to stay in High River and support High River if we possibly can,” she said, noting several other owners have expressed similar sentiments.
Meanwhile, Truscott said many small businesses have lost their employees due to the shutdown, have limited access to insurance and need help to restart.
Research from past floods in Manitoba and hurricanes in the southeastern U.S. indicate as many as half of affected businesses don’t survive such freak events because of the huge financial setback.
“What we’re really for is for governments to have some role in providing some level of financial assistance,” he said.
“But whatever is done, has to be done within the context of fiscal responsibility and ensuring that this isn’t going to break the bank.”
Small businesses contribute about $140 billion a year to Alberta’s GDP, according to the province.