Province resumes aid for small businesses

Saskatchewan's government is renewing a program that provides up to $5,000 to small businesses hit hard by public health measures to prevent the spread of COVID-19.

But the Saskatchewan NDP said many businesses will be left in “the worst of both worlds” — unscathed by restrictions but walloped by steep declines in patronage and profit as customers stay away.

The Small Business Emergency Payment Program was first launched in April 2020, at the height of the spring lockdown that closed wide swaths of the provincial economy. It was renewed once but expired as the province reopened.

Now, with restrictions tightening in some sectors, the province is renewing the program for the month of December. Expected to cost about $8 million, it will provide up to 15 per cent of monthly sales revenues with a cap of $5,000.

Premier Scott Moe said it was worked out with industry and will complement federal support measures.

“We're trying to ensure that we are overlaying the Saskatchewan supports so nobody is missed here across the province in what is a very, very challenging time,” he said.

But some will be missed. The renewed program is open to Saskatchewan businesses with fewer than 500 employees that have faced a loss of revenue while “subject to a public health order that requires them to temporarily suspend or substantially curtail their operations.”

Todd Murray, owner of Salon Snax in downtown Regina, said his business isn't a direct victim of the public health orders.

It's a victim of government and corporate decisions that emptied out the office buildings he relied on for clients.

He doubts he would qualify for the renewed program, despite a 40 to 60 per cent drop in customers.

“Nobody has been told to not come to us because we're a personal service that hasn't been shut down,” said Murray. “But the fact that the traffic is not the same as it was because of the other things that are in place, we're like a lateral victim.”

The NDP argued that the government is repeating mistakes it made over the spring — and worse. Economy and jobs critic Aleana Young took issue with the requirement that businesses' operations must be “substantially curtailed” to qualify for the cash.

“The government public health orders aren't what's causing hardship for most Saskatchewan small businesses right now,” she said. “What's causing the hardship is that customers are staying home. What's causing the hardship is a lack of clarity from this government.”

But Moe argued that the program will cover a wide range of businesses, including many bars and restaurants.

“They are very seriously curtailed, in some cases even more curtailed than they would have been on a longer-term basis in the first response to COVID last spring,” said Moe.

To qualify, the impact of public health orders must go beyond what's applicable to most businesses. That could include gyms facing reduced occupancy, bars under curfews on liquor sales and performance venues subject to a 30-person capacity limit.

It could also include businesses that offer a specialized service to a sector that has been ordered to close through public health orders, like making trophies for sports tournaments.

The NDP has been calling for renewed business support for weeks, but Moe has stressed the need to consult with the business community. Yet the program revealed Thursday is roughly identical to what was in place in the spring.

But times have changed. Some small restaurant owners say the current restrictions leave them in a situation where they can't afford to stay open, but can't afford to close down either.

Saskatoon's Hearth Restaurant co-owner and co-chef Thayne Robstad said rising cases and restrictions have put his business down to under a quarter capacity.

“That's not exactly keeping the lights on.”

New rules demand three metres of distance between tables, and two metres if there's a barrier between them. Robstad says parts of his restaurant are only ten feet wide.

He plans to apply to the renewed government support program and appreciates the help. But he believes non-essential services should be ordered to close.

He says lower COVID-19 caseloads would mean looser restrictions and more customers who are willing to dine out. A mandated closure would also make him and other business owners eligible for the federal government's 25 per cent boost to the rent subsidy program.

“I understand there's a blow to the economy. I understand people are sick of being cooped up,” he said. “But right now it's going to be a thousands cuts. It's going to slowly drain us.”

The fact that the traffic is not the same as it was because of the other things in place, we're like a lateral victim.