Kitchener extends pandemic aid for property owners, businesses
KITCHENER — Kitchener council unanimously extended aid to businesses and property owners Monday, at an estimated total cost of $2 million.
“The more we support our small and medium-sized businesses, the quicker we’ll be able to climb out of this,” said Coun. Margaret Johnston.
The pandemic has dealt a serious blow to the economies of the region, as well as the province and the country, said Cory Bluhm, Kitchener’s executive director of economic development.
Since February, 6,400 more people have signed up for employment insurance, bringing the unemployment rate in Waterloo Region to 8.3 per cent, Bluhm said.
“That does not take into account those that have had their hours reduced, or their pay reduced,” he noted.
“We are by no means out of the woods yet. There will still be impacts down the road, particularly with small businesses that are trying their best to stay afloat.”
In March, Kitchener approved a $1-million aid package for April and May.
That package included measures such as waiving fees and interest on property taxes and utility bills; and not charging penalties for NSF cheques.
On Monday, council approved extending that aid — at a cost of another $1 million in lost revenue — until at least the end of June, as well as a slew of other measures that recognize businesses will face new costs, such as extra cleaning and limits on the number of customers, as they reopen.
“Initially it was important to respond quickly with broad measures to ensure that immediate relief was provided,” a report to council says. “This next level of support builds on earlier measures but also is more targeted to ensure that relief is provided to those who truly need it.”
The new measures include:
á Allowing residents and businesses to apply to extend due dates for property taxes by 60 days if they lost income because of the pandemic;
á Not disconnecting or collecting on late utility bills until at least September;
á Waiving sign permit fees until 2021 to help businesses promote themselves as the economy reopens;
á Deferring rent on city facilities for tenants who’ve suffered “significant” losses because of the pandemic.
About six per cent of property owners and 17 per cent of utility customers took advantage of the early measures — less than expected — and that’s a sign that although some residents and businesses are struggling,
“the majority of customers still have the ability to pay,” Bluhm said.
The city will also reach out through its small business centre to help businesses with resources, programming and webinars as they get set to reopen. At the end of May, economic development staff at the city will produce a recovery tool kit for all businesses in the region.
It will also offer help for small businesses that want to improve their online presence, and peer-to-peer networking so businesses can offer each other advice and support.
“The COVID-19 pandemic has had a severe economic impact on residents, businesses and the city,” the report warns. The aid may exhaust the city’s available cash, forcing the city to take “extraordinary measures” such as short-term loans so that the city has enough cash to pay its bills, officials warn.