Businesses shrug off latest COVID funding as ‘drop in the bucket’

One-time relief grants being offered by the province to businesses forced to shut down by the latest COVID-19 restrictions are being dismissed as wellmeaning but pointless gestures.

“While we’re, of course, grateful for any help, $10,000 is realistically one good day’s sales in December for a lot of venues,” said Quincy Leachman, manager of the Duke Saloon. “We’ve all just lost out on essentially all of our Christmas and New Year’s functions that would normally tide us through traditionally slow January and February. It’s a drop in a rapidly draining bucket at this point.”

Shawn Soole of Clive’s Classic Lounge agreed, noting there are venues that would easily make $10,000 in a night.

“And while there are costs involved with these events, $10,000 won’t cover some of these venues’ rent,” he said.

Ravi Kahlon, the minister of jobs, economic recovery and innovation, announced Thursday businesses, such as bars, fitness centres and event venues, will be able to apply for a grant ranging from $1,000 to $10,000.

“Financial support is on its way and we are committed to helping them through these very difficult times,” he said.

Kahlon said he knows businesses are worried. He stressed the closures are necessary to stem the spread of the Omicron variant of COVID-19.

Soole said that kind of line is getting hard to swallow from government ministers justifying bar closures when he sees malls and big-box stores operating without restriction.

“My biggest issue is the hospitality industry being a scapegoat yet again,” he said. “It’s too much. Where are passport scans, ID checks for big-box stores? You can go to Walmart or Mayfair with no gatekeepers, but restaurants that have been sanitizing everything for the last 18 months and doing all the rules have to be punished?

“[At the] Bay Centre and Mayfair and Uptown, people are just walking around without any constraints but the small 20-30seat restaurant has to bend over backwards, expend revenue and reduce covers,” he said.

The COVID-19 Closure Relief Grant being offered by the province is expected to cost $10 million and will follow a formula similar to the government’s Circuit Breaker grant in March. Businesses will be able to apply in January with applications accepted until the end of February.

The grant can be used to pay for expenses, such as employee wages, rent or utilities.

Monique Salez, owner of Raino Dance, said the provincial relief will help.

“At this point, anything helps,” she said, noting they wouldn’t be around without the relief offered, mainly by the federal government.

Salez said a combination of creative planning, programming, a dramatic move from a large studio, and the rent and wage subsidies kept them going.

“We’re not going to make it through if the government doesn’t come in and help,” she said.

Her business was in the midst of a planned two-week break when the provincial restrictions were put in place this week, which, she said, was something of a relief.

But she is worried about the loss of a key part of her business — the start of the new year and resolutions for people to get moving and stay moving as well as a new crop of beginners wanting to try it out.

“There’s a lot of people that want to come in and give it a try. That’s our base and that’s not happening now because everyone’s scared of our business. Because we’re people moving together,” she said.

“It’s so strange, dancing is illegal.”

Salez said they have managed to limp along with enough students to make it work but she said the future is very murky.

“Right now I’m just relieved. Relieved there is some support coming in because we’re not going to make it without support,” she said.

There were no additional provincial relief measures for workers.

“Obviously, there’s supports announced by the federal government to provide supports to workers that have been impacted,” Kahlon said. “We came in with the supports to support businesses where there was gaps in the federal announcement.”

Federal Finance Minister Chrystia Freeland said Wednesday the federal government would make changes to the Local Lockdown Program as well as the Canada Worker Lockdown Benefit.

With the adjustments, the worker lockdown benefit will apply to workers in regions where provincial or territorial governments have introduced capacity-limiting restrictions of 50 per cent or more. The benefit provides $300 a week to those eligible.

Kahlon said he understands businesses want the money right away, but the grant will take time to administer and the government will work as fast as possible to help.