Some Ottawa businesses welcome, some criticize new government support - Action News
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Ottawa

Some Ottawa businesses welcome, some criticize new government support

Manysmall businesses are welcomingthe new federal and provincial support programs announced Wednesday, but some say the programsaren't inclusive enough,failto provide adequatesupport or are unfairly enforced.

Capacity restrictions came at crucial time of year for many businesses

New federal and provincial support programs aim to help businesses affected by 50 per cent capacity limits in Ontario. (Justin Tang/The Canadian Press)

Many small businesses are welcomingthe new federal and provincial support programs announced Wednesday, but others say the programsaren't inclusive enough,failto provide adequatesupport or are unfairly enforced.

CBC Ottawaspoke with a number of local businesses affected by50per cent capacity restrictions that came into effect Sunday. A rangeof businesses,including restaurants, gyms and malls, were affected.

"Obviously, it's not the ideal situation in general, but of course it will help our business,"said Claudia Hernndez, whose family owns the traditional Mexican restaurant Casa Mexico in Ottawa. "It's a give and take situation at this moment."

The federal government announced in a news conference Wednesdayit is expanding access to pandemic financial supports that will apply retroactively from Dec. 19 until Feb. 12, 2022.

Thegovernment revised what it considers a "lockdown" to include areas whereindoor capacity has been restrictedby 50 per cent or more.

Claudia Hernndez, pictured alongside her parents Marco Hernndez and Silvia Gomez, says December is an important time of year for the restaurant Casa Mexico. (Submitted by Claudia Hernandez)

Inthose regions, employeeswho have lost more than half their income will be eligible for the $300-per-week Canada Worker Lockdown Benefit, and employers who have faced revenue declines of at least 25 per cent can apply for wage subsidies from theLocal Lockdown Program.

The Ontario government also announced supports for businessesWednesday, covering up to 50 per cent of the property taxes and energy costs of eligible businesses.

Tough time of year

Hernndez said the restrictions and nowfinancial supports came ata crucialtime of year for her restaurant.

"The holidays are really important," she said. "We were expecting throughout the whole pandemic December to be a good month. With the new restrictions, we have to adjust everything."

Michael Wood, an Ottawa-based business advocate, said restaurants he spoke with are dealing with a10 to one rate of cancellations to new reservations.

"Many restaurant owners will tell you the third week of December is one of the busiest and most profitable of the year," Wood said.

He added the followingthree months of the yearare"trying" times for retail and hospitality, meaning capacity restrictions are hitting retail and hospitality businesses during alucrativeperiod.

"These capacity restrictions comings in at this time, make it very, very difficult for small businesses," he said.

Changes toprogram eligibility, loans called for

Ontario NDP finance criticKatherine Fife called for amoratorium on evictions as well asdirect grants for small businesses in a press release Wednesday.

Wood said he would like to see the supports coverbusinessesstarted during the pandemic, who currently do not qualify for government programs.

He added somebusinesses he spoke with hoped the federal government would either extend the deadline forrepaying theCanada Emergency Business Accountloan program or turn itinto a grant that doesnot require repayment.

Not all businessownersagreed.

Everett Sloan, owner of Crossfit Bytown, said the only government support he took through the pandemicwas the federal rent subsidyduring early lockdowns.

He said he doesn't support the government turning loans into grants, because it would be unfair tobusinesses like histhat chose not totake the money in the first place.

"It's going to be very different for each business," Sloan said. "If you're borrowing money out of honour, you've got to pay it back."

Wood said every "little bit" of support helps businessesstruggling to make those payments.

"We're always grateful," he said."However, more could also be needed for some small businesses to survive."