Minister of Small Business and Export Promotion Mary Ng speaks during an announcement at a grocery store in Ottawa. (File photo by THE CANADIAN PRESS)

Minister of Small Business and Export Promotion Mary Ng speaks during an announcement at a grocery store in Ottawa. (File photo by THE CANADIAN PRESS)

September rent due as small businesses face holes in government support

Liberals announced extend Canada Emergency Business Account

TORONTO — With rent coming due for another month, Ginger Robertson’s daily walk through Toronto’s Danforth neighbourhood is increasingly filled with empty storefronts.

Robertson says that government programs have so far stopped short of helping her pay the bills for two restaurants she co-owns, The Edmund Burke and Off The Hook. While both venues have reopened, they are running at about half capacity with minimal wage subsidies and loans, meaning today’s rent payment will come from savings once again.

“We were closed for three months … we had to pay insurance, rent, hydro, gas. Those things are still being used and we (weren’t) open. How do you expect us to pay for that?” says Robertson.

On Monday, the Liberals announced an extension of the Canada Emergency Business Account until the end of October, as well as plans to expand eligibility.

But Robertson says more of these government programs need to expand eligibility or allow appeals processes for those who have been denied help if the government wants small businesses to recover.

Robertson’s second restaurant, which was purchased at the beginning of March, hasn’t qualified for some of the existing government programs because of decisions made by the previous owner. While Robertson has some wage subsidies and a loan, she doesn’t think she’ll be able to take advantage of the emergency loan forgiveness program, due to eligibility requirements. Meanwhile, her landlord for both venues will not apply for the Canada Emergency Commercial Rent Assistance program.

The parliamentary budget watchdog said on Monday that CECRA will cost just under $1 billion this fiscal year. Robertson said more of that money should be paid out to those who need it. She echoed criticisms by the Canadian Federation of Independent Business, which said last month that the program needs to be replaced with a version that allows tenants to apply for relief directly.

“The general public thinks we are being helped with the announcement of all these measures,” she said, noting that almost $3 billion was budgeted for the program.

Up the road, Lori Parker of Treasure Island Toys said the government’s wage subsidy program has helped “significantly” with managing expenses, but she, too, was unable to qualify for the rent relief program.

With a lack of kids’ birthday parties and uncertainty around the usually busy seasons of back-to-school and Halloween, Parker is hoping that locals and online buyers can see the store through until Christmas.

“Paying rent is one of our largest priorities. We have managed expenses in other ways, as far as tightening our receivables … looking at our hours of in-store operations and keeping costs as low as possible,” said Parker.

Charles Fajgenbaum, owner of nearby shop Fermentations, said he doesn’t have the option to just close up shop and walk away given the terms of his lease, and the long-term nature of his business. As his contingency plans stretch thin, he is feeling more and more pressure to retire, but says he doesn’t want to let down his suppliers and staff.

“The question really becomes: How long do I want to pay everybody else — but not me?” he says.

Eventually, Fajgenbaum’s landlord did apply to the rent relief program and was successful, says Fajgenbaum. But with his full-time staffers scheduled to return this month and rent coming due, he said he can’t continue on working “25-hours a day” forever, all while trying to be a smiling face for beleaguered clients.

“My landlord, his business is renting properties. My business is being a facility for people to make wine or beer. I can’t fault him for wanting to try to run his business as I’m trying the best I can to run mine,” says Fajgenbaum.

“I don’t think anybody is satisfied with where we are (on the rent relief program), but quite frankly, I’m not sure what can or should be done. I run a business, but I also pay taxes and I’m a citizen, and I know there’s not an absolute bottomless pit of money to keep on throwing at situations, hoping that something eventually sticks and works. But on the other hand, some version of keeping the economy running has to be out there.”

This report by The Canadian Press was first published Sept. 1, 2020.

CoronavirusSmall Business

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Blank Unemployment Benefits form
Red Deer unemployment rate rises to 10.6 per cent

Red Deer’s unemployment rate rose slightly during the month of April. The… Continue reading

Starting Monday, golf courses across the province will be limited to their household or for those who live alone, their two close contacts. (Photo by BYRON HACKETT/Advocate Staff)
Golf in Alberta limited to household or close contacts starting Monday

Golf courses will have new COVID-19 protocols to follow next week. Starting… Continue reading

Lacombe-Ponoka MLA Ron Orr
MLA Ron Orr pleads with Central Albertans to follow COVID-19 rules

Lacombe-Ponoka MLA Ron Orr is changing his tune on COVID-19. Orr originally… Continue reading

People line up at a COVID-19 vaccination centre, Friday, April 23, 2021 in Deux-Montagnes, Que. Canada's two biggest provinces are continuing to ramp up COVID-19 vaccinations as they report lower hospitalization figures.THE CANADIAN PRESS/Ryan Remiorz
COVID-19 rapid tests going to more businesses, Alberta truckers get shots in Montana

Ottawa is making more rapid COVID-19 tests available to small and medium… Continue reading

FILE - A firefighter wears a mask as he drives his truck. THE CANADIAN PRESS/Jonathan Hayward, File
Flames rip through Edmonton-area seniors complex, but no fatalities

ST. ALBERT, Alta. — Fire has destroyed part of a retirement complex… Continue reading

Alberta Health Services locked the Whistle Stop Cafe in Mirror on Wednesday morning after owner Christopher Scott refused to comply with health orders. (Photo by Paul Cowley/Advocate staff)
UPDATED: AHS shuts down Whistle Stop Cafe for defying health orders

Justice minister promises to get tough with those ignoring public health orders

jobs - T - 3-6-2020
Job search: 10 ways to make your LinkedIn profile stand out in 2021

In 2021 successful job hunting requires having a LinkedIn profile that’s current… Continue reading

Max Parrot of Canada competes in the men’s snowboard big air final at the 2018 Winter Olympic Games in Pyeongchang, South Korea, Saturday, Feb. 24, 2018. Parrot has won the Comeback of the Year honour at the Laureus World Sports Awards. THE CANADIAN PRESS/Jonathan Hayward
Canadian snowboarder Max Parrot wins Laureus World Sports Award for comeback

Parrot beat out former Washington Football Team quarterback Alex Smith

This Nov. 22, 2015 file photo shows Justin Bieber at the American Music Awards in Los Angeles. Bieber’s world tour is facing another setback as the COVID-19 pandemic rages on. The Stratford, Ont.-raised pop singer is pushing dozens of tour dates including stops in three Canadian cities.	THE CANADIAN PRESS/AP-Photo by Jordan Strauss/Invision/AP, File
Justin Bieber postpones Canadian summer tour dates until 2022

52-date world tour will now kick off Feb. 18, 2022

LtE bug
Letter: Security company can help with shelter

Why don’t we leave Safe Harbour temporary shelter where it is and… Continue reading

LtE bug
Letter: Good job on K-6 curriculum

Many are questioning the quality of the draft K-6 curriculum. It amazes… Continue reading

Treena Mielke
COVID becomes all too real when someone you love is ‘positive’

The third wave of the pandemic is hitting us hard. It is… Continue reading

Most Read