Uncertain future for new, small business owners

“We still have enough income coming in to [stay] open and to keep staffing at a minimum and that’s all I’m really asking for at this time,” she said. “While there isn’t a lot of income coming in, it’s been enough to keep us going.”

Social distancing requirements means Eatery staff are keeping a distance by using modernized methods of payment which has kept the business running with take-out and delivery services.

“People will call or text their order, and [are] either e-transferring or paying over the phone,” she said. “We’ll text them or call when we’re leaving the Eatery so our customers keep an eye out and we’ll leave their meal on their doorstep.”

Dunsing has been in business just under two years and said she’s concerned she may not qualify for funding under the federal government’s COVID-19 Economic Response Plan (ERP).

“Loan programs made available, you have to be in business for two years and I won’t even qualify for so many for them and that’s really opened my eyes,” she said. “The wage subsidy will help me because I think I’ll need 30 per cent profit loss and I’m sitting at about 40 per cent, so that can help me.”

There isn’t a lot of specific information yet about how the subsidies will work and how those accessing them will be held accountable.

With multiple layoffs in the community, the small business owner is worried about how long people in the community will be able to afford dining at restaurants.

Dunsing shares frustration with others who own businesses such as salons and fitness centers and said government programs may not help those who can’t open their doors and pay staff.

“If I do have to shut my doors or sales dip lower than they already are, I think I’d be in a tough spot in four to six weeks,” she said.

Dunsing expressed immense gratitude to the local community who have supported her take-out option to date.

“Our local community, Green Lake, Goodsoil, we’ve been spoiled the last two weeks,” she said. “I couldn’t imagine going through this crazy time in anywhere but Meadow Lake and having the support we have. That’s been huge.”

Federal Response

The federal government announced earlier this week a far bigger wage subsidy of 75 per cent for affected businesses, compared to the 10 per cent announced initially.

Eligible employers (individuals – excluding trusts, certain partnerships, non-profit organization, registered charity, or Canadian-controlled private corporation eligible for the small business deduction) who pay salary, wages, or taxable benefits to employees, between March 18, 2020 and June 19, 2020, can reduce payroll remittances of federal, provincial, or territorial income tax by the amount of the subsidy. This measure is only applicable to remittances made to the CRA.

Companies who qualify for the Canada Emergency Wage Subsidy will be able to get 75 per cent of each employee’s salary covered, on the first $58,700 earned this year,” Prime Minister Justin Trudeau said. “This amounts to a maximum $847 per week. The program will be backdated to March 15.”

Also, the new Canada Emergency Business Account will provide interest-free loans of up to $40,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.

To qualify, organizations will need to demonstrate they paid between $50,000 to $1 million in total payroll in 2019.

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nicole.reis@jpbg.ca

Twitter: @nicolereis7722

by Nicole Reis

Uncertain future for new, small business owners

Federal Response

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