Yellowknife businesses have mixed reactions to the federal governmentSA国际影视传媒檚 wage subsidy program for companies negatively affected by the COVID-19 pandemic.
The program will offer 75 per cent of the wages for up to three months for businesses that have lost at least 30 per cent of their revenue, according to announcements from federal officials and government websites. The scheme would be retroactive to March 15.
Javaroma
Rami Kassem, owner of Javaroma Cafe, thinks itSA国际影视传媒檚 good that the government is doing something for small businesses, but his losses have been so big heSA国际影视传媒檚 not sure the program will help him.
SA国际影视传媒淚f youSA国际影视传媒檙e 30 per cent down then you can qualify, but weSA国际影视传媒檙e 95 per cent down,SA国际影视传媒 he told SA国际影视传媒.
SA国际影视传媒淲e laid off 10 people. We still have five people on the payroll where we canSA国际影视传媒檛 even afford to pay them. The 75 per cent subsidy means we would have to pay the 25 per cent but we canSA国际影视传媒檛 even pay them. So we might have to lay off even more people.
SA国际影视传媒淚f I have to lay them all off it will be no stress on the payroll. But ISA国际影视传媒檓 hoping to get some business this week so I can at least pay the rent.SA国际影视传媒
In KassemSA国际影视传媒檚 view, a better solution for businesses like his would include relief on other expenses to take off the financial pressure.
SA国际影视传媒(It would be good) if the federal government could work out something with the landlord and the city. The best scenario is to get a 100 per cent subsidy from the government and have some kind of deal with the landlord to give us some kind of break for rent. Then it could give us more time.SA国际影视传媒
Kassem fears his cafe could go bankrupt in three or four months but in the meantime he is pinning his hopes on the online ordering side of the business that he launched last Friday.
SA国际影视传媒淚SA国际影视传媒檓 making a few orders a day. It will help a bit but itSA国际影视传媒檚 not enough. I deliver them myself and we had a few orders so it wasn't so stressful. And I didn't hire any drivers. But will we make it next month? ISA国际影视传媒檓 not sure.SA国际影视传媒
Overlander Sports
Overlander Sports faces a very similar situation as Javaroma. It has lost about 75 per cent of its business and the dilemma has pushed the sporting goods store to go online for more sales.
SA国际影视传媒淎 lot of small businesses like us are going to have to get really innovative to pay our suppliers, our rent and our taxes,SA国际影视传媒 said co-owner Sandra Stirling.
SA国际影视传媒淲eSA国际影视传媒檝e had a website for years but itSA国际影视传媒檚 been just to show people what we have in the store. But now weSA国际影视传媒檙e getting it running so we can actually sell things through it. Over the next few weeks weSA国际影视传媒檒l be putting things up online that we can sell in April and May online. For us itSA国际影视传媒檚 a big thing because weSA国际影视传媒檝e never done it before. WeSA国际影视传媒檝e been bricks and mortar until now.SA国际影视传媒
The business downturn forced Overlander to layoff eight people. Including herself and her husband Bill the store now has six staff members and theySA国际影视传媒檙e still doing some sales over the phone, through email and over Facebook and Instagram.
The subsidy program might help them re-hire one staff member, but Stirling said she still has to sort out the details with her accountants.
BullockSA国际影视传媒檚 Bistro
For the co-owner of BullockSA国际影视传媒檚 Bistro, the subsidy plan is a good idea and could give a boost to the famous fish and chip restaurant that closed its doors on March 17 and laid off all of its staff.
Jo-Ann Martin couldnSA国际影视传媒檛 say precisely how much revenue BullockSA国际影视传媒檚 has lost since it shut down but said it hasnSA国际影视传媒檛 been making any money since March 17 and was losing about $1,000 a day in early March.
SA国际影视传媒(The subsidy program is) a fantastic option to be able to keep employees on and pay 75 per cent of their wages,SA国际影视传媒 said Martin.
SA国际影视传媒淏ut ... We don't know yet about the source deductions like Employment Insurance (EI) and taxes. So will it be 75 per cent or 60 per cent once all the taxes are deducted? We don't know yet. So the company might still be on the hook for the deductions.SA国际影视传媒
She was still trying to figure out which would be better for her staff: EI or the wage subsidy.
SA国际影视传媒淲hichever would offer them more. It depends on what they would be willing to do. Some of them aren't confident switching from EI to another program. And a few wonSA国际影视传媒檛 qualify for EI.SA国际影视传媒
And as good as the program might be, Martin stressed that itSA国际影视传媒檚 still early days.
SA国际影视传媒淚t'll be another week or so before the programs come out from the government, and then there's a two-week period before it's approved so it could be into the third week of April until we get it. That for us will be a month without income. It's a challenge.SA国际影视传媒
Sushi North, Ja-pain Bakery
Seiji Suzuki, owner of Sushi North and Ja-pain Bakery, said the 75 per cent subsidy SA国际影视传媒渟ounds greatSA国际影视传媒 but echoed other business ownersSA国际影视传媒 concerns that it still seems vague.
SA国际影视传媒淭he (government) website about the program isn't very clear. But it looks really good. I hope we can apply.SA国际影视传媒
His two businesses have lost between 60 and 75 per cent of their activity since the pandemic hit but he doesnSA国际影视传媒檛 plan to lay anyone off.