$82B coronavirus emergency fund a welcome relief to Winnipeg's small businesses, employees

While some Winnipeg business owners welcome themassive $82-billion aid package announced Wednesday, it's anybody's guess whether it goesfar enough.

While much is uncertain, localrestaurateurSteffen Zinnsays he's relieved by a number of the measures announced by the federal government Wednesday, including a push to beef up employment insurance.

"In our case, wehad to close two shops and we had to lay off 20 people, and that was a really hard decision to make," said Zinn, who co-owns a few eateries, includingThe Red Ember Common and Wienerpeg both in The Forks Market, which is now entirely closed.

"We wanted to keep everyone on and operating as long as possible, but if we just don't have any customers there, and just to do the right thing for society, wehad to ultimately decide to close the restaurants."

The sweeping stimulus package, unveiled Wednesday by the federal government, includes $27 billion in direct help to Canadians and businesses, plus $55 billion in tax deferrals.

Zinn is pleased the federal government is waivingthe one-week waiting period to claim employment insurancebenefits.

For the bottom line, he also likes that he can defer corporate taxes.

"It's very reassuring, I suppose, in this time where everything else is uncertain," he said."It's niceto know that you have that as backup."

The supports are intended to helpCanadians pay for rent and groceries, andhelp businesses meettheir payrolls, all while stabilizingthe economy.

The emergency aid plan runs the gamut,from boosting Canada Child Benefit payments to a six-month reprieve on student loans to biweekly cheques for workers who are quarantined or sick with COVID-19, but do not qualify for employment insurance.

Other self-employed Manitobansare grateful for the measures as well.

A few days ago, Tricia Weidenbachervoluntarily closed up her massage therapy practice as fears surrounding the coronavirus ramped up.

She's encouraged by an emergency benefit that will funnel $5 billion toworkers like her. She also appreciates the changes to tax filing deadlines and a boost to theGST credit.

"We're optimistic for sure," saidWeidenbacher, who serves as executive director of the Massage Therapy Association of Manitoba.

"We'reglad that something was announced and we're glad that there was something in there that pertains to self-employed individuals."

Suddenly unemployed

But the federal support doesn't quell Weidenbacher's fears entirely.

She doesn't know when she'll start making money again.

"It'slike waiting foryour doctor to call you back with test results," she said. "You're just on pins and needlesuntil you get some concrete information."

Jonathan Alward, the Manitoba director ofprovincial affairs with the Canadian Federation of Independent Business, commends Ottawa forhelping people who are out of work, but says the government should prevent those layoffs from happening in the first place.

Alward said a 10 per cent wage subsidy for small businesses is appreciated, but it doesn't accomplish nearly as much as subsidies in someEuropean countries, wheregovernments are covering well over half of someone's salary.

Trudeau announces federal aid

5 years ago

Duration 1:32

Prime Minister Justin Trudeau detailed part of the federal aid that will be offered to Canadians who find themselves unable to work during the coronavirus outbreak.

"I think it'sreally important that we are focusing on keeping staff employed instead of focusing on everyone going on employment insurance."

CFIB's nationwide survey, released Tuesday,suggests a quarter of small businesseswouldn'tsurvive longer than a month if their business income was slashed in half.

The sudden closureof small businesses, many voluntarily, is unprecedented, said Chuck Davidson, president and CEO of the Manitoba Chambers of Commerce, and the amount of help those businesses need is a tall order.

He wouldn't castjudgmenton the federal stimulus package too quickly, but said"everylittle bit will help at this time."

University of Winnipeg economics professor Phil Cyrennesaidit is businesses in the service industry, and others that relyon public gatherings, that are particularly vulnerable to thecoronavirus.

Thankfully, some of these businessescan move their activities online, he said, but their digital revenue won't make up the shortfall.

"The employees should be taken care of throughemployment insurance," he said. "The owners of the business, those are the ones that are in jeopardy."