Fredericton Businesses Say $5,000 Grant Isn’t Enough To Help Through Tough Times
FREDERICTON – Local business owners say that while the $5,000 grant put forward by the provincial government is critical and helpful, it is not enough to sustain their operations.
The Opportunities NB grant of up to $5,000 is available for small and medium businesses who have been subject to “orange” or “red” level restrictions for at least one week between October 10, 2020, and March 31, 2021.
Krista Ross, CEO of the Fredericton Chamber of Commerce, says some sectors are getting hit harder than others and chamber members are saying the $5,000 grant, while appreciated, will not have a significant impact on their operations or save jobs.
“Take a couple of average examples: some mid-size food establishments are experiencing tens of thousands of dollars per week in lost revenue whether under orange or red restriction levels,” said Ross. “Meanwhile, salons with a half dozen employees tell us they are losing revenue of upwards of $10,000 in a week [when] they are closed due to a red restriction level and that their revenues are soft in orange restrictions as well.”
Cara Hazelton, the owner of Precision Pilates, agrees that the program does not adequately help small businesses.
“I think it’s too little too late in terms of provincial help,” said Hazelton. “We’re almost a year into this and this is the first thing that they’ve come up with.”
As a fitness centre, Precision Pilates has been subject to closures due to “orange” and “red” restrictions.
“The piece that seems to be missing on provincial issues when it comes to business funding, or even creating how the phases have worked for businesses, is that the government and its staff make decisions without including industry experts,” said Hazelton. “If you want to know how to help small businesses, perhaps you should have meetings with small business owners to see what we think.”
The “orange” and “red” phases of recovery have led to even more challenges for businesses trying to navigate the already difficult early months of the year.
“$5,000 is helpful, but it isn’t if we’re going to constantly be living in red or orange,” said Zach Atkinson, owner of The Cap. “If we stay in orange for another two weeks, it starts to get really tricky.”
Atkinson says that the Cap has kept their retail space open for selling records and merchandise, but has kept Wilser’s Room, their bar and dining area, closed since the beginning of January when the entire province shifted to Orange.
RELATED: Sales At N.B. Restaurants Drop $255 Million In 2020
“On-site sales have really come to a grinding halt,” said Atkinson. “But, we are still selling some through online deliveries and some pick-ups.”
Atkinson and other business owners have observed that although businesses are able to operate during the “orange” phase of recovery, the public has kept their distance.
“The public’s mentality is to play safe and not go out, but you still have staff and in some instances the dining room is open,” said Atkinson. “In some cases, it’s more costly for a restaurant to be open in orange if they choose to have their dining room open.”
Like many business owners, Lauralee McCloskey, owner of Buttercream Dreams, has followed public health protocols by limiting visitors to two household bubbles at a time in the store during the “orange” phase and has offered curbside pickup, but business has remained slow.
“As soon as people hear the word ‘orange,’ they immediately think they have to stay home and they’re not allowed to come to the shop anymore, I guess,” said McCloskey.
McCloskey says that she has reduced staff to just her and another chef while in the Orange phase of recovery.
“We were prepared for a busy weekend and we did like less than 75 percent of our normal sales on the Friday and Saturday,” said McCloskey, reflecting on when the Fredericton area moved to Orange in November 2020.
While all three business owners agree that it’s necessary for public health to restrict businesses in the name of safety, Hazelton believes the systems in place to help businesses fall short.
“I understand that the government wants to put us in red to keep us safe and I agree with it 100 percent,” said Hazelton. “But when it goes for such a short period of time, they’re hurting employees.”
Hazelton says that the one-week waiting period for Employment Insurance, the same length of the most recent “red” phase in the Fredericton area, has meant that restaurant, salon, hairstylists, and fitness employees have been unable to receive any income for their missed week of work.
“There’s a lot of administrative work in having a one-week shutdown,” said Hazelton. “We need to reorganize staff hours and client hours and all of that for a week. In restaurants, they end up throwing out food and buy it again when they reopen.”
Atkinson says it is crucial to continue to shop local as businesses continue through the uncertainty of the pandemic.
“It’s a challenging time for any bar, restaurant, any type of retail, really, I think to see success this time of year,” said Atkinson. “Then add the pandemic on it and it creates more barriers. So when people are thinking about where they’re going to spend the money, always consider local first.”
Liam Floyd is a reporter for Huddle. Send him story suggestions: [email protected].