Wage Subsidy Program Key To COVID - 19 Turn Around

Although local businesses are now out of woods yet, a key government subsidy has been a major spark to helping re-igniting the local business community.

“If businesses were to tell you probably the best program out there they have from the government it’s the wage subsidy. It’s been absolutely awesome for them it’s allowed them to hire staff back,” Rob Clark CEO of the Moose Jaw and District Chamber of Commerce said.

Under the Canada Emergency Wage Subsidy (CEWS) employers were eligible to receive 75 percent of employee wages retroactively from March 15 - August 29, 2020.

“It is not just good for the businesses that qualify but it also helps keeps employees off of Employment Insurance,” Clark said

Under changes to CEWS businesses who did not previously qualify will qualify if their revenue has dropped by less than 30 percent.

Additionally certain industries adversely effected will see an additional 25 percent wage subsidy paid.

The revised program has been extended from the end of August until December 31, 2020.

After months of few, if any people, Downtown the business section is starting to come alive with activity - MJ Independent photo

“Getting a wage subsidy of 75 percent for employees has been key for many businesses. For some businesses without the subsidy may not have re-opened,” he said.

“Businesses I talk to and use it tell me it has been a lifesaver.”

The major thing Clark said he has noticed during recent visits over the past week with local businesses is an almost complete reversal in business owner's moods.

“I wouldn't call it a 360 (degree reversal) more like a 340 (degree of reversal) from when the pandemic impacted the business community…I just spent five hours Downtown talking to businesses and the general consensus is good,” Clark said.

“The first phone calls we received from March to April were full of fear and anxiety. But now it is optimistic as they are back to business and they are back doing what they love to do,” he said.

Clark admits though the tourist numbers are not what they once were but there is still activity. Activity which seemed to take off about July 1st.

“This is like getting a shot of adrenalin for a lot of business and the Chamber (of Commerce) could not be happier for them.”

Although there are parking spots to be had Downtown the increased activity has made it harder to find a parking spot - MJ Independent photo

Although there had been a few business closures due to the COVID - 19 pandemic the numbers were not as large as predicted, he said.

Early predictions by economists said 30 percent of small businesses could close permanently due to the effects COVID - 19 would have on businesses.

Clark said there were lessons learned during the business closures or businesses adapting to the pandemic and that is every business needs an on-line presence.

“One thing that comes out of this is businesses realize they need some help with social media. Businesses need not just a Facebook presence but also a regular web-site which are updated regularly,” he said. “They are starting to adapt they are going to have to do ot.”

Clark sited how many businesses were able to connect to clientele during the lockdown and maintain some type of business.

“If you do not have an on-line presence it really hurts your chance of success.”