Dear Ministers,
We are writing on behalf of the Tourism Industry Association of Ontario (TIAO), the Ontario Businesses Improvement Area Association (OBIAA) and the Economic Developers Council of Ontario (EDCO). In these unprecedented times, we have partnered to speak on behalf of our members and the industries that we represent, to speak up for Main Street and for small and medium sized enterprises in every corner
of our province.
Collectively, we represent hundreds of thousands of businesses, millions of jobs and the economic engines that drive the Ontario and Canadian economy. See below.
We find ourselves at a critical crossroads, when the previous need for urgent implementation of financial aid has been superseded by a genuine threat to lose the industries that make up our main streets, our tourism and economic development sectors and the economic stability and future of our province.
Temporary closures are steadily turning permanent, capital reserves are being depleted, credit card payments are being missed and many are at the mercy of their landlords whilst they wait for the fine detail of government support to eventually emerge.
This is a large group of resilient and resourceful industries that are looking to their governments for hope and a hand up. Those that can survive the immediacy will find themselves in insurmountable debt that will act as a permanent anchor on growth and prevent hiring’s during any economic recovery.
The window of opportunity to provide meaningful help is now. We have identified three practical steps that provincial and federal governments can take to counter these unparalleled threats to businesses and jobs.
Commercial Rent Relief. We ask the Government of Ontario to work with all levels of government, landlords and tenants towards commercial rent relief framework for Small, Medium Enterprises (SMEs) that are closed due to COVID 19. The necessary requirements placed on all non-essential businesses to close during COVID-19 mean that many SMEs are unable to pay their commercial rents.
Ontario will rely heavily on the economic drive of these businesses to restart the economy, once sanctions have been lifted. Commercial rent relief solution is enacted. It would ensure SME’s are not saddled with unmanageable debts. Understanding that many property owners are also small businesses, perhaps the Government can provide funding to cover a percentage of rent.
Interest Relief on Debt. We ask the Government of Canada to mandate that banks, credit card companies and credit unions to implement an interest relief on mortgage deferrals, credit card payments and loans. Whilst we recognize the steps that have been taken by the banks to cut interest rates on credit cards, we strongly believe more comprehensive action must be taken to give SME’s a fighting chance of reopening and rehiring employees free of overwhelming debt.
Currently, Section 28 of the Ontario’s Planning Act provides powers to municipalities to develop financial incentives (grants and loans) to private property owners to undertake improvement projects. If the guidelines were to be enhanced to allow municipalities to have discretion to assist local property owners with expenses (ie rent relief to tenants), it would provide direct assistance at a municipal level.
Similarly, Community Development Funds could be expanded to allow for “online” façade development vs the traditional projects. Both of these initiatives would allow alternative assistance methods for our communities to assist local businesses who have approached local governments for help.
Financial Aid, Not Debt Deferral. We ask that all levels of government, prioritize access to financial aid including grants rather than debt deferral measures to ensure that capital expenditures, and all incurred costs during COVID 19 closures, are covered. This will ensure SMEs do not take on insurmountable debt to cover operational and capital costs, which would render businesses unable to re-open. By reviewing and enhancing these programs it may save some businesses and put them on a firm footing as we build towards recovery. EDCO, OBIAA and TIAO understand that recovery will not happen overnight. We feel we would have value at the tables where recovery is being discussed.
Yours sincerely,
Heather Lalonde, Economic Developers Council of Ontario; Kay Matthews, Ontario BIA Association; and Beth Potter, Tourism Industry Association of Ontario
Editor’s Note: The letter was sent to Minister Mary NG, Minister of Small Business, Export Promotion and International Trade, Government of Canada; Minister Melanie Joly, Minister of Economic Development and Official Languages, Government of Canada; Bill Morneau, Minister of Finance, Government of Canada; Minister Vic Fedeli, Ministry of Economic Development, Job Creation and Trade, Government of Ontario; Minister Prabmeet Sarkaria, Associate Minister for Small Business and Red Tape Reduction, Ministry of Economic Development, Job Creation and Trade, Government of Ontario; Minister MacLeod, Ministry of Heritage, Sport, Tourism and Culture Industries, Government of Ontario; Minister Ernie Hardeman, Ministry of Agriculture, Food and Rural Affairs, Government of Ontario; and Rod Philips, Minister of Finance, Government of Ontario.
