Coronavirus crisis: Vaughan businesses ‘still in peril’ even after Trudeau pledges $1B in aid

‘I don't qualify for a single government subsidy, for a simple government grant,’ says Brothers Butcher Shoppe owner

Yorkregion.com
April 21, 2020
Dina Al-Shibeeb

Vittoria Giovannetti -- a small-business owner selling men’s shirts in Vaughan -- called Prime Minister Justin Trudeau’s announcement of more than $1 billion in support for small businesses and startups “good news.”

The announcement comes to help those small businesses and startups who didn't qualify for the Canada Emergency Business Account (CEBA) and federal wage subsidy.

“It will help many but not all,” said Giovannetti. “Those that have shareholder loans or pay themselves through dividends are still in peril,” she added.

“Rent assistance comes as a relief. Let's wait and see!”

Trudeau unveiled the Canada Emergency Commercial Rent Assistance program to help small businesses and commercial property holders pay rent for April, May and June.

CEBA will be expanded, “increasing and decreasing the eligibility threshold,” Trudeau said.

Businesses that had a total payroll in 2019 of $20,000 to $1.5 million will be eligible. Before, the requirements were $50,000 to $1 million in total payroll.

The EIs have also expanded to include those earning $1,000 or less a month, such as freelancers. In addition, individuals who have lost or been running out of money from employment insurance since applying on January 1 can now apply for CERB.

The Canada Emergency Response Benefit (CERB) is a taxable government payment meant to temporarily help those grappling with job loss or other circumstances that have resulted in a sudden loss of income due to the COVID-19 pandemic.

'I don't qualify'

But businesses like that of Yehuda Goldberg, owner of the Brothers Butcher Shoppe in Vaughan, don’t qualify.

The butcher shop is only three years old, and whatever profits made are poured into the business as investment, Goldberg explained. “I didn’t take a salary last year,” he added.

“I don't qualify for a single government subsidy, for a simple government grant,” he said. “Nothing,” he emphasized.

Last year Goldberg said he didn’t “get any money from his business.” His last year’s T4’s base amount is “two dollars shy” of qualifying him for the $40,000 that most businesses are eyeing.

Even with rent, there is no help.

'I have at least one panic attack a day'

“My landlord won't help me out at all, because in his words, ‘I don't have to, so I don't want to.’ I work an average of 15 hours a day, 7 days a week. I now have at least one panic attack a day. I am deemed an essential service, but I don't have a choice but to stay open. If I close, I will have to immediately file for bankruptcy, as my landlord will kick me out as part of my lease, even if I continue to pay rent.”

Goldberg’s wife has lupus, and he cannot be around her. “I have been pretty much isolated from my family for five weeks now,” he added, describing how he has to endure this emotional toll on him in addition to keeping his business alive.

Goldberg feels that all the federal helplines are “geared toward the big companies.”

“To date, all the grants and programs have been given to the big companies,” Goldberg said, which includes hiring subsidies where 100 per cent of the new hires' salary goes toward "training," the $40,000 loan and payroll subsidies.

In late March, Prime Minister Justin Trudeau also announced $40,000 loans from banks that will be interest-free for the first year.

“Almost two months ago, I warned this would happen on the Jerry Agar show, and I was laughed at when I said the government will take care of the big guys and leave the small businesses behind,” he lamented.

Before Trudeau threw a rope to help small businesses, Giovannetti -- owner of 7Camicie in Vaughan -- also felt left out.

She made her voice heard by sending a message to both the provincial and the federal government describing her “plight” and explaining why she doesn’t “qualify for the assistance,” especially since she doesn't have any employees or payroll in 2019.

'We are one quarter of them'

Giovannetti has previously told Yorkregion.com that she is “hoping to qualify for one of the (government) loans because they were the first thing that we were told we can apply for, loans through (Business Development Bank of Canada) BDC, all small businesses,” she said.

“In York Region, we have 3,000 small businesses in my situation out of the 12,000 businesses that are in the York Region,” she added. “We are one quarter of them.”

Businesses in her situation have certain features.

“We are self-employed, we have maybe one part-time or two part-time people. And we don't have payroll -- like, I don't pay myself, everything goes into the business,” she said.

However, even with the BDC offering loans with personal guarantees, Giovannetti said, “I'm in my 60s, I already have those personal guarantees, I'm not going to get into any more debt, because we don't know where this is going to go.”

What’s “most frustrating” for Giovannetti is that “everyone gives you sort of the standard answers because the government doles out this, and then the banks don't know what they're doing, or lenders don't know what they're doing. So we're all navigating this new rules, this new life that we have.”

Sorbara wants to help

Francesco Sorbara, Liberal MP for Vaughan-Woodbridge, knows that navigating and understanding the new rules can be frustrating for people.

During a virtual town hall meeting held by the Vaughan Chamber of Commerce on April 8, Sorbara, who is also the parliamentary secretary to the minister of national revenue, called on local businesses to take advantage of Canada's wage subsidy portal.

“We need to get money into the hands of Canadian businesses and Canadian workers as quickly as possible,” said Sorbara.

The virtual town hall meeting on Facebook was to ensure that businesses are fully aware of the support being offered by all levels of the government. Those attending the meeting included Brian Shifman, Vaughan Chamber of Commerce CEO and president, who had questions from the board to ask Sorbara, Vaughan Mayor Maurizio Bevilacqua and Michael Tibollo, MPP for Vaughan-Woodbridge.

Sorbara said no businesses should “struggle” to get any information as the government continues with its helpline rollout. He said businesses should “message” him “directly” so he can explain these support lines.

For those businesses wanting “further clarity, please contact me directly and I will help you,” he said, adding that people should check the Vaughan chamber website for more details as well.

Sorbara also said that the finance minister is receiving “suggestions” from Vaughan businesses, further calling on people to be more interactive.