Businesses Need More Gov’t Support: Liberals

New Brunswick’s Official Opposition says businesses are in desperate need of financial help to get through the pandemic.

Interim Liberal leader Roger Melanson has penned a letter to the premier calling for more provincial support.

“Business owners are thankful for business assistance programs that have provided help at a time when it is desperately needed, especially programs like the Canada Emergency Wage Subsidy, the Canada Emergency Rent Subsidy program, and the Canada Emergency Business Account loans that provide interest free, partially forgivable loans to business,” Melanson wrote.

“While these programs are helping to stave off business closures, we believe that the Government of New Brunswick also needs to step up with additional programs to support business.”

MLA Gilles LePage said they welcome a new grant for small businesses affected by Orange or Red alert level measures for at least one week.

But LePage, the critic for Economic Development and Small Business, said the grant of up to $5,000 is only a drop in the bucket for most.

“If you talk about the microbusinesses with one or two employees, it would cover a few of those expenses for a few weeks within this pandemic,” LePage said in an interview.

LePage said businesses have invested out of pocket to be compliant with Public Health regulations.

At the same time, LePage said many of those businesses have also faced significant revenue losses.

“It’s a double whammy for our small- and medium-sized businesses and there’s a lot of ways that the provincial government could have helped these businesses,” he said.

LePage suggests reducing or eliminating some government fees, providing direct financial aid for fixed costs such as salaries and rent or mortgages, and delaying the deadline for property tax payments.

The Liberals said the province should also consider creating programs such as a Small Business Emergency Support program, where the province guarantees 25 per cent of working capital loans up to $100,000. Companies that repay the loan within two years would see the 25 per cent guarantee forgiven.

LePage said without government support, many businesses might be forced to close for good, which would have a drastic impact on the provincial economy.

“We will lose our economy, people will be losing their jobs, government will be losing revenues without these businesses that are paying taxes on their goods and services that they’re selling.”

“Fiscally, in the long term, it will have a major impact on the way that government will be able to deliver services across the province.”