New Brunswick businesses feeling the pinch as CECRA ends
Juanita Tremblay is packing up her office and will be handing over her keys to her landlord today.
The Miramichi entrepreneur made the tough decision to close her business, Close to Home Gifts & Decor.
Numerous factors led to her decision to close the business, Tremblay said, but having to pay her full rent during the pandemic was a major one.
Her store was closed for about two months during the spring, and when she opened again in May, business was slow.
"When we came back, there wasn't enough sales to even cover my rent," she said.
Tremblay owns and operates three businesses in Miramichi and has been paying full rent on all of them since the start of the pandemic.
She asked both of her landlords to apply for the Canada Emergency Commercial Rent Assistance, or CECRA, but neither of them did.
One landlord told her they would not qualify for the rent subsidy, and the other said they were not interested in going through all of the necessary steps.
"And so that fell through," she said. "I just decided it was better off to close. I just couldn't stay open and lose money every day."
Tremblay said rent relief would have helped her survive a while longer but, in the end, consumers were not spending their money in gift shops like hers during the recovery.
Karen Grant, president of Kiers Marketing in Fredericton, said her landlord did take advantage of CECRA.
The rent relief took some of the pressure off once the pandemic hit. It was "another obligation that we did not have to worry about."
The company was able to continue working on files this spring during the pandemic, which meant her business was still operating even if the doors were closed.
Grant said the end of CECRA is not going to affect her business because the timing works in her favour. Typically, her business slows down during the summer months and picks up in September.
But another month of rent relief would have been helpful "just to have a little bit of wiggle room."
Federal money left on table
Only 444 landlords in New Brunswick applied to CECRA, said Louis-Philippe Gauthier, the director of provincial affairs for New Brunswick with the Canadian Federation of Independent Business.
That is about a third of the number of landlords that were eligible for the program, which means most of the total budget for the program will be left untouched.
"Two-thirds of it has been left unused," he said. "It means that businesses that would need the support will just not be getting it, unfortunately."
Gauthier blamed the low participation in the program on the way it was designed. It was up to landlords to apply for the rent relief, but tenants were the ones most affected.
"It's quite frustrating," he said.
"Business groups like CFIB have been telling the federal government it should have been retooled much earlier."
Gauthier said there is now a lot of support funding left on the table when it could have been used by business owners.
"That's not reaching the businesses that could make use of it to help them go through the recovery of the shutdown."
Now that CECRA is over, Gauthier said, it is important for businesses to talk to their landlords.
"Find arrangements that suit both your business and the landlord's needs." He added that even if that is not possible, having the conversation is important.
"It's like having a conversation with your banker when you need to have an extension on your margin."
"Your rent is a conversation that you can have with your landlord."
Entrepreneurial spirit remains
Despite the closure of her store, Tremblay said she is looking forward.
"I'm only 50 years old. I've got at least 15, 20 years left in business."
She is doing some research on the type of business she wants to invest in next.
Tremblay said it is sad to pack up her belongings at the store before closing the doors for the last time, but she is ready to move on.
"It's not my fault. It's nobody's fault. It is life. It's what happens."
"It's a new beginning. So it's all unicorns and lollipops after this."
