The Saskatchewan government has unveiled a couple of measures to help those facing economic challenges during the COVID-19 emergency.
One measure is the Saskatchewan Small Business Emergency Payment. Premier Scott Moe and Trade and Export Development Minister Jeremy Harrison announced details at a news conference in Regina Thursday afternoon.
The announcement comes in the wake of the latest labour market data from Stats Can, which saw Saskatchewan down 21,000 jobs in March compared to the month before.
“These numbers represent real people, who are working for Saskatchewan businesses who are now unemployed,” said Moe. “And they highlight the importance of Saskatchewan small business receiving support from the government.“
The new support effort is a $50 million program which, Moe said, will “provide direct financial support to small and medium-sized businesses that have had to temporarily close or significantly curtail their operations as a result of the current pandemic response.”
Recipients will be eligible for a one-time grant based on 15 per cent of a business’ monthly sales revenue, to a maximum of $5,000. Eligible businesses must have been fully operational at the end of February; had ceased or curtailed operations as a result of the COVID-19 public health order; have less than 500 employees; and who commit to reopen business operations following the end of the restrictions.
“The program was designed to be simple, and is designed to provide businesses with timely access to much-needed financial support,” said Moe. “And it was designed to give maximum flexibility to businesses. This grant is not dedicated to specific cost pressures, it’s there for them to use as required.”
Moe said it “was clear through the consultation process that many businesses are facing acute cash flow pressures in the immediate term owing to fixed overhead costs such as rent payments for example. This new grant will help businesses address just such pressures.”
Premier Moe also said province will be requesting the federal government exempt the SSBEP from business income for tax purposes.
He adds this is the first step in their recovery efforts and Moe pledged his commitment to continue to work with business “during a very unprecedented time.”
HELP FOR POST-SECONDARY STUDENTS
Another measure announced Thursday is aimed at post-secondary students. The government announced in a news release it will make available upwards to $1.5 million in emergency financial aid for at-risk post-secondary students.
The help is coming for students with limited financial resources and supports whose studies and employment have been disrupted.
The emergency bursaries will be available April 1 to Sept. 30, 2020. Details on eligibility and applications will be made available to students through their post-secondary educational institution within the next week to 10 days. Amounts students receive will depend on their circumstances, and will be available to both domestic and international students. Adjustments to the program may be made once details of federal assistance are announced.
“Our government is committed to helping students achieve their educational goals,” Advanced Education Minister Tina Beaudry-Mellor said in a news release. “This is especially true during this unprecedented time, as some students are faced with limited supports. These resources will help quickly address some of their more pressing needs.”
DEPRESSION FEARS?
During the question and answer session at the news conference Thursday, Moe was asked whether there was a chance the province might fall into a depression.
Moe said they were expecting, when the restrictions came into full force, that there would be additional job losses. “What we are seeing today is an investment in small business, ultimately in the people employed in small business, to ensure that when we get on the back side of this curve that we have a small business community in the province, so we have an economic recovery. And that is what today’s announcement is about specifically.”
“Clearly we are facing an unprecedented challenge to our labour market,” acknowledged trade and export minister Harrison. He stressed however, the province was positioned to recover afterwards.
“Our jurisdiction is likely one of the best positioned in the entire world in terms of the recovery. We have what the world needs whether that be food, whether that be fertilizer, whether that be energy. We have what the world is going to need when we recover and rebuild, and we’re going to be prepared as a government under the Premier’s leadership when we get on the back side of this pandemic.”
