New Brunswick

Small businesses affected by lockdown offered provincial grants — but many don't qualify

Many New Brunswick business owners are worried about the future of their business after learning they don’t qualify for provincial grants aimed to help small businesses in the COVID-19 pandemic.

Without the funding, small business owners in New Brunswick worry they won't be able to last much longer

Abby Pond, owner of Queen of Cups Lingerie in St. Stephen, says her business has been struggling since the pandemic first hit last March. (Photo submitted by Abby Pond)

Many New Brunswick business owners are worried about the future of their business after learning they don't qualify for provincial grants aimed to help small businesses in the COVID-19 pandemic.

As of Monday, businesses impacted by lock-downs are eligible to apply for the New Brunswick Small Business Recovery Grants, ranging up to $5,000.

"Everything is starting to run on empty," said Abby Pond, owner of Queen of Cups Lingerie in St. Stephen.

We don't have anything left to give at this point- Abby Pond

But Pond doesn't qualify for the grant because she needed to have at least two full-time employees to qualify as a small business. 

She was hoping to use the money for marketing, to help launch a product she's been withholding since last year. 

Pond, who is also a board member for the St. Stephen Area Chamber of Commerce, said she lost 100 per cent of her business revenue when the lockdown was put in place in March because she did all of her fittings in person and she did a lot of teaching across Atlantic Canada.

"I immediately pivoted and started making masks, which carried me through until May," she said.

"But then as more masks kept coming on the market for different places, we went back to trying to make bras." 

Things got a bit easier in the yellow phase over the summer, when Pond could operate her business.

Then fall came, along with more restrictions from Public Health.

"We spend upwards of 40 minutes with someone in close contact when we're doing fittings," she said. "So it's important for us to follow COVID-19 protocols." 

Nothing left to give 

During lock-downs, she's been doing all of her fittings virtually, which takes more time.

She said her production time more than doubles, impacting her cash flow. And her expenses stay the same. 

"We don't have anything left to give at this point."

Pond has also been forced to move her business back home. It's been difficult, because she's had to bring outsiders into her home.

And she can't pay herself or an additional employee. 

"We don't have anything left to give at this point."

Pond has heard from other local business owners who have decided to close up shop altogether.

And the lockdowns are particularly having an impact on female entrepreneurs and visible minority groups.

Even if there was financial help, the local business owner isn't sure she has the physical or mental capacity to keep going. 

"It's almost like the help that's coming is too little too late."

'Trying to find the silver lining'

Matt Elliott, owner of Ethel & Mary's, a small diner and bakery in Saint John, doesn't qualify for the provincial grant because he's currently the only one working there. 

"It would've been extremely helpful," he said

In the fall, the restaurant owner had to lay off three of his employees.

"I would certainly love to have the help now," he said. "Running a restaurant as a one-person show is extremely difficult and exhausting."

Matthew Elliott has been running his Saint John diner on his own for months. He says it would be nice if government stepped in to help out financially. (Facebook)

He's trying to do new and innovative things with his business, but said he's only staying afloat because of the support from people in his community.

And he's wondering how long he can run a small diner and bakery on his own. 

"There's only so much that I can physically do and that I have the patience to do."

When he first heard about the provincial bursary earlier this year, he was cautiously optimistic. But he said he wasn't surprised when he found out he didn't qualify.

"I'm trying to find the silver lining."

He said there is too much focus on big corporations as opposed to small business owners.

"I would love to be proven wrong on this point."

CBC News has asked for an interview with Opportunities New Brunswick and is waiting for a response.

ABOUT THE AUTHOR

Elizabeth Fraser

Reporter/Editor

Elizabeth Fraser is a reporter/editor with CBC New Brunswick based in Fredericton. She's originally from Manitoba. Story tip? elizabeth.fraser@cbc.ca

With files from Information Morning Saint John