Member Update May 27, 2020
BC extends state of emergency another two weeks
The provincial government extended BC’s state of emergency until June 9. This state has been in place since March 18 and is the longest in the province’s history.
The province based this decision on recommendations from BC’s health and emergency management officials.
The state of emergency will continue to give the province the power to enforce public safety protocols like the moratorium on evictions.
We’ll keep you up to date as more information becomes available.
WorkSafeBC waiving premiums for employers receiving CEWS
If you have furloughed employees (i.e., on leave with full or partial pay), like office administration staff or assistants, and you’ve applied for the Canada Emergency Wage Subsidy (CEWS), you may not have to pay WorkSafeBC premiums on their wages.
WorkSafeBC announced yesterday that they’re waiving premiums on wages paid to furloughed workers of employers receiving the CEWS.
This will be retroactive to March 15 and will continue as long as the CEWS is in place.
You can calculate the amounts to exclude from assessable payroll for furloughed workers who were eligible for a CEWS subsidy by using WorkSafeBC’s calculator.
You can find more on the CEWS by reading the federal government’s FAQ.
Canada’s economy well positioned for post-COVID-19 recovery according to Bank of Canada
While COVID-19 created economic uncertainty, Canada’s financial markets are preforming well, and the country is well positioned for a post-COVID-19 recovery, according to Stephen Poloz, Governor of the Bank of Canada.
“Importantly, the economy was in very good shape when the pandemic hit: inflation was very close to target, and the unemployment rate was sitting at 40-year lows,” Poloz said in a guest lecture at the University of Alberta on Monday. “Just as a healthy, fit individual is more likely to shake off COVID-19, so is the Canadian economy.”
Poloz also said recovery would need to be supported by sizeable monetary stimulus.
You can watch the address here.
Economic impact on BC
TO help REALTORS® understand the impact of COVID-19 on the provincial economy and the housing market, the BC Real Estate Association (BCREA) launched an economic dashboard that gives weekly updates on economic activity.
Click here to view the latest update.
BC businesses struggling to attract customers, according to survey
As BC enters phase two of the BC Restart Plan, three-in-four businesses are facing challenges attracting customers, according to a survey conducted by the BC business community.
The survey, presented by a partnership between the BC Chamber of Commerce, Greater Vancouver Board of Trade, the BC Business Council, and others, is the third part of their COVID-19 pulse-check series.
Below are their other key findings:
Commercial Rental Assistance (CECRA)
Among businesses paying rent, 26% were unable to pay their rent in full in April. The primary reason is that they were shut down and had no revenue (75%). Others had no access to the CECRA program (30%) or could not come to terms with their landlord (19%).
Only 16% of businesses paying rent expect to qualify for the CECRA; another 27% are unsure. For organizations that expect to qualify, only 40% expect their landlord will apply for the program.
Emergency Wage Subsidy (CEWS)
While nearly 80% have noted declines in revenues, only one-third of businesses, 34%, expect to or have applied for the CEWS, another 11% may apply.
Half of those currently using the program are not sure what they will do when the program ends, but 30% expect to have to lay off employees and only one-in-five (18%) expect to return to business as usual (note the extension to the program was announced prior to the launch of the survey).
Additional government supports
In terms of financial assistance, 43% of businesses expect they’ll require significant financial support or incentives from the provincial and federal government, beyond those already announced, in order to continue operating.
Extending the wage subsidy is the most needed program (47%), in addition to enhancing the Emergency Business Loan (34%), extending the rental assistance program beyond June (26%), and providing funding for growing e-commerce or other products/services (29%).
Click here to review the full results.