ACTA Welcomes Changes to Aid Programs, But Cautions that they ‘Fall Short’
by Daniel McCarthy
ACTA is applauding the expansion of some programs while calling on the Canadian government to do more. Photo: Shutterstock.com.
The Association of Canadian Travel Agents (ACTA) over the weekend issued a statement welcoming changes to federal aid programs installed by the Canadian government over the weekend. However, there is still work to be done, including targeting aid to the hospitality and travel industries as long travel restrictions remain in place.
“We are pleased to see that some of our recommendations have been heard,” said Wendy Paradis, president of ACTA. “However, our work will continue as this falls short of what is needed to save the travel industry while travel restrictions remain in place.”
According to ACTA, the changes benefit hard-hit agencies while still falling short of doing what’s needed, including an extension to the Canadian Emergency Wage Subsidy (CEWS) program through the end of 2020 with a rate of 65% up to Dec. 19, 2020. That news, while positive, means that CEWS is still 20% short of the 85% that ACTA had been lobbying for and there is also no clear guidance as to what the rate will be after Dec. 19.
ACTA also applauded news that the Canadian Emergency Rent Subsidy (CERS) will now be available directly to tenants through June 2021. That program can help brick-and-mortar agencies cover up to 65% of rent or mortgage payments if they are down 70% or more. ACTA says that it will continue to push for the extra 25% top-up for agencies, which is made available to businesses directly closed because of the pandemic.
Other programs that can impact agencies include the expansion of the Canada Emergency Business Account (CEBA) program, the Regional Relief Recovery Fund (RRRF), and the Canada Recovery Benefit (CRB).
The CEBA will give businesses an interest-free loan of $20,000, in addition to that $40,000 CEBA loan, with half of the loan forgivable if repaid by the end of 2022.
The RRRF, now replenished with an additional $600 million, is designed for small and medium businesses. And the CRB will now give $500 a week to those claiming an unemployment income reduction by at least 50% due to COVID-19, but who are not eligible for employment insurance.
