Province announces business development grants

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This article was published 19/07/2022 (1170 days ago), so information in it may no longer be current.

With 30 per cent of downtown storefronts vacant after 75 downtown business closures since the pandemic began, there is a general acknowledgement that help is needed in the commercial centre of the city where the recovery is slow.

On Monday the province announced it is making $2.5 million available as part of a continuum of COVID support initiatives to provide business development grants, connecting emerging businesses with vacant storefronts and produce a downtown marketing campaign.

Details of the size of the grants have not been finalized. Applications — which will be administered by Downtown BIZ and the Manitoba Chambers of Commerce — are expected to be available later this summer.

Tim Yuen, the owner of 9Round Downtown Fitness in the Cargill building, said he’s grateful for support like this and for previous programs from which he has received a small grant.

But he said people have to be patient as service providers like his gym continue to work up their staffing requirements and business models to meet the needs as the office towers slowly start to re-fill

“The sooner we bring back downtown workers the better it will be for all of us,” he said. “There is a synergy between the coffee shops the financial offices and the local gyms. We need each other to help the community grow.”

The $2.5 million is coming out of the province’s $50 million Pandemic Long-Term Recovery Fund which now has about $7.5 million left.

In the past, that $50 million has been drawn down for other programs: $9 million for restaurants; $2 million for support local; $3.5 million for local tourism rebates; $12 million for retraining Manitoba workers; and $15 million for the Digital Manitoba Initiative.

The Manitoba Chambers of Commerce acts as the banker for the province, disbursing the funds and providing reporting to the province.

Chuck Davidson, the CEO of the chamber, said there is no doubt businesses have been hurt and ones located downtown have been especially challenged.

“Our surveys show that 80 per cent of businesses have been impacted and that they believe it will take six months to a year to get back to pre-pandemic revenue levels,” he said.

Kate Fenske, the CEO of the Downtown Biz, said the plan is to be flexible when it comes to disbursing grants, making it accessible for those that just need one or two thousand dollars to do a paint job, to potentially up to $25,000.

She said the process of matching new businesses with empty storefronts will start with the business and what their needs are. She said her staff has been keeping track of the storefront vacancies and will work with landlords to try to get the right fit.

She said the marketing piece could use up about $300,000 of the $2.5 million and will focus on the small business component of downtown as opposed to larger marketing campaigns that organizations like Tourism Winnipeg and Tourism Manitoba conduct to attract visitors.

While empty storefronts and the many “For Sale” signs on downtown businesses indicate a struggling commercial sector downtown, there are also heightened concerns about crime and safety, which is likely stalling the recovery even more.

Two years ago, a number of downtown organizations formed the Downtown Community Safety Partnership with $5 million of funding from the province.

That program – which includes paying for a staff of about 60 community outreach workers – is set to expire by the end of the year.

Industry Minister, Cliff Cullen, who was the Justice Minister when the program was formed, said there has been positive results from the program.

“The next step is looking at the sustainability of that program and we are talking with our partners at the city and the federal governments,” Cullen said. “I am meeting with the Justice Minister today about it.”

Fenske said the program is staffed 24/7 by a well-trained team that can support Winnipeg Fire and Paramedic Service. There is also the Connect Team in bright green outfits that help folks out downtown. It also has staff dedicated to working with the homeless to help them get identification documents and things like that.

“Perception matters,” Fenske said. “Cities across North America are struggling with the challenges we are seeing here in Winnipeg. It really is about taking the approach of having increased community outreach on the streets, increased supports available for people and coordination between the organizations who are doing great work.”

martin.cash@freepress.mb.ca