Construction Relief Fund for Local Businesses

Summary#

• This bill creates a provincial fund to help customer-facing businesses that lose access and sales during long government construction.

• It aims to keep shops and services alive when streets, sidewalks, or other public works block customers for months.

• Key points:

  • Applies only to construction by the Province or a municipality that lasts at least six months and makes it harder to reach one or more businesses.
  • Eligible businesses include retail stores, restaurants, personal services (like salons), and rental shops.
  • Not eligible: professional services (e.g., law, accounting), finance and insurance, health care or social services, and most real estate services (except self-serve mini-warehouses).
  • Business must have been open before the construction started and show a drop of more than 5% in gross profit (sales minus the direct cost of goods/services sold) due to the construction.
  • Maximum payment is the smaller of $40,000 or the business’s proven gross profit loss.
  • The Minister sets application rules and deadlines and may collect needed personal or business information.
  • Payments depend on the Legislature approving money for the fund.

What it means for you#

• Businesses that serve the public

  • You can apply for help if government or municipal construction blocks access to your location for six months or more.
  • You must show that your gross profit fell by more than 5% because of that construction, and that you were operating before it began.
  • If approved, you can receive up to $40,000, but not more than your actual gross profit loss.
  • You will likely need to share financial records and meet deadlines set by the Minister.
  • Work done by private developers does not qualify.

• Examples of likely eligible businesses

  • Shops and boutiques
  • Restaurants and cafes
  • Barbers, hair and nail salons, dry cleaners, repair shops
  • Equipment, bike, or party rental stores

• Not eligible

  • Professional, scientific, or technical services (e.g., law, accounting, consulting, engineering)
  • Finance and insurance (e.g., banks, credit unions, insurers)
  • Health care or social assistance (e.g., clinics, dentists, therapists, child care)
  • Most real estate services (brokers, property managers). Self-serve mini-warehouses can qualify.

• Residents and customers

  • Construction may still cause delays and detours, but the fund aims to help local shops survive until work is done, keeping neighbourhood services available.

• Timing and funding

  • The program only pays out if the Legislature sets aside money for it. If no funds are appropriated, no payments can be made.

Expenses#

No publicly available information.

Proponents' View#

• Helps keep main streets alive when long public works cut off foot traffic and parking.
• Targets aid to those clearly affected, using a simple test (more than 5% drop in gross profit).
• Can prevent permanent closures and job losses during major road, sewer, or transit projects.
• Fairness: government-caused disruptions should come with support for affected businesses.
• The $40,000 cap limits costs and focuses funds on small and mid-sized firms.
• Letting the Minister set application rules allows faster setup and clearer guidance.

Opponents' View#

• Total cost is unknown and could be high if many projects run long; taxpayers fund the program.
• Proving that losses were caused by construction, not the economy or other factors, may be hard and could lead to disputes.
• Many types of businesses are excluded even if they are hurt, which can seem unfair.
• The six-month threshold leaves out shorter but still painful disruptions.
• The $40,000 cap may be too low for very long or severe access problems.
• Applications may require detailed financial records and personal information, adding admin burden and privacy concerns.