what we’re
advocating for
The Alberta Hospitality Association exists to provide a unified voice for our industry. At its core, AHA wants to see our industry thrive and grow. In order to achieve this, AHA has focused on some key causes that we believe are having the most effect on businesses in our industry.
CEBA
Repayment Plan
What is the concern:
The Canada Emergency Business Account (CEBA) Loan Program is a government-guaranteed loan program for eligible small businesses that provided interest-free loans of up to $60,000 to help cover operating costs during the pandemic.
Businesses have till December 31, 2023, to repay the full loan amount to take advantage of its full benefits. If the loan is repaid by the deadline, 33% of the loan amount will be forgiven, up to $20,000. AHA is calling upon the Government of Canada to provide more support to the hospitality industry by adjusting the repayment plan for these loans.
Why is this important:
The hospitality industry was one of the hardest hit industries during the pandemic. It was targeted with late-stage closures that have had an immense impact on operations. In many cases, losses throughout those closures far exceeded subsidy supports distributed throughout the pandemic. Since reopening, operators have dealt with a wide range of new issues that affect their bottom line and their ability to repay these loans before the deadline. Hospitality is an industry that operates with razor-thin margins. Rebuilding the industry to pre-pandemic standards will take time. Issues that the industry is currently facing include labour shortages, lack of skilled workers, increased training costs, inflation and supply chain issues (to name a few).
What AHA is calling for:
1. Forgiveness of full or additional portion of CEBA loan.
2. Interest-Free installment repayment plan. A four-year repayment plan of $10,000.00 annually.
3. Grant funding for smaller operators that will help reduce their loan repayment by 50%.
These owner-operators would have to meet certain eligibility criteria. These same operators would be able to enter into a repayment plan as well for their remaining balance of CEBA loans outstanding.
Insuring the sector
What is the concern:
Finding fair-priced coverage that fully meets the needs of hospitality operators is extremely difficult and has been a growing issue, even prior to the pandemic.
Why have rates risen?
An increase in claims and losses in recent years.
With fewer insurance providers supporting hotels and restaurants, we’ve seen an unbalanced escalation in rates due to a lack of competition
Pandemic-related closures and suspensions in the hospitality sector mean that fewer restaurants are paying into the pool that covers losses.
The overall effect of a globalized insurance market.
Why is this important?
Being able to afford insurance is fundamental to new businesses that are looking to start up in Alberta. Not having affordable insurance is a major barrier to entry that can deter new owners and operators from entering into the Alberta market. In addition, with margins at an all-time low for current owners and operators another rise in insurance prices could have a detrimental impact on businesses still trying to operate in the province.
What AHA is calling for:
AHA is continually meeting with Government and insurance providers to fight for change and demand fair insurance rates for operators. We want to see affordable rates and reduced red tape around this issue.
Other initiatives we are focused on
Mental Health
Mental health is paramount for both industry operators and their employees. Increasing awareness around mental health, providing outlets for support, reducing stigma and encouraging healthy dialogue around wellness are our top priorities. AHA is committed to paving a path for a healthier future for its workforce.
Inflation
As many are aware the rising cost of food is squeezing profit margins to their minimum. We are continually speaking with the government in attempt to help alleviate this major point of concern.
Taxation Enforcement of Tips
What is the concern:
AHA members are experiencing an increase in CRA audits because of the manner in which are tips recorded as income to the business. These audits are resulting in a large collection of back taxes and retroactive contributions for CPP and EI that are crippling small businesses. This is in large part due to the unclear legislation surrounding tips and standard reporting practices.
Why is this important:
All restaurants in Alberta handle tips differently. The current laws leave room for speculation amongst owners and operators.
Currently, there seems to be a push to audit and collect all forms of tip structures on businesses that have not been putting tips on paycheques. They are then being charged retroactive contributions for CPP and EI as well as back taxes on income. In some cases going back many years.
The obvious issue is that the CRA is asking for contributions and taxes on money that the businesses never collected as income. AHA believes this is wholly inappropriate given the vague nature of the laws.
What AHA is calling for:
That the ruling Government makes clear its intentions around the law so that sound policy can be achieved in regard to tipping policies.
