Finally, salons are open right across Canada. Some still have restrictions to deal with, others are just about back to normal. Manitoba is about to go to the next stage, same with Ontario. Even Waterloo Health Region has caught up with Ontario. Ontario is moving to Step 3 earlier than expected. Canada has one of the highest vaccination rates in the world and, whether we believe in this or not, governments are bases restrictions on these rates and hospitalization. Since my last newsletter, Covid 19 rates have dropped from 17.6 to 1.2 per 100,000 across Canada. Mask wearing in most part of Canada is no longer a law; it is a personal choice.

I would suggest that salons should continue to try and maintain social distancing and keep your barrier up, more for perception. Clients still need to see we are doing everything to protect them.

As salons have reopened, I’ve heard from salon owners that sales are good for the first few months then drop off. Most salons are saying they are doing better than they expected. Some have recovered to pre pandemic numbers. It’s good to see the federal government opening the borders. From talking with friends and family, people want to book a holiday. They are ready to travel, especially after being double vaccinated. Hopefully it will be a great fall season for travelers. This could turn out to be a great year to be in the sunbed business. For some getting through the summer will be hard, but hopefully subsidies will help.

Just before Canada Day the federal budget was passed allowing wage and rent subsidies to be extended to September 25^th and can be extended all the way to November 30^th if required. Starting after July 3^rd period (17), the subsidies will start to decline. JCTA Members, in an Member Update, received  a review of the updated programs for Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy (CERS) and the latest program, Canada Recovery Hiring Program (CRHP) which can be found on the  CEWS link above.

Changes to the CEWS as of claim period 17 (Bill C-30):

• the wage subsidy has been extended to September 25, 2021.
• the new Canada Recovery Hiring Program (CRHP) was introduced, beginning June 6, 2021.
  • for claim periods 17 to 20, claim either CEWS or CRHP, whichever gives you the higher amount.
• beginning in claim period 18, you must have had a revenue drop of over 10% to receive the CEWS or CRHP.
• the rate of CEWS will gradually decline from claim periods 18 to 20.
• eligible remuneration paid to employees on leave with pay is no longer included in the CEWS calculation as of claim period 20.
• certain publicly listed corporations may have to repay some or all of the CEWS they received from June 6, 2021, onward, depending on how much compensation was paid to certain executives in 2021 compared to 2019

Unless you are hiring a lot of staff back you may find the CRHP will not help you. But the CEWS online calculator now includes CRHP calculation so you can find which option give the most money. The government still allows you to use your January and February revenue to calculate your revenue drop. That is good news for most salons. You can also switch from either CEWS or CRHP in each reporting period. When I applied for wages, because my salon has been open, CEWS was still the best subsidies to apply for. But you should check it for every period you apply for.

The changes to Canada Emergency Rent Subsidy (CERS) have the similar percentages you can claim as CEWS. There has been some clarification on lockdown support as well and how to claim.

Remember your deadline for the CEBA loan expires August 31^st. This is a loan up to $60,000 and if you pay back by Dec 31^st, 2022, you only pay $40,000 and $20,000 becomes a grant (does not have to be repaid).

The JCTA marketing has now been turned back on to help get people back into salons, especially Ontario and Manitoba. Spending was increased in these 2 hardest hit provinces. Normally our marketing would be ending in June, but since we turned off the advertising in June, the JCTA moved that amount into July. With social events now being allowed, we wanted Canadians to know we’re open to help with the perfect glow, whether by sunbed or spray. As you have read in the past, the JCTA marketing is all about driving Canadians to their local member salon and giving them a little education along the way.

Everyone loves to save money. The JCTA insurance program has saved hundreds of dollars for members. If you get a call from Amy, she is calling on behalf of the JCTA to help salon owners save money and introduce you to the NEW JCTA Insurance program. It only takes about 5 minutes to fill out the application for a quote on the phone. You do not have to be a member to get a quote. If you would like a quote, please send an email to info@TanCanada.org or call 1.800.915.0367 and let me know what the best number to reach you. The coverage can be even better than what you may be getting right now. Or you can go online and take 15 minutes out of your busy day and get a quote. You should always compare prices and what coverage you are getting for that price.

The JCTA is here to help, whether you want great insurance, need an understanding of subsidies and grants, just need to talk to someone that understand what you are going through, or you just need a sounding board. Contact us at info@TanCanada.org or 1.800.915.0367

Steve Gilroy, JCTA Executive Director