Struggling water-sports operators say they are being turned down for financial aid as they strive to keep their businesses afloat.
A group of 13 business owners wrote a joint letter to Commerce Minister Joey Hew highlighting the high rejection rate for operators seeking grants from the Centre for Business Development.
Troy Leacock, owner of Crazy Crab Private Boat Charters and a spokesman for other operators, said the sector has been among the worst hit by COVID-19. Though he was able to get a grant for his business, he said many others, including the 13 listed in the correspondence, were not.
The programme offers grants of up to $20,000 as well as loans, advice and support to small and micro businesses.
Leacock said the majority of water-sports businesses that had applied for the grant appeared to have been turned down.
Commerce Minister Joey Hew acknowledged that was likely the case for many operators.
He said that particular programme was designed to help businesses that needed support to pivot to cater to the domestic economy.
That likely precludes operators whose business model is purely aimed at tourists.
A total of 370 businesses have received funding and support, he said.
Hew added that the funds had been specifically designated to provide economic stimulus by supporting companies that could keep running during the lockdown. He said they were not designed as relief payments for businesses that were struggling to meet expenses as they hold on for the borders to reopen.
He acknowledged, however, that more may need to be done for that sector of the business community.
Leacock said there were many operators out there that had extremely successful businesses that were totally shut down because of the virus and its impact on tourism. Those people still have to pay insurance and expenses on their boats and feed themselves and their families on a $1,000 stipend.
He said it was likely unrealistic for many of them to find alternative employment at a time when jobs are scarce and when they have committed investments in businesses that will be viable again once the tourists return. He said they need more help to prevent them from going under before that happens.
“Considering the year to date, government has a revenue surplus of $32.2 million. It is simply unacceptable that the industry sector mostly comprised of Caymanian owners and employees is not fully supported to survive.”
Leacock said operators were also still waiting for information on the extension of the Health Insurance Premiums Payment Assistance Program which ended in June.
With the approval of a vaccine and some reopening of tourism in sight, Hew said government may be in a better position to provide additional support.
Though he said it was not possible to provide the business development grants to operators who did not qualify, he said government would look at other ways to help.
“These are real, relevant issues and the government will try and find a way to assist the industry,” he said.
Government’s financial situation was better than anticipated and, with an end in sight for the pandemic globally, it would likely have capacity to provide more support in the new year, Hew added.
The $1,000-a-month stipend for people left without work as a result of COVID-19 has been extended to June. Hew said additional support for business owners was also being considered.
“Things have changed dramatically with the arrival of a vaccine and the ability to begin to plan for an opening date. We do have some breathing room [financially].”
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