For Alisha Mohammed, opening a doggie daycare in a busy part of downtown in a growing city seemed like a no-brainer.

But with more and more people staying home and cancelling vacations amid the COVID-19 outbreak, she’s facing major revenue losses in what is supposed to be her busiest season.

“I don’t know what I’m going to do in this situation,” she told the Star Monday from her Gerrard Street business.

At first she wasn’t worried because pets aren’t impacted by the virus. But as governments announced further travel and other restrictions, she quickly realized most pet owners no longer need her.

She normally has an average of 11 to 12 dogs in her care at Paws in the 6ix Inc., but was looking after just four when she spoke to the Star.

“Now that everyone’s kind of at home and in isolation no one needs my services … So it’s been very rough. I don’t know where I’m standing at this point.”

On Monday, Mayor John Tory launched a multi-pronged effort to help Toronto businesses and workers hurt by the COVID-19 crisis, including a grace period on taxes and a task force to determine next steps. But how soon help will be available — and for whom — has left business owners and employees scared about the future.

“COVID-19 is having a devastating impact on the City of Toronto’s economy,” a statement from Tory’s office said Monday morning.

“Mayor Tory is doing everything he can to make sure the municipal government is doing everything possible, in full cooperation with the provincial and federal governments, to minimize that impact and see an economic recovery take place as soon as possible.”

Though the announcement said a contingency fund was being considered, there were no details about the amount that would be available, how that program would be administered or how it would be funded.

Tory, who is in self-isolation in his downtown condo because he travelled abroad last week, told the Star by phone they haven’t specified an amount because he wants to talk to business owners, unions and employees first. Toronto has access to a total of $6 billion in reserves, $290 million of it “readily available,” he said, but the city doesn’t have resources of provincial and federal governments.

“We can’t do all this alone because of our relative lack of financial capacity,” Tory said.

Last week, the federal government announced a credit program for businesses — further financing totalling $10 billion to be made available through the Business Development Bank of Canada (BDC) and the Export Development Canada (EDC).

Closures in line with provincial health directives, like those of live entertainment theatres, tourist sites and daycares, are expected to grow to include more businesses as local “social distancing” efforts to fight the deadly global pandemic ramp up.

Mohammed said the main sources of income for the business run by her and her mother are daycare, boarding and grooming. She opened on Gerrard Street East near Sherbourne Street with the help of a $10,000 bank loan less than a year ago.

She estimates she stands to lose $4,000 to $5,000 every month based on the current slowdown — a significant figure for a small business.

As a new business, she feels at particular risk with the loan to repay — cash that didn’t cover her capital costs in the first place — and uncertainty about what relief is coming from various levels of government.

She was told by the BDC she doesn’t qualify for financing available through that federal stream and that she should talk to her bank for an increase on her current loan. She has yet to hear back.

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“I’m kind of just floating in the air,” said Mohammed, adding she’s not sure about making her monthly loan repayments, whether they can be forgiven, paying rent and other servicing fees at the store and at home — or anything else.

“This has just completely thrown me back to square one.”

Jessica Myers, chair of the Yonge + St. Clair BIA said she hoped the incentives announced by the city Monday are just the “tip of the iceberg.”

“These are unprecedented times,” she said, noting the impacts will be especially hard for small businesses.

“There’s quite a few businesses here who just opened up and it took them months and weeks and years just to get to that point.”

BIAs like Myers’s are acting as conduits to local businesses to provide timely and accurate information about the rapidly changing situation.

That includes West Queen West, where the BIA’s executive director Robert Sysak said the hospitality, tourism and restaurant businesses are starting to feel the effects of the virus on their bottom line.

“A lot work pay cheque to pay cheque. Their tips matter,” he said of workers in those sectors. “Uncertainty’s the thing that creates the most fear.”

He said messages from the federal and municipal government have been encouraging, and said businesses need cash now to cover wages and other expenses.

The task force announced by Tory will look to quickly determine supports and stimulus required to help affected businesses and employees, the mayor’s office said.

Initial initiatives include:

Extending a grace period for tax and other City of Toronto payments for businesses (payment and payment penalties) for 30 days as of March 16.

Protect city recreation employees from layoffs this month due to the cancellation of city programs. The city will pay the primarily part-time staff for shifts that were planned for city-run daycares, museums and recreation centres.

Work with affected businesses and workers who need to access the Employment Insurance system to ensure they know how to apply.

Expand the city’s small business advisory services to help businesses as they plan to recover from impacts.

Urge the provincial and federal governments to waive penalties for businesses that fail to remit HST on time.

Tory said he, along with Couns. Michael Thompson and Gary Crawford, will start conference calls this week with key stakeholders in different sectors of Toronto’s economy to decide next steps to help businesses and residents.

David Rider is the Star’s City Hall bureau chief and a reporter covering city hall and municipal politics. Follow him on Twitter: @dmrider

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