Regina Exhibition Association Limited is getting some financial relief amid COVID-19.
On Wednesday, Regina city council approved a motion allowing REAL to access about $4 million in funding, borrowed from the city.
“This allows them to have funds available to pay their staff and continue on providing services,” Regina Mayor Michael Fougere said on Wednesday.
Tim Reid, REAL’s president and CEO, said the funds should hold them over until the pandemic over.
“We’re optimistic we will see some degree of business opportunity coming late summer, obviously before that would be wonderful…we just don’t know if that is 10 per cent of business that turns back on, 50 per cent or 100 per cent.”
City council passed a bylaw in 2015 which allowed REAL to borrow up $13 million to help finance the organization’s five-year capital plan and other expenses.
The $13 million is broken down into $3 million for an operating line, $9 million in capital term loans and $1 million for an exchange swap facility and corporate credit card limit.
Its current operating line of $3 million is set to be maxed out by April 26, about the same time REAL expects to run out of cash.
REAL’s request to council was to move money from its capital term loans to its operating line, making the funds accessible immediately.
“Because the city is our owner, anytime we do anything that affects our borrowing capacity or credit capacity, we have to make sure they support it,” Reid said.
Reid said although the funding will go towards keeping about 200 full-time employees on board, there are about 900 part-time staff members who are still on the payroll, but don’t have any shifts at this time.
“The nice thing is, we have some flexibility to weather this and I’m sure everyone else with their business is doing the same thing, “Reid said.
“You have these great employees that built your business and you need them. When business comes back to life, frankly we will need them more than ever.”
Reid said REAL has already lost about 85 per cent of its overall revenue during COVID-19 – $2 to 3 million.
If the situation continues throughout the summer; losses could be as high as $6 million, requiring REAL to discuss further money options with the city.
Questions about COVID-19? Here are some things you need to know:
Health officials caution against all international travel. Returning travellers are legally obligated to self-isolate for 14 days, beginning March 26, in case they develop symptoms and to prevent spreading the virus to others. Some provinces and territories have also implemented additional recommendations or enforcement measures to ensure those returning to the area self-isolate.
Symptoms can include fever, cough and difficulty breathing — very similar to a cold or flu. Some people can develop a more severe illness. People most at risk of this include older adults and people with severe chronic medical conditions like heart, lung or kidney disease. If you develop symptoms, contact public health authorities.
To prevent the virus from spreading, experts recommend frequent handwashing and coughing into your sleeve. They also recommend minimizing contact with others, staying home as much as possible and maintaining a distance of two metres from other people if you go out.
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