Provincial COVID-19 Canadian Business Support Programs
This article was written by Inna Koldorf, Partner at Canadian national law firm Miller Thomson LLP on April 24, 2021.
Since the pandemic reached Canada in early 2020, the federal and provincial governments have implemented several support programs to assist businesses with the effects of the pandemic. The list of programs is too lengthy to include in this article in full and can be found on the Miller Thomson LLP COVID-19 page.
In part one of this article, we discussed some of the programs offered by the Federal Government in Canada. The following are some of the employment-related Canadian business support programs currently offered by the provincial governments across the country.
Alberta
The following Alberta business support is offered by the Province of Alberta to assist businesses with the effects of the pandemic.
Alberta Small and Medium Enterprise Relaunch Grant
This grant offers Alberta businesses financial assistance, who were ordered to close or curtail operations as a result of the COVID-19 pandemic. This includes cooperatives and non-profit organizations. Businesses which started operating between March 1 and October 31, 2020, are also eligible for this grant.
Alberta Small Business Support
This program provides advice, coaching, and information on COVID-19 resources and supports from Business Link, a non-profit organization funded jointly by the Government of Alberta and the Government of Canada.
Alberta Reduced Corporate Tax Rates
The province of Alberta lowered Alberta’s general corporate income tax rate to make it at least 30% lower than any other provincial rate. Additionally, the Innovation Employment Grant, recently announced as part of Alberta’s Recovery Plan, will complement the Job Creation Tax Cut by targeting small and medium-sized companies in the early stages of operation.
Both measures support the development of new products and ideas, but a low general corporate tax rate also provides a strong incentive to commercialize products in Alberta. It also encourages diversification as it provides more benefits to companies outside the resource sector. As well as adding an extra incentive to invest and grow in Alberta.
British Columbia (BC)
The following BC business support programs are offered to assist businesses with the effect of the pandemic.
Accelerating Manufacturing Scale-Up Grant Program
This program provides funding to eligible businesses to help them adjust to the economic changes created by the COVID-19 pandemic. Grant applications will be accepted between April 15 and May 31, 2021.
Small and Medium-Sized Business Recovery Grant
The BC government recovery grant invests up to $300 million in targeted financial support for some of the hardest-hit businesses in BC that employ between two and 149 BC. residents and have experienced declines in revenue since March 10, 2020. Grants of $10,000 to $30,000 are available. The application deadline is August 31, 2021.
3. Support for the Technology Sector
The Federal Government in Canada has provided $2.95 million in funding to help businesses in BC’s technology sector cope with the impact of COVID-19. The funding is being delivered through the BC Technology Sector Resiliency Program. This program was developed by Innovate BC in partnership with the BC Acceleration Network (a provincial network of business accelerators and incubators).
The program expands existing advisory services and resources to support tech entrepreneurs starting and scaling up their businesses. The program places a special focus on training, advice, and resources dedicated to helping BC businesses recover from the impact of COVID-19.
Manitoba
The Manitoba government will be helping connect, inform, and guide businesses affected by COVID-19 with Manitoba business support programs via a call center.
Manitoba Call Center to Connect Employers with Support Programs
Businesses are advised to contact the call center to discover their eligibility for business support programs in Manitoba. One of the key programs the province is providing is Tax and Fee Deferrals until October 1, 2022.
Newfoundland and Labrador
The following Newfoundland and Labrador business support programs are offered at a provincial level for businesses affected by COVID-19.
Waiver or Deferral of a Variety of Business-related Fees
To assist the businesses in Newfoundland and Labrador during the COVID-19 global pandemic, the provincial government announced the deferral or waiver of several fees and steps to reduce the regulatory burden. The deferral of more than $6 million in fees will help ease some of the operational pressures facing businesses and free up cash flow during these uncertain times.
New Brunswick
The following New Brunswick business support programs are offered at a provincial level for businesses affected by COVID-19.
Support for Small Businesses via a Non-repayable Grant of up to $5,000
This grant will be available for small businesses that have been subject to Orange or Red alert level measures for at least one week between Oct. 10, 2020, and March 31, 2021.
UPDATE: Applications for the Small Business Recovery Grant opened on February 2, 2021.
UPDATE: On March 2, 2021, the government announced an expansion to eligibility for the grant program. Under the new expanded criteria, tourism operators are now eligible within all zones in the province. Non-essential retail businesses are eligible if they were in a zone that experienced a lockdown.
Deferral of Interest and Principal Payments on Provincial Loans for up to Six Months
On a case-by-case basis, this assistance is available to any business that has a loan with an existing Government of New Brunswick department. The deferral can be requested by contacting the department that issued the loan.
Providing Working Capital Support to Small Businesses via Loans of up to $100,000
Small business owners impacted by the COVID-19 pandemic can apply for working capital loans up to $100,000 through the NB Small Business Emergency Working Capital Program. This loan is accessible to small businesses employing 1 to 49 employees, including sole proprietors/self-employed, with sales of less than $10 million in the most recent fiscal year.
Providing Working Capital to Mid-to-large Employers via Working Capital over $100,000
Opportunities New Brunswick is making available working capital loans of over $100,000 to assist employers to respond to the challenges associated with COVID-19.
Nova Scotia
The following Nova Scotia business support programs are offered at a provincial level for businesses affected by COVID-19.
Small Business Loan Guarantee Program
Loans may be granted for a term of up to 10 years. The maximum guarantee supplied by the Province of Nova Scotia will be 90% of the value of all term loans. The guarantee will remain at 75% on lines of credit but a 90% guarantee may be available to those that qualify under our special financing streams.
Investments in New Businesses and Innovation
Nova Scotia is investing $750,000 to help start-up businesses seize opportunities emerging from COVID-19. Business incubators Volta, Ignite and the Organization for Nova Scotia Innovation-Driven Enterprise (ONSIDE) will receive funding to help new businesses get off the ground. Funding through Innovacorp will support start-up activities in Cape Breton.
Business incubators help start-up companies through a variety of support services, including physical space, access to technology, coaching, shared services, and networking. Volta, Ignite, and ONSIDE will also provide programs and supports focused on issues and challenges raised by the COVID-19 pandemic. The funding agreements are for one year, ending June 2021.
Ontario
The following Ontario business support programs are offered at a provincial level for businesses affected by COVID-19.
Financial Advice and Training for Small Businesses
The Ontario government has invested over $2.2 million through the Ontario Together Fund to provide small businesses with free, tailored financial advice and online training to help them make informed financial decisions.
Increasing the Employer Health Tax Exemption to $1 Million
In Ontario, the employer health tax exemption has been increased to $1 million from the previous $490,000, retroactive to January 1, 2020. Only the exemption amount is changing; eligibility for the tax exemption, tax rates, and everything else remains the same.
Digital Main Street (DMS) Platform
The DMS platform is a $57 million program that assists Ontario businesses to create and enhance their online presence. The program aims to generate jobs for more than 1,400 students. Through the Digital Main Street platform, businesses can take advantage of three new programs to support their digital transformation.
Through a $2,500 grant administered by the Ontario BIA Association, small businesses will be able to adopt new technologies and embrace digital marketing. By leveraging teams of digital marketing professionals and talented students, these firms will be able to:
Create new online business models
Develop and implement digital and e-commerce marketing strategies
Maximize digital tools, platforms, and content.
In addition, the Recovery Activation Program operated through the Toronto Region Board of Trade, will help businesses grow and digitize their operations. Key areas include custom consulting sessions, online resource sharing, learning webcasts, and business planning. The program is offered at no cost to businesses.
Ontario Extends Temporary Layoff Provisions
The Ontario Government announced further amendments to extend the maximum periods of temporary layoffs to July 3, 2021, before they could be deemed to be terminations under the Employment Standards Act, 2000. The goal is to preserve jobs longer and avoid costly termination and severance costs. For some businesses, this could be the difference between survival and closure.
Prince Edward Island
The following Prince Edward Island business support programs are offered at a provincial level for businesses affected by COVID-19.
Tax Relief for Businesses in Prince Edward Island
Effective January 2022, the small business tax rate in Prince Edward Island will be reduced by 1%.
Wage support under the Jobs for Youth program
The Jobs for Youth Program supports non-profit organizations, municipalities, and public and private businesses with funding to create summer jobs for students aged 15-29 who plan to return to school in the following school year. Information found here.
Emergency Working Capital Financing to Small Businesses
Eligible businesses in Prince Edward Island can receive a working capital loan of up to $100,000 with a fixed interest rate of 4% per annum to be used to assist with fixed operating costs (including payroll, rent, utilities, etc.) with principal and interest payments deferred for a minimum of 12 months.
Québec
The following business support programs are offered at a provincial level in Québec for businesses affected by COVID-19.
Assistance to Businesses in Regions on Maximum Alert (AERAM)
As of May 15, 2021, companies that apply the AERAM may be eligible for loan forgiveness to cover the fixed costs disbursed during:
The three months preceding the month in which the application is submitted
During the month of filing of the request as well as during the following months
For these requests, the amount of the loan granted will be calculated to cover the working capital needs not exceeding June 30, 2021. Depending on the evolution of health measures, this period could be extended.
Further Support for Businesses in Québec
To facilitate a return to normalcy, businesses eligible for the (AERAM) component under the Temporary Concerted Action Program for Enterprises (PACTE) or the Emergency Assistance program small and medium-sized enterprises (PAUPME) will be able to obtain the following additional support:
For businesses closed for 90 days or less, the maximum additional amount that may be received is $15,000 per establishment. This additional support must be claimed for fixed costs disbursed the month following the reopening of the targeted business.
For businesses closed for a period of more than 90 days, the maximum additional amount that may be received corresponds to $ 30,000 per establishment or $ 15,000 per month. This additional support must be claimed for fixed costs disbursed two months following the reopening of the targeted business.
Emergency Assistance Program for Small and Medium-Sized Businesses (PAUPME)
PAUPME provides support to eligible businesses who are experiencing financial difficulties due to COVID-19 and who need cash under $50,000. To be eligible, the business, cooperative or non-profit must:
Have been in business for at least one year
Be temporarily closed or likely to close
Be in the state of maintaining, consolidating, or reviving its activities, and have demonstrated a cause and effect relationship between their financial or operational problems and the COVID-19 pandemic
The financing is intended to address liquidity needs and assistance will take the form of a loan or loan guarantee of up to $50,000.
Saskatchewan
The following business support programs are offered by the Province of Saskatchewan to assist businesses with the effects of the pandemic.
Reduced Taxes for Small Businesses
The government has introduced legislation to reduce the corporate income tax rate’ corporate income tax rate from 2% to 0 effective October 1, 2020. Beginning July 1, 2022, the small business tax rate will move to 1% and increase to 2% on July 1, 2023.
Saskatchewan Invests $15 Million in Agtech
The Government of Saskatchewan will provide $15 million to develop new technologies in agriculture to accelerate the province’s economic recovery from COVID-19. The funds will be invested through Innovation Saskatchewan for agtech companies requiring venture capital to develop past the start-up phase and scale up their business operations and manufacturing.
Check-in Weekly on the Provincial COVID-19 Canadian Business Support Programs for Eligibility
As the pandemic continues, some programs are terminated and other programs are introduced. We encourage you to check the list of active programs weekly to determine whether your business may have access to further support as changes are made. If you would like more information on the Canadian business support programs, reach out to Inna.
Disclaimer: The information provided here does not, and is not intended to, constitute legal advice. Instead, the information and content available are for general informational purposes only.