The Sooke Region Chamber of Commerce hosted an informal information session on the Small and Medium Sized Business Recovery Grant Program featuring a couple of savvy representatives from the Province to discuss this particular grant offering.
- What are the recent changes to this grant program?
- What are the tax implications?
- How are businesses using the funds?
- How long does it take to complete the application?
Watch the Youtube video for FREE MONEY: Provincial business recovery grant information session here:
Guests from the Province
Morningstar Pinto: Morningstar is a Director of Outreach and Engagement with the Ministry of Jobs, Economic Recovery and Innovation. She is currently supporting StrongerBC projects for the ministry and working to amplify and promote the Small and Medium Sized Business Recovery Program. Find Morningstar at:
Jon Cruz: Jon is a CPA, CGA and the Manager of Finance and Administration with the Ministry of Jobs, Economic Recovery and Innovation. He is currently supporting Stronger BC and leading the adjudication team for the Small and Medium Sized Business Recovery Grant Program. Find Jon at:
One question arrived late, and the guests did not have time to address this. An attendee commented, “Wonder about the Arts and Arts Venues that are not non-profit?” and we put that question to our guests. Morningstar provided the following answer:
– Not for profits aren’t currently eligible for the business grant program. We’ve been hearing a lot of feedback about not for profits, and are bringing it back to our executive team. My understanding is government writ large is looking at ways to better support not for profits, as they are flagging that a lot of the programming isn’t available for them.
In the interim, here is a bit of info shared by our small business branch team that may be of use to the person inquiring:
- Canada Emergency Business Account (CEBA):
- Provides interest-free loans of up to $60,000 to eligible non-profit organizations.
- Repaying the loan on or before December 31, 2022 results in a loan forgiveness amount of up to $20,000.
- Applicants who have received the previous $40,000 CEBA loan may apply for the recent $20,000 expansion.
- All applicants have until March 31, 2021 to apply for the $60,000 CEBA loan or the $20,000 expansion.
- More information on CEBA is available at: https://ceba-cuec.ca/
- Regional Relief and Recovery Fund (RRRF) – Community Futures Stream:
- Social enterprises located in rural communities may be eligible for interest-free loans of up to $40,000, with up to $10,000 forgivable if repaid before December 31, 2022 through Community Futures.
- More information on this program is available at: https://www.wd-deo.gc.ca/eng/20065.asp
- Canada Emergency Rent Subsidy (CERS) & Lockdown Support:
- On November 23, 2020, applications for CERS and the Lockdown Support opened.
- CERS provides a rent subsidy directly to eligible charities and non-profit organizations until June 2021 that have suffered a revenue drop.
- For the three periods from September 27, 2020 to December 19, 2020, a rent subsidy up to 65% of eligible expenses is available.
- Organizations temporarily shut down by a mandatory public health order may be eligible for the new Lockdown Support, which provides a rent subsidy of 25%, in addition to the 65% subsidy.
- On November 30, 2020, the federal government announced that it intends to extend these subsidy rates for an additional three periods until March 13, 2021.
- More information on CERS is available at: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-rent-subsidy.html
- Canada Emergency Wage Subsidy (CEWS):
- Until June 2021, a base subsidy of employee wages is available to non-profit organizations that are experiencing a decline in revenue, with the subsidy amount varying depending on the scale of revenue decline.
- A top-up subsidy of up to an additional 25% is available for organizations that have been most adversely affected by COVID-19.
- The CEWS maximum subsidy rate has increased to 75% of eligible wages until March 13, 2021.
- More information on CEWS is available at: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html
- B.C. Increased Employment Incentive:
- Offers a refundable tax credit for all private sector B.C. employers, including most charities and non-profit organizations, who increase their B.C. remuneration by creating new jobs or increasing the pay of their existing low- or medium-income employees over the last quarter of 2020 (October to December).
- More information on the incentive is available at: https://www2.gov.bc.ca/gov/content/taxes/employer-health-tax/employer-health-tax-overview/increased-employment-incentive
- Employment Insurance (EI) Work Sharing Program:
- Provides EI benefits to workers who agree to reduce their normal working hours as a result of developments beyond the control of their employers.
- Non-profit employers experiencing a shortage of work due to COVID-19 are eligible to access the program.
- More information on the program is available at: https://www.canada.ca/en/employment-social-development/services/work-sharing/notice-covid-19.html
Another NEWLY ANNOUNCED Provincial Grant
NOTE: Morningstar referenced this newly announced grant, here’s where you can learn more about it.
The province also announced another grant yesterday for up to $7500 that would help businesses start and/or develop their online presence. Information on that grant is available here. Note that there’s a list of criteria to apply, including that your business has “generated sales of more than $30,000 in the past year (in 2019, or in the year preceding the application).”