The provincial government will expand a grant that helps support small and medium businesses in the wake of further COVID-19 restrictions.
On Tuesday, the government announced it would expand the Small and Medium Enterprise Relaunch Grant, with a new lower threshold and increased grant amounts.
Doug Schweitzer, the minister of Jobs, Economy and Innovation, said up to 15,000 more businesses may be eligible for funding.
"We have reports saying that 40 per cent of these small businesses may not be able to turn the lights back on if we don't provide them with supports," Schweitzer said.
"That's the extent of what we're facing here in our province — 40 per cent may not come back, unless we step in and provide them with supports now."
The program will expand to include businesses that have experienced revenue losses of at least 30 per cent due to the pandemic, lowering the threshold from the former requirement of 40 per cent revenue losses.
Job creators that meet the program’s eligibility criteria can apply for 15 per cent of their pre-COVID-19 monthly revenue up to a maximum of $20,000 since the program launched.
Businesses will be eligible to apply for a second payment through the program, for a total of up to $20,000 in potential funding each, up from the original $5,000.
Businesses can use the funding however they choose to offset the costs they must face as a result of the pandemic restrictions. This includes the costs of implementing measures to prevent the spread of COVID-19, including PPE and cleaning supplies, as well as rent, employee wages, or replacing inventory. The funds can also be used to help businesses expand their online presence or e-commerce opportunities so that they can continue to serve customers.
The program originally launched at the end of June with a budget of up to $200 million. To ensure Alberta businesses have access to the supports they need, this budget was increased to $500 million. More program details, including updated eligibility criteria and how to apply for the second payment, will be outlined on the program web page when finalized. Applications will be open until March 31, 2021, unless otherwise communicated.
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