If your business has been impacted by the COVID-19 pandemic, you can apply for the Small and Medium Enterprise Relaunch Grant.
The program offers financial relief to Alberta businesses, cooperatives, and non-profit organizations required to close or restrict operations, and that experienced a revenue decline of at least 30%, because of the pandemic.
How does the program work?
The Alberta government has pledged up to $500 million in funding for the program. The grant program offers two payments to eligible applicants, with funding of up to $20,000 available per eligible application.
The amount for the first payment is calculated based on 15% of the eligible organization’s pre-COVID-19 monthly revenue up to a maximum of $5,000 per applicant.
Each applicant will get one first payment representing 15% of one month’s worth of pre-COVID-19 revenue up to a maximum of $5,000.
Applicants can choose either April or May 2020 to prove their 30% revenue reduction.
A second payment is available to applicants in areas on the provincial watch list that had to curtail operations because of new public health orders in force from November 6, 2020 and later.
The second payment is valued at three times the amount of the approved first payment, up to a maximum of $15,000.
How can I use these funds?
Eligible applicants can use these funds according to their needs. They can use the grant to cover costs incurred due to new public health measures. Or for their relaunch costs, such as implementing measures to reduce risk of virus transmission, which could include:
- Physical barriers
- Buying personal protective equipment and disinfecting supplies
- Paying rent and employee wages
- Replacing inventory and more
How do I know if I am eligible?
Businesses, cooperatives, and non-profit organizations that had to close or limit operations due to public health orders may be eligible.
Applicants will have to show a revenue reduction of at least 30% in April and/or May 2020 due to COVID-19 public health orders. You can read more on the eligibility requirements here.
New businesses that began operations between March 1 and October 31, 2020, and fulfill the updated 30% threshold can apply for the grant starting February 4, 2021.
How to apply?
All applications must be submitted through the online application portal. Applicants who have already applied for their first payment will have the option to fill out and apply for the second payment. The application for the second payment will be accessible through the online application portal as an add-on to the first submitted application. You can also watch a video on how to fill out a new application.
Application intake will remain open until March 31, 2021.
How soon should I receive the grant?
You should receive the payment within 10 business days after you submit a completed application. Approved applicants will receive funds via Electronic Fund Transfer directly into their bank account.
The grant is a taxable benefit and must be declared on your annual returns.
In what cases may a business have to pay back the funding?
All applications and grants are subject to a potential audit by the Alberta government, or their authorized representatives, upon reasonable notice to the recipient.
During the audit, you may be asked to produce copies and extracts of your records and books of account.
If your records or accounts are found inadequate to allow a determination of eligibility for the program, you will have to pay back the grant.
Need support navigating business issues related to the COVID-19 pandemic?
Our experts can help you develop company policies as well as with any other HR, health and safety, or employment advice you may need. See how we have helped other small and medium businesses get their business compliant with provincial legislation.