Alberta’s Small and Medium Enterprise Relaunch Grant has reopened for Spring applications.
The program offers financial relief to businesses, cooperatives, and non-profits that closed or restricted operations, and that experienced a revenue decline of at least 30%, due to the pandemic.
The Grant closed applications for previous payments on March 31, 2021. But to help businesses affected by the public health measures introduced in April 2021, a Spring 2021 application period opened on April 23.
The Alberta government has set aside up to $350 million in funding for the Spring applications. Eligible organizations may get a one-time grant payment of up to $10,000, based on the revenue amounts indicated.
If you closed or restricted operations due to public health orders in effect from April 6, 2021, and later, you may be eligible to apply.
The program has expanded its eligibility criteria. Eligible organizations that began operations between November 1, 2020 and March 31, 2021 can also apply for this payment. Eligible taxicabs/rideshares and hotels would also be able to apply.
How does the program work?
If you started operations on or before February 29, 2020, you must prove a year-over-year revenue reduction of 30%. You do so by comparing a month between November 2019 and April 2020 to the same month in the following year.
New organizations that began operations between March 1, 2020, and March 31, 2021, must show a month-over-month revenue decline of 30% when comparing a month between April 2020 and April 2021 to a month between November 2020 and April 2021.
You can choose any month between the stated time frames to maximize your benefit payment and meet the required 30% revenue reduction.
Funds received from COVID-19 support programs must also be included in the revenue calculation for the chosen months. The permitted support programs are listed in the eligibility criteria.
Funds received from other supports must be prorated and added to the appropriate revenue month used in the application.
The Spring 2021 payment is calculated as 15% of the eligible organization's revenue from the chosen month to a maximum of $10,000.
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 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 closed or restricted operations due to public health orders in effect from April 6, 2021, and later, are eligible.
You can read more on the eligibility requirements here.
How to apply?
All applications must be submitted through the online application portal.
If you applied for a previous payment and are eligible for the Spring payment, you should apply under the same application number created for your previous application(s).
You can access the Spring application through the online application portal as an add-on to the previously submitted application(s).
What is the deadline to apply for the Spring 2021 payment?
The program will accept applications until 11:59pm on May 31, 2021, until the budget of $350 million is spent, or until otherwise announced.
How soon should I receive the grant?
Applications submitted for earlier payments of grant program will continue to be reviewed and processed. The Spring 2021 applications will be under review until earlier applications are processed.
The program seeks to clear applications and process payments within 14 business days following submission.
Approved applicants will receive funds via Electronic Fund Transfer 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 have to produce copies and extracts of your records and books of account.
If your records or accounts are inadequate to allow a determination of eligibility for the program, you will have to pay back the grant.
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