Small Business Assistance Program 2021 in Canada

Deadline: 15-Dec-21

Applications for Small Business Assistance Program are now open which is a short-term program offered by the Department of Industry, Energy and Technology (IET) to assist eligible small businesses and non-profit community organizations that experienced revenue losses, increased costs of health and safety protocols and business adaptations due to the COVID-19 pandemic.

Funding Information

• Small Businesses:
  • Eligible small businesses can apply for a non-repayable contribution of $2,500, $5,000, $7,500 or $10,000
• Non-Profit Community Organizations:
  • Eligible non-profit community organizations can apply for a non-repayable contribution of $5,000 or $10,000

Eligibility Criteria

• Small Businesses:
  • Eligible applicants will include small businesses engaged in commercial operations, are open to the public and/or have multiple employees on site at the operation, which have experienced revenue losses and/or increased costs due to health and safety protocols and business adaptations as a result of the COVID-19 pandemic. Eligible small businesses can apply for a one-time non-repayable contribution of $2,500, $5,000, $7,500 or $10,000 as defined by employment levels. Specifically:
    • Eligible businesses with 0-1 employee will receive $2,500 (businesses may be eligible for $5000 if they did not receive a contribution from the first round of SBAP);
    • Eligible businesses with 2-20 employees will receive $5,000;
    • Eligible businesses with 21-50 employees will receive $7,500; and
    • Eligible businesses with 51-99 employees will receive $10,000.
• Non-Profit Community Organizations:
  • Eligible applicants will include incorporated non-profit community organizations that operate physical premises open to the general public, have a reduction in non-government revenue since March 16, 2020 due to impacts from COVID-19, such as cancellation of major events, as well as increased costs of operating, such as adaptations required to physical space, online sales innovation and increased costs of health and safety protocols.
    • Eligible organizations with less than $100,000 in non-government revenue in 2019 will be eligible for $5,000.
    • Eligible organizations with greater than $100,000 in non-government revenue in 2019 will be eligible for $10,000.
    • An organization with less than $10,000 in non-government revenue in 2019 will be eligible to receive a contribution, which is calculated at 50 per cent of 2019 non-government revenue.

Additional Eligibility Criteria

• Eligible small businesses/community organizations that have received a contribution from the first round of the SBAP may be eligible if they have experienced a loss of sales (nongovernment revenue for community organizations) and/or increased costs in 2021, they meet the previously outlined criteria, and have a reasonable plan to continue operations in 2021 and/or 2022. Income statements should demonstrate a loss of sales in 2020 over 2019.
• Eligible small businesses/community organizations that have not received a contribution from the first round of the SBAP may be eligible if they have experienced a loss of sales (nongovernment revenue for community organizations) and/or increased costs since March 16, 2020, they meet the previously outlined criteria, and have a reasonable plan to continue operations in 2021 and/or 2022. Income statements should demonstrate a loss of sales in 2020 over 2019.
• Corporations and sole proprietors/partnerships that are Newfoundland and Labrador owned and operated.
• Municipalities are not eligible.
• Applicants must have been in operation on or before March 16, 2020, with the exception of new start-ups.
• Prior to March 16, 2020, applicants were in a financial position to operate in 2020 and are able to provide a reasonable plan to continue operations in 2021 and/or 2022.
• New start-ups that were registered in 2019, 2020 or 2021 preparing to open in 2020 or 2021 may be eligible but must provide additional information (i.e. summary of expenses) for assessment purposes. Contribution amounts for new start-ups that are unable to provide 2020 gross sales or 2020 employee levels will be assessed based on gross sales for 2021, employee levels for 2021 and/or costs incurred to prepare for opening.
• In the event of businesses with less than $10,000 in annual gross sales or new start-ups with expenditures less than $10,000, the contribution rate will be calculated at 50 per cent of total sales or expenditures. In the event of community organizations with less than $10,000 in nongovernment revenue, the contribution rate will be calculated at 50 per cent of non-government revenue.
• If required, the corporation shall be incorporated in Newfoundland and Labrador, in good standing, and have its primary place of operations and headquartered in Newfoundland and Labrador.
• Applicants are eligible to receive one non-repayable contribution.
• Those that have accessed other provincial government COVID relief programs, such as the Tourism and Hospitality Support Program (THSP) or Artist Support Program, are not eligible.
• Applications will be processed on a first come, first served basis until December 15, 2021 (or earlier date if funds are exhausted).

For more information, visit https://www.gov.nl.ca/iet/small-business-assistance-program/