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The Alberta government has expanded a grant program for small businesses that suffered major financial failure during the pandemic.
Minister of Labor, Economy and Innovation Doug Schweitzer said the province lowered the threshold for small and medium-sized enterprises to qualify for a grant of up to $ 5,000.
The government will also offer a second round of grants for affected businesses and begin taking applications within weeks, he said Monday.
“There are some promising signs … about vaccines and treatments that are out there that will hopefully be available early next year,” Schweitzer told lawmakers. “For all those Albertans who are tired and frustrated, small business owners, we will be there with you, we will work with you to overcome this.”
Companies with fewer than 500 employees previously qualified for aid if they lost more than 50% of pre-pandemic revenue. That bar will now drop to 40%, and companies that previously applied and now meet the new criteria will receive help retroactively, said Justin Brattinga, Schweitzer’s press officer. Companies have until Tuesday to apply for the first round of grants.
Within weeks, the government will accept applications for a second round of grants until March 31, 2021. Schweitzer said the move was necessary given new restrictions placed on some companies earlier this month to prevent the spread of the coronavirus.
Until November 27, group fitness classes are banned and bars must stop serving liquor by 10pm and close by 11pm in parts of Alberta with higher COVID-19 case rates. These include the Edmonton area, the Calgary area, Grande Prairie, Lethbridge, Red Deer, and Fort McMurray.
Companies that were eligible during the first round of grants can apply for a second grant, Schweitzer said.
So far, the government has spent about $ 62 million of the program’s $ 200 million budget, Brattinga said. He said 16,513 businesses, cooperatives, and non-profit organizations have qualified for the grants so far and that those businesses employ more than 164,000 workers.
Another 1,727 applications are currently under review, he said.
So far, most applications have come from the retail, personal services, accommodation and catering services, and health and social care sectors.
Organizations can use grants to pay rent, employee wages, replace inventory, or purchase supplies to prevent coronavirus transmission, including personal protective equipment and barriers.
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