The Ontario Small Business Support Grant is designed to assist Ontario’s small businesses that must shut down or severely curtail operations as a result of the province-wide shutdown that will take effect on December 26, 2020.
But that’s not all about the Ontario Small Business Support Grant. Let’s dive deep into the topic to know all about it.
1. Ontario Small Business Support Grant
Businesses that qualify may earn from ten thousand dollars to twenty thousand dollars each.
The grant will offer businesses funding in excess of $20,000 to help with anticipated revenue losses brought on by the province-wide closure, with funding beginning at $10,000 for all qualified businesses.
The assistance will be available for businesses to use however provides the most sense to them. For instance, some companies will use the assistance for paying employee wages, whereas other companies will require it to keep their inventory.
Eligible businesses may involve the ones in less compared to 100 staff which had been needed for close or substantially limit amenities owing to a provincewide closure which arrived to impact at 12:01 a.m. in the month of December 26, 2020, as well as encountered a least of a twenty earnings decline when contrasting the month of April 2020 for April 2019 every month revenues.
For small companies that are not open in April 2021 or April 2022, the online portal will offer alternate income decline comparator months. The Ontario government retains the right to impose any terms and conditions in connection with the distribution of money under this program that it considers reasonable.
The Ontario Small Business Support Grant serves as a supplemental grant that is not a requirement. As a result, there is no assurance that a candidate is going to be accepted for funding even if their application is full and they meet all program requirements.
Businesses are required to divulge and vouch for the following information:
- Legal Business Name; CRA Business Number (If you do not already have a CRA Business Number, kindly apply here: Create a program account with the Canada Revenue Agency or a company number at Canada.ca).
- Business type, revenue, number of workers, bank account number, name and address of the financial institution, financial institution number, branch or transit number, and account type are all required.
- Additionally, applicants must recognize and concur with certain conditions and limitations pertaining to funding through this program. Anyone who has unjustly received funding from this program must instantly repay the money they received in full.
3. Overview of Eligibility
When comparing monthly revenue between April 2021 as well as April 2022, applicants must show they witnessed a revenue decline of at least 20%. This time frame was chosen because it represents how the public health initiatives will affect businesses in the spring of 2020 and does so by reflecting the effect of those initiatives. For small companies that won’t be operating in April 2021 or April 2022, the application portal will offer alternate revenue decline comparator months.
A company must meet the following criteria in order to be eligible for the grant:
- Be forced to stop or severely limit operations due to the province-wide shutdown beginning at midnight on December 26, 2020.
- Had 99 or fewer employees than the enterprise level.
4. What distinguishes an “Enterprise” from an “Affiliated Enterprise”?
An enterprise is any form of organization that conducts business in Ontario, including corporations, unincorporated businesses, partnerships, charities, and non-profits.
An enterprise is affiliated with a different company if:
- A few of the businesses regulate the additional company right away or subsequently in all manner.
- Every company is regulated right away or subsequently in all ways by an identical company, person, or group of people or enterprises.
5. What does this Imply for My Company and Its Grant Application?
A business owner must have been in charge of at least one firm on or before December 24, 2020, in order to be eligible for the grant. The business is not qualified for this grant if it was dormant on December 24, 2020.
If an organization meets all other requirements, it may submit an application for the grant in this scheme even if it did not have more than 100 employees on April 30, 2019, and was not associated with any other organizations.
Neither the enterprise nor one of its affiliates have been eligible for a grant under this program if the enterprise had all affiliates on April 30, 2019, and the enterprise, together with its affiliates, enjoyed 100 or more workers on that date.
The guidelines below are applicable to businesses with affiliates that are not disqualified from applying for financing as stated above.
The Ontario Small Business Support Grant was the main topic of discussion.
Check out How to Register a Business in Alberta: 3 Easy Steps to Follow if you want to register a business in Alberta.
Queries and Answers
The most common inquiries about the Ontario Small Business Support Grant are listed below in the brief form:
Q1. Is the Ontario Small Business Grant refundable?
Additionally, applicants must recognize and concur with certain conditions and limitations pertaining to funding through this program. Anyone who has unjustly received funding from this program must instantly repay the money they received in full.
Q2. Do grants have a return policy?
In contrast to a gift, which does not require repayment, a loan does. In essence, grants are gifts. To put it another way, they are not refundable. Grants may be given by trusts, companies, or governmental organizations to individuals, organizations, businesses, or charitable organizations.
Q3. Is Canadian funding money subject to taxes?
If you are regarded as a full-qualifying student over 2021, 2022, or 2023, and you earned scholarships, fellowships, or bursaries for post-secondary education in 2022 for your enrollment in a program, these payments are not subject to taxes.
Q4. Are scholarships in Canada free?
Grants are free funds that can also aid in paying for your scholastic expenses. Except in cases where your eligibility alters, grants are not repaid.