Ontario Government Grants for Small Businesses Affected by COVID-19

The Ontario government has implemented targeted relief measures to support businesses and individuals impacted by the ongoing COVID-19 pandemic. As part of these initiatives, the government is introducing a $10,000 grant specifically designed to assist eligible businesses that face challenges due to the transition to Step Two of the Roadmap to Reopen. Additionally, the government is providing further support in the form of cost relief for businesses, workers, and families.

This new financial relief program aims to provide assistance to small businesses affected by the COVID-19 pandemic. If you own a qualifying small business, you have the opportunity to apply for Ontario government grants tailored to support your specific needs.

Business Expense Rebate Program: Supporting Businesses Impacted by COVID-19 Measures

In response to the Omicron variant of COVID-19, the Ontario government has introduced the Ontario Business Expense Rebate Program. This program aims to provide assistance to businesses that have been most severely affected by provincial public health measures.

The Ontario Business Expense Rebate Program officially opened on January 18, 2022. Eligible businesses that have been mandated to close or operate at reduced capacity will receive rebate payments to help cover a portion of their property tax and energy costs incurred while complying with these measures.

For smaller retail stores required to reduce capacity by 50%, a rebate payment equivalent to 50% of their costs will be provided. Additionally, businesses compelled to close indoor activities, such as restaurants and gyms, will receive a rebate payment equal to 100% of their costs.

To ensure support reaches businesses in need, eligible companies will receive retroactive payments dating back to December 19, 2021, when the initial public health measures were implemented. The Ontario Business Expense Rebate Program aims to alleviate financial burdens and assist businesses during this challenging period.

Eligibility Criteria for the Ontario Business Costs Rebate Program

The Ontario Business Costs Rebate Program extends its support to various types of businesses, including:

• Bars and restaurants
• Gyms and indoor sports and recreational facilities
• Retailers (non-grocery) with a total area of less than 50,000 square feet
• Grocery stores with a total area of less than 5,000 square feet
• Personal care services, such as hair salons and spas
• Indoor meeting and event spaces
• Places of worship
• Indoor concert venues and entertainment establishments like theaters, cinemas, casinos, and bingo halls
• Indoor sections of horse and car racing tracks
• Indoor clubhouses at outdoor recreational facilities
• Indoor museums, galleries, aquariums, zoos, technology centers, historical sites, and botanical gardens
• Indoor businesses related to tours and guide services
• Indoor training and educational centers
• Day camps and single-day camps for children
• Before-and-after-school programs
• Pet and veterinary services
• Oxygen bars, steam rooms, bathhouses, and sex clubs

To be eligible, businesses must provide evidence of expenses related to property tax and electricity payments. By meeting the specified criteria, businesses can avail themselves of the benefits offered by the Ontario Business Costs Rebate Program.

Also read: Demystifying Part XIII Income Tax

Ontario COVID-19 Small Business Relief Grant: Supporting Closures under Step Two

The Ontario COVID-19 Small Business Relief Grant provides assistance to businesses that are mandated to close as part of the modified Step Two of the Roadmap to Reopen. Eligible organizations will receive a grant of $10,000 to help alleviate the financial impact of the closures.

Which small businesses would qualify for this grant?

The grant is available to various eligible small businesses, including:

• Meeting or event venues
• Restaurants and bars
• Tour and guide services
• Indoor sports and recreational facilities
• Conference centers and convention centers
• Driving schools
• Before-and-after-school programs
• Performing arts venues and cinemas
• Museums, technology centers, galleries, aquariums, zoos, landmarks, historical sites, and botanical gardens.

Statement by Vic Fedeli, Minister of Economic Development:

“The backbone of Ontario’s economy is undoubtedly comprised of job creators, the entrepreneurial spirit, and small businesses. Unfortunately, many of these organizations have been severely impacted by the ongoing COVID-19 pandemic, with many still struggling to recover. Since the onset of the pandemic, we have provided exceptional support to businesses across the province. Through the new Ontario COVID-19 Small Business Relief Grant, our government aims to provide relief to hundreds of small businesses that play a crucial role in creating employment opportunities for hard-working Ontarians.”

In addition, the government is taking steps to enhance cash flows for Ontario businesses by introducing a six-month interest and penalty-free period starting January 1, 2022. This initiative allows Ontario organizations to defer most provincially administered tax payments, providing them with immediate financial relief and greater flexibility for long-term planning. Building on these efforts, the province is aligning with the federal government’s tax deferral measures to further assist small businesses impacted by public health regulations. This allows eligible small businesses to defer their HST remittances for a period of six months, providing them with additional financial support during these challenging times.

Also read: Be Prepared for Survivor Benefits from OAS and CPP

Statement by Lisa MacLeod, Minister of Heritage, Sport, Tourism, and Culture Industries:

“The pandemic has had a devastating impact on Ontario’s heritage, sport, tourism, and cultural industries, being among the first to be affected, hit the hardest, and anticipated to face a long road to recovery. It is crucial that we provide these sectors with the necessary support to ensure their survival. Together, these industries contribute over $76 billion to our economy and support countless jobs in communities across the province.”