COVID-19: Support Grants for Ontario Small Businesses

*This blog was updated on May 14, 2021. 

The Ontario government is offering additional financial support to businesses affected by provincial public health measures. If you are an Ontario small business, you can apply online to any of these relief programs:

Ontario Tourism and Travel Small Business Support Grant

This grant provides one-time payments of $10,000 to $20,000 to eligible small businesses in the tourism and travel sector.

The funds are meant to help eligible small businesses recover from the economic impact of the pandemic and create and protect jobs.

Please note that businesses that received the Ontario Small Business Support Grant (OSBSG) are not eligible for this new grant.

How may I use these funds?

Successful applicants may use the grant in whatever way that makes the most sense for their business. For instance, some businesses could use the funds to pay staff wages, while others can use it to invest in reviving their business.

What is the deadline to apply for this grant?

The grant program will accept applications till Friday, June 25, 2021, at 11:59 pm EDT.

How do I know if I am eligible for this grant?

Businesses eligible for the Ontario Tourism and Travel Small Business Support Grant must:

  • Not have received the Ontario Small Business Support Grant
  • Have 99 or fewer employees on April 30, 2021
  • Have a revenue decrease of at least 20% if the business started or was acquired before July 2, 2019. If you don’t meet this criterion, you must compare the total revenue for three consecutive months in 2019 with the same three consecutive months in 2020.
  1. A business that you began or acquired after July 1, 2019 and before 2021 will receive the minimum $10,000 if it meets all the eligibility criteria.
  2. A business that you started operating or acquired in 2021 is not eligible for the grant.
  • Operate a tourism or travel business in Ontario from the list below that started operating before 2021 and was running on April 30, 2021:
  1. amusement parks & waterparks
  2. bed and breakfasts that report their revenue as business income for income tax purposes
  3. cottages or cabins that report their revenue as business income for income tax purposes, and not as rental income
  4. fireworks display services
  5. hotels, motels, resorts
  6. hunting and fishing camps
  7. indoor attractions mainly for tourists (for e.g., haunted houses, funhouses, and mazes)
  8. mobile food services (for e.g., chip wagons, food trucks, ice cream trucks)
  9. observation towers
  10. operators of rides, games and other activities that are operated on a concession basis at waterparks, amusement parks, carnivals, fairs, and festivals
  11. outdoor adventure operations without accommodation
  12. recreational and vacation camps (for e.g., overnight summer camps)
  13. recreational rental services (for e.g., bicycle rental, canoe/kayak rental, houseboat rental)
  14. travel agents and wholesalers registered with the Travel Industry Council of Ontario (TICO)
  • If the business is affiliated with one or more other businesses on April 30, 2021, the following rules also apply:
  1. the business doesn’t qualify for the grant if it or any of its affiliated businesses received an Ontario Small Business Support Grant
  2. the employee count on April 30, 2021 and the calculation of the revenue loss are determined using the total number of employees and revenues of the business and all affiliated businesses
  3. A business is considered affiliated with another business if:
  • one of the businesses controls the other business directly or indirectly, or
  • each business is controlled directly or indirectly by the same business, individual, or group of individuals or businesses

What information would I need to apply?

You will need your business and banking information, including:

  • General business information (for e.g., CRA business number)
  • Business bank account information (for e.g., banking institution, account number, branch code)

You will also need your revenue figures, number of employees, list of affiliated businesses (if applicable).

To apply, also have on hand electronic copies of federal, provincial, and municipal licences and permits needed to operate the tourism or travel business (if applicable).

Please refer to the grant’s user application guide for more details.

How long would it take to receive the funds?

Once your application is approved, it should take about 10 business days for you to receive the payment.

Property Tax and Energy Cost Rebate Grants

All small businesses eligible for the Ontario Small Business Support Grant are also eligible for these property tax and energy bill rebates.

In addition, businesses are eligible if they:

Read our blog on the Property Tax and Energy Cost Rebate Grants for more details.

COVID-19 Energy Assistance Program for Small Business

This program helps Ontario businesses struggling to pay their energy bills due to COVID-19. You can apply through your utility provider.

Read our blog on COVID-19 Energy Assistance Program for Small Business for more details.

Please note that the Ontario Small Business Support Grant and the Main Street Relief Grant for PPE discussed below closed for applications on April 7, 2021, and March 31, 2021, respectively. 

Ontario Small Business Support Grant

This new grant helps small businesses that are required to close or significantly limit services due to the Provincewide Shutdown effective December 26, 2020. Applications to the program closed on April 7, 2021.

On March 24, 2021, the Ontario government had announced a second round of support through this program. Eligible recipients who have already received funds in the first round, will be entitled to receive a second payment of the same amount. They don't have to re-apply to get this additional funding.

What funds can businesses receive under this grant?

The funding starts at $10,000 for all eligible Ontario businesses and can go up to a maximum of $20,000. This grant is meant to help businesses cover revenue decline expected due to the Provincewide Shutdown.  

Are there any restrictions on how I may use these funds?

Businesses are free to use the funds in the manner that makes most sense for them. For instance, you could use the money to pay staff wages, or use it to maintain your inventory.

How do I know if I am eligible?

To be eligible for the grant, a small business must:

  • Be required to close or restrict services due to the Provincewide Shutdown, which came into force at 12:01 am on December 26, 2020
  • Have fewer than 100 employees at the enterprise level
  • Must have experienced at least 20 per cent revenue decline comparing April 2020 to April 2019 revenues.

New businesses set up since April 2019 are also eligible if they meet the other eligibility criteria. Small businesses not in operation in April 2019 or April 2020 will be able to select alternative months for comparing revenue loss through the application portal.

What businesses are not eligible?

Businesses already required to close prior to the introduction of modified Stage 2 measures on October 10, 2020 are not eligible.

This also includes essential business allowed to operate with capacity restrictions (e.g., discount and big box stores selling groceries, supermarkets, grocery stores, convenience stores, pharmacies, and beer, wine, and liquor stores).

What documents do I need to apply?

To be eligible, your business must have a business number as provided by Canada Revenue Agency. In case you don’t have one, you’ll need to apply for a business number to be able to continue with your application.

Indigenous-owned small businesses without a business number can still apply using a dedicated application form on the application portal.

You’ll also need to have information about the revenue decline and number of employees available. You would be required to attest to the information provided in your application.

How soon should I receive the grant?

If you’re eligible, you can expect to receive the funds within approximately 10 business days of submitting your completed application.

However, applications with incomplete or incorrect information, or those needing additional review, will experience a delay.

Main Street Relief Grant for Personal Protective Equipment (PPE)

Under this program, eligible small businesses in Ontario can receive one-time grants of up to $1,000 for PPE costs. Applications to this program closed on March 31, 2021.

How do I know if I am eligible?

To be eligible, your business must have 2 to 19 employees. It must be in one of the following sectors:

  • Personal and laundry services
  • Gyms and yoga studios
  • Retail
  • Accommodation and food services
  • Repair and maintenance
  • Arts, entertainment and recreation

What documents do I need to apply?

To apply, you'll need:

  • General business information, such as your business number, and banking information
  • Receipts or proof of costs for PPE purchased since March 17, 2020.

What kind of PPE is covered under this grant?

PPE could include:

  • Gloves, gowns, face shields, eye protection, masks, sanitizer, sanitizing wipes
  • Thermometers, temperature monitors or cameras
  • Physical changes, including the installation of hand sanitizer stations and plexiglass dividers
  • Signs to guide or inform customers and employees.

Need support navigating business issues related to the COVID-19 pandemic?

Our experts can help you develop company policies as well as with any other HR, health and safety, or employment advice you may need. See how we have helped other small and medium businesses get their business compliant with provincial legislation.

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