Alberta brings back business grants

Alberta's government is relaunching its previous support grant to help small and medium businesses through the third COVID-19 wave.

On Tuesday, Premier Jason Kenney announced a new $350-million phase of the province's Small and Medium Enterprise Relaunch Grant (SMERG), reviving a program that began late last year and expired in March.

Alberta small and mid-sized businesses that have seen revenues decline by at least 30 per cent because of public health restrictions will be eligible to receive up to $10,000 through a new round of the relaunch grant, in addition to $20,000 made available in two previous phases.

Hotels, taxis and ride-share operators who have been hit hard by the latest COVID-19 restrictions will be eligible for the new round of grants.

Kenney said with this round of funding, Alberta will have offered more business grant support than in any other province on a per-capita basis.

“We are going full bore,” he said. The latest SMERG will replace the previously-announced Enhanced

COVID-19 Business Benefit, which was planned for rollout in April.

That benefit would have doubled the qualification threshold, was estimated to cost only $120 million, and was criticized for being difficult for some to access.

“That program was designed at a time when we were beginning to relax restrictions and 99 per cent of businesses were able to operate, but there were still a small percentage who had largely been closed for the better part of the year,” said Kenney.

Kenney said now that more operations are affected by public health restrictions, the government opted to go back to a broader program with a lower threshold to qualify under SMERG.

The grant can be used by businesses to cover costs related to COVID-19, such as cleaning supplies or masks, to pay rent, wages or replace inventory, or to expand online offerings.

“We want them to be able to do that immediately,” said Kenney.

Jobs and Economy Minister Doug Schweitzer said Tuesday the application portal is expected to be open next week, and the government could have funding go out to successful applicants by the end of the month.

Ken Kobly, president and CEO of Alberta Chambers of Commerce, said in a government release that not being able to qualify for relief programs was frustrating for operators who started ventures early on in the pandemic, and the much-needed program announced Tuesday will help.

Janet Riopel, president and CEO of the Edmonton Chamber of Commerce, said the funding can't come soon enough.

“Businesses have already faced over a year of tremendous revenue shortfalls and they will need continued help,” she said in the release.

`BARELY SCRATCHES THE SURFACE': NDP

NDP Leader Rachel Notley said Tuesday the relaunched program makes many changes that businesses have been asking for, but doesn't go far enough, especially to help employees who are falling through the eligibility cracks of federal support programs.

“It barely scratches the surface of what's needed to help these small businesses through this third wave,” said Notley, adding Ontario has offered small businesses up to $40,000. She added Kenney should have been ready to announce the retooled grant when he announced restrictions.

“Instead, they ripped up the old program, (and) they spent a week debating what to do as a result of bringing in restrictions that they should have known full well were coming,” said Notley.

Last week, the Opposition NDP called for $500 in direct cash support for affected workers and up to $25,000 in new grants for businesses that have seen revenue drop by at least 30 per cent.

Previous rounds of funding saw nearly 100,000 applications submitted and more than $650 million in support approved.

Businesses have already faced over a year of tremendous revenue shortfalls and they will need continued help.