Ontario Small Business Support Grant | Practical Law

Ontario Small Business Support Grant | Practical Law

On December 21, 2020, the Ontario Government announced the Ontario Small Business Support Grant that will provide a minimum of $10,000, and up to $20,000, to assist small business owners that are required to close or severely restrict their operations due to the provincewide shutdown that began on December 26, 2020. Applications for the grant were open on January 15, 2021 using the Government of Ontario website. This legal update was originally published on December 24, 2020 and has been subsequently updated.

Ontario Small Business Support Grant

Practical Law Canada Legal Update w-028-9739 (Approx. 3 pages)

Ontario Small Business Support Grant

by Practical Law Canada Corporate and Securities
Published on 15 Jan 2021 • Ontario
On December 21, 2020, the Ontario Government announced the Ontario Small Business Support Grant that will provide a minimum of $10,000, and up to $20,000, to assist small business owners that are required to close or severely restrict their operations due to the provincewide shutdown that began on December 26, 2020. Applications for the grant were open on January 15, 2021 using the Government of Ontario website. This legal update was originally published on December 24, 2020 and has been subsequently updated.

Ontario Small Business Support Grant

On December 21, 2020, the Ontario Government announced the new Small Business Support Grant which will provide a minimum of $10,000, and up to $20,000, to assist small business owners that are required to close or severely restrict their operations due to the provincewide shutdown that began on December 26, 2020. Each small business will be able to use the assistance in whatever way makes most sense including support for paying wages or rent or maintaining inventory. Applications for the grant were open on January 15, 2021 using the Government of Ontario website.

Eligibility

Included are businesses that:
  • Are required to close or significantly restrict services beginning at 12:01 am, December 26, 2020, due to the provincewide shutdown.
  • Have fewer than 100 employees.
  • Have experienced at least a 20% decline in revenue in April 2020 compared to April 2019.
Businesses that are not eligible include essential businesses that are permitted to operate with capacity restrictions as well as businesses "that were already required to close prior to the introduction of modified Stage 2 measures”. It is not altogether clear which small businesses fall within this second category.
Limited information about the Small Business Support Grant is available at the Ontario Government's website at Ontario Building On Supports for Employers During COVID-19. Go to new Ontario Small Business Support Grant to apply for the grant.
This Legal Update will be updated as additional details are provided by the Ontario Government, including any clarification provided on excluded businesses.
For information on Federal Government support for small and medium-sized businesses, see Checklist, COVID-19: Canadian Federal Government Financial Support for Small and Medium-Sized Businesses and Legal Update, COVID-19: Government Announces Canada Emergency Rent Subsidy (CERS): Replacement to Canada Emergency Commercial Rent Assistance Program (CECRA).