Patti M. Macdonald (Partner), Kamil Y. Umar (Partner),
Victoria Lee (Associate) & Jessica Van Mulligen (Student-At-Law)
On December 8, 2020, the Government of Alberta announced expanded pandemic relief funding for businesses, cooperatives, and non-profit organizations. Most significantly, eligible organizations need only show a 30% reduction in revenue due to COVID-19. Additionally, if an organization has been impacted by an Alberta public health order in effect from November 6, 2020-on, the organization is eligible for a second payment of up to $15,000.
Applications under the expanded program opened on December 14, 2020.
Am I eligible?
An eligible Alberta business, cooperative, or non-profit organization must meet all of the following criteria:
- Be a prescribed legal entity.*
- Maintain a permanent establishment in Alberta and be established under prescribed legislation.*
- Carry on business/operations or (if no longer operating) be eligible to do so in Alberta on February 29, 2020.
- Employ less than 500 employees (including full time, part time, and contract employees).
- Demonstrate how and when operations were required to be temporarily closed or curtailed due to a COVID-19 public health order.
- Note: The government of Alberta has broadly defined “closed or curtailed operations” as “operations restricted or prevented from continuing as normal due to a public health order by the Chief Medical Officer of Alberta.”
- Open or plan to reopen after public health orders are lifted.
- Only received other payments, grants, or amounts from prescribed federal or provincial government assistance programs.*
- Demonstrate a gross revenue reduction of at least 30% in April or May 2020 as a result of COVID-19 public health orders, compared to April 2019, May 2019, or February 2020 revenue.
- If an organization applies for the second payment of up to $15,000, it must be operating in a region affected by the public health orders in effect from November 6, 2020 and onwards (including any rescinded orders).
- Note: Public Health Order 42-2020 (in force since December 13, 2020) is in effect throughout Alberta and among other restrictions. The Order required the closure of dine-in services, fitness centres and reduced retail occupancy to 15%. This will increase eligibility for many small businesses under the expanded program.
*Note: Further specification of permitted legal entities, legislation, and assistance programs, can be found within the Small and Medium Enterprise Relaunch Grant: Program Guidelines.
30% Revenue Reduction - DETAILS
What will I receive?
Revenue Reduction Calculation
A = Pre-COVID-19 revenue for April 2019, May 2019, February 2020, or average monthly revenue for seasonal businesses
B = Monthly revenue for April 2020 or May 2020
A-B / A x 100= %Revenue Reduction OR 1.0 - (B/A) x 100= %Revenue Reduction
First Payment: A x 0.15 = Total First Payment (to a maximum of $5,000)
Second Payment: First Payment Amount x 3 = Total Second Payment (to a maximum of $15,000)
If you have questions about your eligibility, please contact Bishop & McKenzie LLP. Our Edmonton and Calgary Business Law groups can assist your organization in maximizing your support under the expanded program.