December 15 2020 | Publications

COVID-19 EXPANDED SMALL & MEDIUM ENTERPRISE RELAUNCH GRANT - What you need to know

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?

Eligible Organizations

An eligible Alberta business, cooperative, or non-profit organization must meet all of the following criteria:

  1. Be a prescribed legal entity.*
  2. Maintain a permanent establishment in Alberta and be established under prescribed legislation.*
  3. Carry on business/operations or (if no longer operating) be eligible to do so in Alberta on February 29, 2020.
  4. Employ less than 500 employees (including full time, part time, and contract employees).
  5. Demonstrate how and when operations were required to be temporarily closed or curtailed due to a COVID-19 public health order.
    1. 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.”
  6. Open or plan to reopen after public health orders are lifted.
  7. Only received other payments, grants, or amounts from prescribed federal or provincial government assistance programs.*
  8. 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.
  9. 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operating in a region affected by the public health orders in effect from November 6, 2020 and onwards (including any rescinded orders).
    1. 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

Payment Calculations

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.