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Tax Alert

Additional $15,000 grant for Alberta businesses

The provincial government is introducing enhancements to the Small and Medium Enterprise Relaunch Grant that could benefit many Alberta businesses. In addition to the previous Relaunch grant, which was available up to a maximum of $5,000, the government is now adding a new, second grant of up to $15,000—and loosening the eligibility criteria for both grants as well.

It is important to note that only those organizations which have been affected by recent public health orders (those from November 6, 2020 onward) are eligible for the second payment.

How it worked before

A business or organization had to demonstrate a 40 percent revenue drop in either April or May of 2020, generally in comparison to revenue from the corresponding month in 2019. If there was a revenue drop over 40 percent, the organization would be eligible for a grant of up to a maximum of $5,000. The amount was calculated at 15 percent of the pre-COVID revenue earned during the corresponding month in 2019.

How it works now

A business or organization must now only demonstrate a 30 percent revenue drop in either April or May of 2020, generally in comparison to revenue from the corresponding month in 2019. This first grant is still available to a maximum of $5,000 and is still calculated at 15 percent of the business’s pre-COVID monthly revenue.

On top of the previous grant, a second payment of up to $15,000 is now available as well. Organizations are eligible for the second grant if they can attest that their business has been negatively affected by the public health orders that took effect after November 6, 2020. The second payment is calculated at three times the first grant payment, up to a maximum of $15,000.

Corporations, partnerships, sole proprietorships and non-profits may all qualify assuming they meet all necessary criteria.

Important things to note

To be eligible, all organizations must

  • have permanent establishment in Alberta,
  • have less than 500 employees and
  • submit an application between December 14, 2020 and March 31, 2021.

*Please note that this is not a complete list of all requirements. We encourage you to consult the Government of Alberta website for all criteria and application details here: https://www.alberta.ca/sme-relaunch-grant.aspx.

If you have questions about these changes to the Small and Medium Enterprise Relaunch Grant, or any other tax-related questions, please reach out to your Grant Thornton advisor.