COVID-19 Small Business Credit & Support Program
Could your business benefit from a loan, one-time grant, and business advice due to the impact of COVID-19?
The COVID-19 Small Business Credit & Support Program is a new program for businesses affected by COVID-19. It consists of three parts: a loan, a one-time grant, a voucher to hire a consultant for business advice. Upon receiving credit approval for a loan up to $25,000 through this program, businesses can access an upfront grant of up to $1,500, as well as a $1,500 voucher to hire a consultant to advise on adapting or recovering from COVID-19 impacts.
Due to the high volume of applications for the Small Business Loan Guarantee Program: COVID-19 Response Stream, the program is now closed to applications.
How it works
If you apply and are approved for:
- The Small Business Loan Guarantee Program: COVID-19 Response Stream (funds up to $25,000)
Then you are eligible for both a:
- One Time Grant to Small Business (a one-time non-repayable cash grant up to $1,500)
- COVID-19 Business Continuity Voucher (to hire a consultant for services up to $1,500)
To learn more about the COVID-19 Small Business Credit & Support Program, see below.
The Small Business Loan Guarantee Program: COVID-19 Response Stream
To be eligible under the COVID19 Response Stream, a borrower must meet the following criteria.
- The Borrower’s wages and salaries paid in the 2019 calendar year was less than $20,000, or if a new business, is projected to pay less than $20,000 in 2020. The calculation of total wages and salaries does not include dividends paid to business owners.
- Has not received a loan through the Canada Emergency Business Account program.
- Experienced a decline in revenue of at least 15% in March 2020 or at least 30% in April, May or June 2020 for the same period in the 2019 or, if a new business, is projected to lose revenue in the month of application.
- Business established before March 1, 2020.
- Be a sole proprietorship, partnership, corporation, co-operatives, society, social enterprise, not for profit, charity in business, and other similar organizations.
Beverage rooms and taverns (businesses which have the majority of revenue from the sale of alcohol) are eligible under the COVID-19 Response Stream. These businesses are excluded from the regular Small Business Loan Guarantee program.
- Eligible businesses can access loans up to $25,000.
One Time Grant to Small Business
- All businesses approved for a loan through the Small Business Loan Guarantee: COVID-19 Response Stream will receive 10% of the loan amount up to $1,500 as a one-time grant.
COVID-19 Business Continuity Voucher Program
- The COVID-19 Business Continuity Voucher Program helps a business hire a consultant for advice related to business finance, accounting, human resource, restructuring, insolvency, business continuity, or other professional services which may be of assistance in adapting or recovering from the impacts of COVID-19.
- Upon receiving credit approval for a loan up to $25,000 through the COVID-19 Small Business Credit & Support Program, businesses will receive a $1,500 voucher to hire a consultant for business advice.
- All projects funded under the Program must be completed by July 24, 2020.