How to Get Your BC Small And Medium Business Recovery Grant?
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BC Small and Medium Business Recovery Grant
Your British Columbia business is likely to qualify for the BC Small and Medium Business Recovery Grant. If you are in need of business support during (and following) the COVID-19 pandemic the BC government has developed a grant program to help you.
In keeping with general BC government business grants programs, there is $345 Million set aside for the BC Small and Medium Business Recovery Grant program. These funds provide recovery grants to B.C. companies employing or contracting between 2 and 149 B.C. residents having revenue declines in revenue from March 10, 2020.
The B.C. government eased the requirements and pushed out the deadline for eligible businesses to apply for funds under its business recovery grant program.
Companies must show a 30 per cent drop in income for any month period since March 2020 and the time of application in comparison with the same period during the previous year.
The deadline for businesses to apply has been extended to Aug. 31, or until all the business recovery money has been spent.
Non-profit organizations may not participate in the BC government grants for small business program.
The Latest Program Criteria
The recovery program will continue until August 31, 2021, or until the budgeted grant funds have been fully allocated.
Your business needs to demonstrate a 30% income loss between March 2020 compared to the same one month period during 2019.
You can get support with preparing your grant application by engaging a registered Small Business BC Service provider designated for the BC government grants for small business program.
If you already submitted an application before March 04, 2021, you don’t need to resubmit.
Any applications for grants submitted before March 04, 2021, are being reviewed with any updated program terms.
Any business already approved for funding is not impacted by the more recent changes.
How Does the BC Small and Medium Recovery Grant Program Work?
The B.C. provincial government is providing between $10,000 and $30,000 as a small and medium business recovery grant for qualifying companies. Travel businesses are also qualified for $15,000 more. The grants are available until August 31, 2021, or until the grant funds are all used.
How To Get the Grant For Small Business Recovery?
All eligible businesses must apply online.
Once it is determined your business is eligible for the BC small business recovery grant, you need to submit a ‘recovery plan’. Don’t worry, the service providers mentioned above will help you formulate your recovery plan if you require it.
After you file your recovery plan and it is reviewed and approved, your business will receive grant funds. Once you begin to use the funds you might be requested to provide details about how your recovery efforts are going compared to the plan you provide.
Grant funding levels are related to the number of B.C. resident employees and contractors staffed by your business as follows:
Video of Information Session
There was an information session on March 11, 2021, to present details about business eligibility, applications and recovery plan requirements (Small and Medium-Sized Business Recovery Grant program information session).
Details are also provided in the following pdf files:
Video of Eligibility Checklist and Documents Required for the BC Business Recovery Grant
Find additional information about program eligibility details and how to submit the necessary documents to find out your qualification for the grant in these pdf files:
Determine if You Qualify for the BC Business Recovery Grant
Review the qualifications to see if your enterprise is eligible for a business grant.
Your business is required to match all the eligibility qualifiers. If your business is seasonal in nature you’ll need to show related eligibility details.
The majority of your enterprise is owned by 1 or more residents of British Columbia
Your enterprise has existed in the province for minimally 1.5 years by the date you are applying for your business grant.
Your firm’s main operations are situated and operated in the province.
Your company is registered in the province
Your company is current and pays provincial taxes
Your company is now operational (if your business is seasonal or closed temporarily it will still qualify)
Your company has under 150 employees for a minimum of four months in a calendar year.
Your business is still included if you employed or contracted staff before Feb. 01, 2020.
Your company was cash-flow positive in the latest financial statement before Feb. 01, 2020
Your company lost minimally 30% income from March 2020 until now in comparison to the same month in 2019.
You have not taken steps to close, dissolve or sell the company following Feb. 01, 2020
Tourism enterprises may get up to $15,000 in additional grant money if you are eligible for the foundation grant and meet the travel grant top-up qualifiers.
To receive the travel business grant top-up, you must show a large portion of your total goods or services is purchased by travellers to B.C.
What Is Needed to Apply for the Grant?
Companies must fill out the online application and upload the required financial statements.
You must redact all personal information that your company is not allowed to share.
Also, seasonal companies need to include information that illustrates their business cycle.
Unincorporated Businesses (Including Sole Proprietorships And Partnerships)
T1-T2125 Statement of Business or Professional Activities showing the percentage of company ownership
Past 2 years of monthly revenue (just 18 months for businesses running less than 24 months). Include income separately for each month.
Company tax returns for the last two years (2018 & 2019):
Notices of Assessment
The initial section of the business owners’ T1 return (Form 5010-R)
T2125 Statement of Business or Professional Activities
Payroll details from September 1, 2019, until now. All documents have to demonstrate the number of British Columbia residents employed or contracted ...include initials, city, wage, and deductions for each employee.
Include one of the following:
T4 Statement of Remuneration Paid
PD7A Payroll filing documents
Payroll or cheque run
The following pdf files have all the details:
Step 1: Begin the Application
Validate that you meet the eligibility requirements before you begin. Make sure you have the necessary documents.
For assistance with preparing the needed documents (including interpretation and language support) call 1-833-254-4357 or email BusinessRecoveryGrantProgram@gov.bc.ca.
Step 2: Prepare Your Business Recovery Plan
A business recovery plan includes detailed actions your company will take for continued operation with the “new normal” circumstances of COVID-19. Make it realistic and easy to carry out. Include the timeframe for all actions to be finished and the cost of each action.
Download the following template:
Your Options to Complete Your Recovery Plan
If your business application qualifies, you have two options to complete your recovery plan:
Small Business B.C. - Resources and Advice for Businesses will connect you with a professional service provider to collaborate with you on the preparation of your recovery plan. The BC government funds up to $2,000 to pay for the service provider.
You can also prepare your own plan for recovery and use your own service provider.
In order to use your own professional advisor, they will have to register to be confirmed by Small Business BC on the expressions of interest page to arrange grant funds remuneration for their professional services.
Authorized Service Provider
Plans for recovery are evaluated. Grant funding will be provided if your plan is approved.
All approved grants are funded fully. The grant and travel industry top-up must meet the eligibility criteria and you must develop a recovery plan that you’ll be able to complete.
Your company will need to pay back the funding only if:
Information submitted is untrue
You don't implement their recovery plan
You use the grant funds for anything not eligible in the program
Using Your Funding
Your company can use the funding to implement the actions listed in your plan for recovery. All actions must be related directly to your company recovery.
Here are some examples:
Offer new products or services to your target market
Physical changes to your business space
Build a new patio indoors with Covid distancing protocol screens
Moving your business online
You contract with a BC-based marketing firm
You create new diversity in your business on behalf of customers
Buy new equipment to undertake rational changes to improve your products and services.
Other company actions that clearly support the recovery of your business.
Include any actions in your recovery plan that your company initiated since the recovery grant program started on September 17, 2020.
Any company in British Columbia that feels it has suffered financially from the business downturn caused by the Covid-19 pandemic should consider applying for the BC Small and Medium Recovery Grant Program.
It is well worth the effort to get the professional support need to generate the financial reports needed to qualify for anywhere from $10,000 to $30,000...and up to $15,000 more if you are in the tourism industry in the province.
And remember...this is a non-repayable grant, not a loan!