THUNDER BAY – The federal government has announced nearly $50 million in new support for northern Ontario businesses facing losses due to the COVID-19 pandemic. The money is intended for those that didn’t quality for previous financial assistance programs.
The federal government launched the $25 billion Canada Emergency Business Account in April. That program supported small businesses through loans of up to $40,000, with a quarter of that amount forgiven if the remainder was repaid by the end of 2022. But eligibility rules, such as the requirement to have a payroll between $20,000 and $1.5 million, left some without access.
Thunder Bay-Rainy River MP Marcus Powlowski said it wasn’t surprising some businesses fell through the cracks as his government worked to make assistance available as quickly as possible.
“I think we’ve rolled out a lot of programs really quickly in response to a need, but some of the things need some fine-tuning – and this is part of the fine-tuning,” he said. “We’re trying to fill in those gaps left by the original programs.”
A new Regional Relief and Recovery Fund will provide over $960 million in loans to small businesses that did not qualify for previous programs, with a significant portion of the loans non-repayable under certain conditions.
Just under $50 million of that total is earmarked for northern Ontario, with $24 million distributed through FedNor and $25.5 million through its 24 Community Futures Development Corporations (CFDC) throughout northern Ontario.
Thunder Bay Ventures, the local CFDC, is not yet certain how much of that amount it will receive to disburse to local businesses. Executive Director Martin Wyant expected uptake on the program to be brisk, saying his organization has fielded numerous calls from businesses who were ineligible for previous supports.
Based on research Wyant did earlier this year, he estimates 96 per cent of local businesses are what he calls “micro-enterprises,” with zero to nine employees and less than $500,000 in annual revenue.
“It’s really what I’d call Main Street Thunder Bay,” he said. “They’re not the obvious businesses people might think of… but they’re a really meaningful part of our economy.”
He anticipates those who may benefit from the new funding could include microbreweries, health firms, restaurants, contractors, agri-food businesses, and spas.
The funding available through Thunder Bay Ventures will be administered similarly to the Canada Emergency Business Account, with loans of up to $40,000 and repayment on $10,000 of that waived if the balance is repaid by the end of 2022.
Wyant expects applications for the program to be available for local businesses by Tuesday. Businesses will be expected to confirm they’re ineligible or were rejected for other support programs, indicate how they’ve been affected by the pandemic, how the money will be used, and their plans to pivot to operate in the post-COVID-19 reality.
“We want to know they’ve got a plan that’s sustainable,” Wyant said.
FedNor will also administer $24 million of loans up to $250,000 for small and medium sized enterprises across northern Ontario, which includes a vast swath from Muskoka and Sudbury to the Kenora district, using similar criteria.
Non-profits that have not previously qualified for assistance are also eligible, and loans for non-profits will be entirely non-repayable.
Powlowski said a number of companies had approached his office with concerns that they did not qualify for the Canada Emergency Business Account, and expected there would be many that would apply for the new funding.
“We’re doing our best to get them through these trying times,” he said. “I wish we could do more, but hopefully this will help a number of businesses to get through this.”
