Small Business grants for PPE

COVID-19 has adversely affected all businesses, especially retail and eating establishments which have had to introduce barriers at cash-registers, hand sanitizing stations and staff employees in PPE just to carry on daily operations, along with changes to websites to include delivery options.

The Federal Government has just introduced the $12 million Canada United Business Relief Fund to help offset some of the costs that small businesses are facing as a result of COVID-19. The fund opened on October 26, 2020 and funds will be distributed on first-come first-serve basis. Funding is up to $5,000 per business and a decision on applications will be made within 40 days after being received. Be sure in get your application in soon refund the funds are all gone.

How do I qualify for the Canada United Business Relief Fund?

In order to qualify for funding companies must meet the following criteria:

• Only one application may be submitted per ownership group 
• Be incorporated, or operating as a sole proprietor/partnership, in Canada as of March 1, 2020
• Have no more than 75 employees 
• Have minimum annual sales of $150,000 and not more than $3,000,000  
• Be in operation after September 1, 2020 (grant recipients must sign a declaration included in the approval letter to confirm)
• Must attach all necessary receipts and invoices, accompanied with proof of payment, with the application. Failure to include sufficient expenditure details and accompanying documents will result in automatic disqualification
• Be in full compliance with all applicable government laws, rules, regulations, guidelines and other legally binding measures (self declaration)
• Must submit the company’s sales tax (GST/HST) registration document or a recent sales tax (GST/HST) filing  

Priority applicants for consideration will include businesses owned by Indigenous People, women, visible minorities, LGBTQ2+, and persons with disabilities.  Considerations will also be made to ensure the fund is distributed broadly to all regions across the country.

Eligible Activities and Costs

There are three categories of purchases that are eligible for reimbursement under the program: 

• Purchase of Personal Protective Equipment (PPE) 
• Renovation of space to adhere to re-opening guidelines 
• Enhancement of website/ developing E-commerce capability 

Eligible expenses directly related to the above categories are permitted provided that purchases were made no earlier than March 15, 2020. 

Category Details:

Purchase of Personal Protective Equipment (PPE)

Purchase of Personal Protective Equipment may include equipment purchased to ensure operations are safe for both customers and employees. Eligible equipment costs are incremental costs associated with additional precautions for COVID-19, not normal ongoing business costs. This may include:

• Masks
• Face shields
• Gloves
• Sanitizer
• Disinfectant chemicals/ wipes 
• Chemical sprayers 
• No touch thermometers 
• Protective gear such as scrubs, lab coats, etc.

Renovations for post-COVID re-opening

Renovation of space includes alterations specifically related to COVID-19 that are temporary or permanent, made to the applicant’s business to reduce the risk to customers or staff. These can include: 

• Building or buying physical barriers (plexiglass, sneeze guards, etc.)
• Creation of floor marker signage
• Building, buying sanitizing stations 
• Building or buying materials to create a curbside pickup for outdoor contactless pickup (side buildings, tents, etc.)
• Installing touchless devices such as doors, waste containers and bathroom upgrades (taps sinks, etc.)
• Developing e-commerce capability to enhance website
• Detailed description of enhancements must be provided including quotes where applicable.

Enhancement of website

Expenses may include:

• Creating or designing a website
• Hiring external staff for copywriting to write/enhance descriptions found on the website
• Having professional photos taken for products

E-commerce capability 

• The one-time set-up fee for online e-commerce transactions
• Monthly fees (from March to September 2020) supporting new e-commerce set up.  Monthly costs associated with pre-existing e-commerce platforms are not eligible.  
• Webinar software
• Touchless payment hardware 

Ineligible Costs and Expenses
These costs are ineligible:

• Taxes
• Consulting fees
• Business plans/strategic plans/feasibility studies/strategies etc. 
• Inventory costs
• Employee wages
• Existing operating costs
• Office furniture 
• Laptops, headphones, printers, cables, etc. 
• Third-party delivery transaction fees 
• Renovations not required for social distancing 
• Social media advertising & marketing 
• Items purchased for resale
• Recurring subscription fees/services implemented pre-COVID-19
• General cleaning services 

How to Submit an Application
To apply for the Canada United Business Relief Fund go to https://occ.ca/canada-united-small-business-relief-fund/ and click on the link to access the application.

Bonny Koabel CPA, CGA is President of AKR Consulting Canada.