How An N.B. Small Business Can Qualify For The $5,000 Grant
FREDERICTON – Applications opened up for the NB Small Business Recovery Grant that will provide relief of up to $5,000 for small businesses.
Businesses and employers who have been impacted by Covid-19 are able to apply if they are eligible for the recovery grant.
The grant is available to businesses located in a zone that was subject to “orange” or “red” phases for at least one week from October 10, 2020, to March 31, 2021. The business must operate full-time in New Brunswick, be for-profit, and have been open on or before February 1, 2020.
They must employ 2-99 people full-time and must have experienced a 30 percent drop in sales for the months the businesses operated in “red” or “orange” phases year over year.
“The 30 percent year-over-year loss requirement was implemented to ensure the program effectively targets businesses operating in sectors that have been significantly impacted by changing Public Health measures and restrictions, as defined by the state of the emergency mandatory order,” wrote Tracey Suley, ONB’s Director of Marketing and Communications, in an email to Huddle.
“Year-over-year sales represent the most objective assessment criteria to determine the impact of these changes on a business’s operation. The Government of New Brunswick will continue to closely monitor and assess economic trends and will consider additional measures if required.”
Suley says there has been confusion over whether owners and operators count as one of the full-time employees required for the requirement that the business employ at least two people full-time.
“Many businesses have reached out to inquire about the ‘Must employ 2-99 people’ requirement,” wrote Suley. “Owners and operators are eligible as long as they have at least a full-time equivalency other than themselves, assuming they also meet other eligibility criteria.”
ONB defines full-time equivalency as an employee who works 1,560 total hours per year.
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For those who are ineligible for support, such as those who are self-employed, ONB suggests seeking other means of assistance.
“As with GNB’s overall approach to Covid-19 pandemic response, we are seeking to provide support complementary to other sources. The NB Small Business Recovery Grant is directed towards expenses associated with having employees as such businesses generally have greater costs. For those who work alone, there is access to other sources of funding, such as the Canada Recovery Benefit,” wrote Suley.
Some other forms of assistance include the NB Small Business Emergency Working Capital Program, providing loans of up to $100,000, and the Canada Emergency Rent Subsidy.
Additionally, Suley says that the financial statements required for the application do not need to be completed by an accountant.
“We are looking for the monthly income statements that a business owner would normally use to manage their business. If using an accounting software package, businesses may produce the required income statements from the software. Statements produced from an electronic spreadsheet are also acceptable,” she said.
Suley encourages applicants to view the FAQ page and Application Checklist on the ONB website.
Liam Floyd is a reporter for Huddle. Send him story suggestions: [email protected].