The Jobs and Growth Fund (JGF) is a new $700-million federal government funding program that aims to support Canadian economies with long-term growth and jobs creation following setbacks from the global COVID-19 pandemic. Also, JGF includes up to $70 million for small businesses established after January 2020.

“By investing in our job creators and the organizations that support them, the Jobs and Growth Fund will help to create quality jobs, pursue inclusive and clean growth opportunities, and empower businesses and communities from coast to coast to coast.”
– Mélanie Joly, Canada’s Minister of Economic Development and Official Languages.

These businesses must meet the program’s eligibility criteria. Highlighting this is crucial, as most grant and loan programs need businesses to be well established, meaning there is less funding for startups and entrepreneurs.

JGF financial support is being administered by Canada’s regional development agencies, including FedDev Ontario for Southern Ontario applicants and Western Economic Diversification Canada (WD) for applicants in Western Canada.

Funding snapshot: Jobs and Growth Fund (JGF) for Ontario and Western Canada

Applications are now being accepted on a continuous intake basis until March 31, 2024, or until funding is fully allocated. The Jobs and Growth Fund (JGF)  supports projects that stimulate job creation and long-term growth for Canadian organizations through a diverse focus on rebuilding the Canadian economy following the trials and tribulations of the COVID-19 pandemic.

Funding amount

• Eligible businesses may receive interest-free repayable contributions for up to 50% of eligible costs
• Eligible not-for-profit organizations could receive non-repayable contributions for up to 90% of eligible costs
• Eligible Indigenous organizations may receive contributions for up to 100% of eligible project costs
• Project contribution amounts do not normally exceed $10 million

Applicant eligibility

• SME Businesses, including co-operatives
• Not-for-profit organizations and community economic development partners
• Indigenous organizations

Eligible projects

To be eligible for the Jobs and Growth Fund, projects must:

Strengthen the capacity in sectors critical to Canada’s recovery and growth:

• Support scale-up and market expansion activities
• Develop emerging areas of global competitive advantage
• Support supply chain adaptation and diversification opportunities in critical sectors such as food production, medical supplies, and biomanufacturing

Foster an inclusive recovery:

• Support businesses owned or majority-led by underrepresented groups
• Increase the participation of underrepresented groups in the economy by supporting not-for-profit organizations that provide funding, business services, training, etc. for a more equitable workforce

Preserve Canada’s competitiveness and future-proof SMEs through digital adoption:

• Support the development or adoption of digital and technological solutions (i.e. Industry 4.0) to increase and promote business productivity
• Invest in technologies that help scale businesses, enhance their capabilities, and increase resilience

Support the transition to a green economy:

• Support the development and adoption of clean technology
• Help communities and businesses plan and drive clean, sustainable economic growth
• Partner with organizations to catalyze the development of green regional clusters
• Work with organizations supporting businesses to transition to a green economy

Program timeline:

• Applications will be accepted on a continuous basis until all funding is allocated.
• Certain costs may be eligible on a retroactive basis up to 12 months before the receipt of the project application, but no earlier than April 19, 2021.
• All projects must be completed prior to March 31, 2024.

If your Ontario or Western Canada organization wants government funding through the Jobs and Growth Fund (JGF), please reach out to the Mentor Works team to help streamline the application and grant writing process.

Government grants and loans for COVID-19 recovery

Although many Canadian provinces are no longer in strict COVID-19 lockdowns, and national vaccination rates are higher than any other country, many businesses across Canada are still feeling the negative impacts of the virus.

In addition to the new Jobs and Growth Fund (JGF), there are other government programs dedicated to providing COVID-19 relief and recovery funding. Stay posted on the Mentor Works COVID-19 Funding Programs Page for resources, news, programs, and COVID-19.

The post How the Jobs and Growth Fund supports Canada’s economy through COVID-19 appeared first on Trade Ready.

“We are launching the Highly Affected Sectors Credit Availability Program to help those businesses hit hardest by the pandemic with low-interest, government-backed loans. By investing in Canada’s businesses, as well as workers and their families, we are investing in our shared recovery and a better future for all.”–The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade in a Canada.ca News Release, Jan 26, 2021

HASCAP government funding supports all businesses that have experienced a substantial decrease in revenues by at least 50% because of COVID-19.

Qualified small to medium-sized Canadian businesses can receive up to $25,000 to $1 million in HASCAP support loans, and larger organizations with multiple locations, such as restaurants or hotels, can receive up to $6.25 million in government funding.

About HASCAP loans for COVID-19 business support

Administered through the Business Development Bank of Canada (BDC), the Highly Affected Sectors Credit Availability Program (HASCAP) aims to offer financial assistance to Canadian businesses that have been hit hard by the impacts of the COVID-19 pandemic.

Applicant eligibility:

Based on the following eligibility criteria established by the Government of Canada, a primary financial institution will determine whether a business qualifies for HASCAP loans:

• An eligible business must be based in Canada, and have been financially stable and viable prior to the current economic situation.
• An eligible business must have received payments either from the Canada Emergency Wage Subsidy (CEWS) or the Canada Emergency Rent Subsidy (CERS) by having demonstrated a minimum 50% revenue decline for at least three months (not necessarily consecutive) within an eight-month period prior to the date of the HASCAP Guarantee application.
• If an eligible business does not qualify for CEWS and CERS, but otherwise meets all HASCAP eligibility criteria, they must provide financial statements that reflect at least three months where their revenue decreased by a minimum of 50% within the eight-month period prior to the date of the HASCAP Guarantee application.

Amount:

An eligible business can apply for a HASCAP loan for each legal entity they own, up to a maximum combined amount of $6.25 million (all legal entities combined).

• Up to $25,000 to $1 million in loans for a single, small to medium-sized business.
• Up to $6.25 million in loans for large organizations with multiple business locations.

Eligible expenses:

HASCAP loans cannot be used to pay or refinance existing debts; the loan will be used exclusively to continue or resume operations by relief of payments relating to:

• Rent payments.
• Employee payroll.
• Any additional costs deemed eligible to sustain business operations.

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Timeline:

• The HASCAP Guarantee is available until June 30, 2021.
• From a 4% interest rate and a repayment term of up to 10 years.
• Up to a 12-month postponement of principal payments at the start of the loan.

Other COVID-19 government funding support options

There have been dozens of government programs that have launched in support of the relief and recovery of Canadian businesses impacted by COVID-19 restrictions, lockdowns and overall pandemic fatigue.

To learn more about these government funding options offered to assist Canadian businesses during the COVID-19 pandemic, please visit the Mentor Works COVID-19 Funding Page.

Mentor Works is a business support organization specializing in Canadian government funding. The Ontario-based business has helped hundreds of businesses build and execute their funding strategy through a mix of federal and provincial government grants, loans, and tax credits. Mentor Works offers free online resources, funding webinars, and news via their website at www.mentorworks.ca.

The post Highly Affected Sectors Credit Availability Program: COVID-19 support loans appeared first on Trade Ready.

This news bodes well for those looking toward recovery in the new year, but the road ahead requires much patience, financial strategy, and government support too. For struggling businesses, especially SMEs, the Regional Relief and Recovery Fund is a viable option that can help them financially stay afloat until the economy is back in full swing.

The Fall Economic Statement (FES) and Regional Relief and Recovery Fund (RRRF)

On November 30, 2020, the Government of Canada released the 2020 Fall Economic Statement (FES) titled Supporting Canadians and Fighting COVID-19. Focusing primarily on the support from the Regional Relief and Recovery Fund (RRRF), the FES report highlights details about RRRF statistics, projections, and strategy plans as they relate to COVID-19 support for Canadian health, safety, business, and jobs.

Canada’s Fall Economic Statement (FES) highlights that, since its launch in May 2020, the Regional Relief and Recovery Fund (RRRF) has supported over 15,000 businesses in Canada, including more than 5,000 women-owned organizations and over 8,500 rural companies, saving around 100,000 jobs during the ongoing global COVID-19 pandemic.

What is the Regional Relief and Recovery Fund (RRRF)?

The Regional Relief and Recovery Fund (RRRF) provides repayable interest-free loans that support the fixed operating costs of Canadian businesses that cannot meet the eligibility criteria to receive funding through other federal and provincial COVID-19 support programs.

The RRRF was recently extended and expanded in southern Ontario and businesses may now receive loans for retroactive costs from March 15, 2020 until March 31, 2021 for up to a maximum of $1 million, and select not-for-profit organizations are now eligible for funding.

“Our government will always be there to support Canadians to stabilize the economy and help businesses grow. We’re working with you to support good, local jobs and help Western Canada’s economy come back strong.”—Mélanie Joly, Minister of Economic Development and Official Languages

The expense deadline of March 31, 2021, for RRRF funding support is fast approaching, so those who are interested need to apply soon to receive interest-free loans to support their economic plans during the pandemic.

Canada’s 2020 Fall Economic Statement: Plans for Ongoing COVID-19 Support for Canadian Businesses

The Government of Canada’s 2020 FES highlights an ongoing action plan including proposed measures to continue protecting Canadians’ health, businesses, and jobs in order to maintain strong economic growth and stability. The full 2020 report can be accessed here.

A few of these major planning measures include:

• A new Highly Affected Sectors Credit Availability Program that would provide government funding in low-interest loans for hardest-hit businesses, including those in sectors like tourism and hospitality, hotels, and arts and entertainment.
• A $206 million investment over two years, starting in 2020-21, to the regional development agencies for a new Regional Air Transportation initiative.
• Extending the 25 percent top-up to the Canada Emergency Rent Subsidy until March 13, 2021.
• Extending the Canada Emergency Response Benefit for an additional four weeks.
• Increasing the maximum Canada Emergency Wage Subsidy rate to 75 percent for the period beginning December 20, 2020, and extending this rate until March 13, 2021.

The government is anticipating an additional investment of up to $500 million for RRRF funding to support Canadian businesses, bringing the total funding to over $2 billion. These changes have not yet been announced, but you can stay up to date on the RRRF or  COVID-19 funding news and support through Mentor Works.

To get more expert advice on how to manage your business and taking next steps during COVID-19, read our blog COVID-19 effects & next steps for your global business.

The post How Canada’s Regional Relief and Recovery Fund helps Canadian businesses during COVID-19 appeared first on Trade Ready.