Yesterday, the Ontario government announced several measures as part of the 2021 Provincial Budget targeted at businesses, mature students, and families with young children. We like to highlight 6 goodies announced in this budget to kick start the economy post COVID.
We want to make sure you know all these measures as they can impact you and your business. If you have any questions, please reach out to a member of the LRK Tax team, and we are happy to chat further.
1. Doubling the Ontario Small Business Support Grant
Ontario launched the Ontario Small Business Support Grant in January 2021, which originally provided a grant of $10,000 to $20,000 to help eligible small businesses. If you qualify, you can apply for it here.
The Ontario government is doubling the grant to $20,000 to $40,000. Businesses that received the 1st round of the grant will automatically qualify for the 2nd round, so there is no need to apply for additional funding. These businesses will receive a second payment equal to the first round of the grant.
For a detailed guide, click here. This is a successful program that has helped many businesses, especially local restaurants.
Deadline to apply – Time is Ticking!
The deadline to apply is to submit your application by March 31, 2021, at 11:59 PM EST. The government has not announced an extension to this deadline.
Eligible businesses can expect to receive payment about 10 business days after their application is reviewed and approved
Who Qualifies
The grant is meant to help small businesses that were required to close or significantly restrict services under the Provincewide Shutdown effective December 26, 2020.
To receive the grant, a small business must:
- be required to close or significantly restrict services due to the Provincewide Shutdown effective 12:01 a.m. on December 26, 2020
- have less than 100 employees
- have experienced a minimum of 20% revenue decline comparing April 2020 to April 2019 revenues. (New businesses established since April 2019 are also eligible provided they meet the other eligibility criteria.)
Examples of businesses that qualify:
- Restaurants and bars
- Retail required to close for in-personal shopping
- Ski hills and Campgrounds
- Veterinary services
- Personal services and personal care services (barber shops, massage parlour, etc.)
- Vehicle and equipment repair
For a complete list, click here.
Who doesn’t qualify?
The following businesses do NOT qualify:
- Businesses that were already required to close before the introduction of modified Stage 2 measures on October 10, 2020.
- Essential businesses permitted to operate with capacity restrictions (i.e., discount and big box stores selling groceries, supermarkets, grocery stores, convenience stores, pharmacies, and beer, wine and liquor stores, hotels, taxis, places of worship, construction, manufacturing, registered health professionals).
How do I Apply?
Make sure your business qualifies by reading the above and the detailed guide. Once done, you may click here to apply.
Click here for a video showing you how to apply for the Ontario Small Business Support Grant and other relief programs.
2. Helping Your Business Go Online for Free!
The government is injecting an additional $10 Million into the Digital Main Street platform, a program designed to help businesses create and enhance their online presence.
Here are a few programs under the Digital Main Street platform:
- ShopHERE: creates online stores for independent small businesses and artists at no cost. More information here. Here are some of the program benefits:
- free 1:1 support with building and launching an online store
- advertising credits for Facebook and Google
- free .CA domain registration
- Future Proof: Future Proof is a program that assists businesses with identifying new markets, pivoting their business model, and developing and implementing a deep digital transformation plan.
- Digital Transformation Grants are now closed for application, but the government may restart some of the grants with the additional injection. Click here for more details.
- Free Resources and Online Courses on Digital Transformation and marketing. Click here for more details.
We encourage small business owners – especially those who are not as tech-savvy – to take advantage of the free resources that Digital Main Street offers to kick start their digital transformation journey.
3. Temporary Ontario Jobs Training Tax Credit for 2021
The government is introducing a new temporary Ontario Jobs Training Tax Credit for 2021 to help workers acquire new workforce skills. This Personal Income Tax credit would be refundable. This means that even if you don’t owe any taxes, you will receive a refund. The credit is equal to 50% of eligible expenses for 2021. The maximum credit is $2,000.
Individuals would be able to claim the Ontario Jobs Training Tax Credit on their 2021 Personal Income Tax returns if they meet the following conditions:
- They are resident in Ontario on December 31, 2021; and
- They have a Canada training credit limit for 2021 greater than $0.
You can find the Canada training credit limit for 2021 on the notice of assessment for 2020. (As long as you had employment or business income between $10,100 to $150,473 in 2020 you should qualify.)
Eligible expenses include tuition and other fees paid to an eligible educational institution in Canada for courses taken in 2021, or fees paid to certain bodies for occupational, trade or professional examination taken in 2021. Click here for certified institutions.
4. Enhancing the CARE Tax Credit for 2021
The CARE tax credit provides families with flexible child care support of up to 75% of their eligible child care expenses. The CARE tax credit supports families with incomes up to $150,000.
Families could receive up to:
- $6,000 per child under the age of seven
- $3,750 per child between the ages of seven and 16
- $8,250 per child with a severe disability
The government proposed to top-up this credit by 20% in 2021. This credit acknowledges that with COVID‑19 and as a result of temporary school closures, parents have faced challenges in their careers. Many have had to leave the workforce and will struggle to rejoin it. This is welcoming news for families with children.
5. Regional Opportunities Investment Tax Credit
Ontario is proposing to temporarily double the Regional Opportunities Investment Tax Credit rate to 20%. This means that corporations can receive a 20% refundable tax credit if they make investments between $50,000 to $500,000 in a year in Ontario’s eligible geographic areas. Businesses can receive upwards of a $90,000 from this tax credit.
To qualify for the tax credit, investments must be used to acquire, construct or renovate an commercial or industrial buildings (or other structures) in a designated region. Residential buildings are not eligible.
Click here for a list of eligible geographic areas.
This credit encourages business investment in areas of the province where employment growth lagged the provincial average between 2009 and 2019.
6. Ontario Tourism and Hospitality Small Business Support Grant
Tourism and Hospitality Small Business Support Grant will provide one‑time payments of $10,000 to $20,000 to eligible small businesses
Businesses must demonstrate they have experienced a minimum 20% revenue decline and have less than 100 employees to qualify.
Any small businesses that received the Ontario Small Business Support Grant will not be eligible for this new grant.
Examples of Eligible Businesses:
- Hotels
- Motels
- Travel Agencies
- Amusement and Water Parks
- Hunting and Fishing Camps
- Recreational and Vacation Camps (e.g., children’s overnight summer camps)
Applying online will be easy. Further details will be available here.
Other Ontario Government Relief Programs
Ontario’s Main Street Relief Grant: PPE support
The Ontario government is helping eligible small businesses with the unexpected costs of PPE (masks, gloves, etc.) with one-time grants of up to $1,000.
To be eligible, your business must have 2 to 19 employees and be in one of the following sectors:
- retail
- accommodation and food services
- repair and maintenance
- personal and laundry services
- gyms and yoga studios
- arts, entertainment and recreation
The deadline to apply is March 31, 2021, at 11:59 PM EST.
You may apply here.
Property Tax and Energy Cost Rebate Grants
The Ontario government is providing rebates to eligible businesses for property taxes and energy bills. Eligible businesses include businesses that were required to shut down or significantly restrict services due to provincial public health measures (modified Stage 2 restrictions or, going forward, in areas categorized as control, Lockdown or Provincewide Shutdown).
The deadline to apply is March 31, 2021, at 11:59 PM EST.
You may apply here.
