$10 000 COVID Grant for Small Business: Everything You Need to Know

COVID-19 has been crippling economies across the world, and small businesses have been some of the hardest hit. In response to this crisis, the Canadian government has introduced a $10,000 COVID Grant for Small Business to provide some much-needed financial relief. To help you make the most of this opportunity, we’ve put together this guide outlining everything you need to know.

Eligibility Criteria

Before you rush to submit an application, it’s important to make sure that your small business meets the eligibility criteria. To qualify, your business needs to:

1. Have been active and operating as of March 1, 2020
2. Have an active business number (BN) with the Canada Revenue Agency (CRA) as of March 1, 2020
3. Have had payroll between $20,000 and $1.5 million in 2019
4. Be experiencing financial difficulties as a result of COVID-19

If your business ticks all these boxes, then you’re ready to move onto the next step.

How to Apply

Applications for the grant are made through your province or territory. Each jurisdiction has their own process, but most are actively accepting applications. You will need to provide some basic information about your business, your payroll, and how COVID-19 has impacted your operations.

It’s worth noting that the grant is non-repayable, meaning you won’t have to pay it back. However, you will need to prove that you have spent the funds on eligible expenses, such as rent/mortgage, utilities, and salaries/wages. You will also need to keep thorough records to ensure you’re able to provide the necessary documentation when requested.

Key Takeaways

The $10,000 COVID Grant for Small Business is a much-needed financial relief for eligible small businesses grappling with the impacts of COVID-19. Here are some key takeaways to help you make the most of this opportunity:

• Check your eligibility criteria before applying
• Apply through your province or territory
• Keep thorough records of how you spend the funds
• Use the grant to cover eligible expenses such as rent/mortgage, utilities, and salaries/wages
• Remember that the grant is non-repayable

Case Study

To give you an idea of how the COVID Grant for Small Business can help, let’s look at a hypothetical case study.

Sue owns a small bakery in Toronto. Before COVID-19 hit, she had a team of six employees and was doing well. When the pandemic hit, however, sales plummeted and she was forced to lay off all but two of her staff. With revenue down, Sue struggled to cover expenses like rent and utilities. To make matters worse, Sue’s landlord was unresponsive to her requests for rent relief.

Sue found out about the COVID Grant for Small Business and decided to apply. She was relieved to find that her business met the eligibility criteria, and she was approved for the $10,000 grant. Sue used the funds to cover her rent and utilities, allowing her to stay afloat during these challenging times. With the financial stress lifted, Sue was able to focus on adapting her business to the new normal and planning for the future.

In conclusion, the $10,000 COVID Grant for Small Business is a welcome relief for eligible small businesses struggling with the financial impacts of COVID-19. By understanding the eligibility criteria, following the application process, and using the funds appropriately, small businesses can weather this storm and come out stronger on the other side.