CORRECTION: A previous version of this story contained a typo stating that "Governments are developing things on the sly." This should have read "Governments are developing things on the "fly".  Also, it was stated that the grant funding amounted to a maximum of $5,000 per month.  This was incorrect as the grant is a one-time payment up to $5,000 dollars.  We regret any misunderstanding.

 

Recently, the federal government launched a new support program for businesses affected by the coronavirus and were forced to close their doors.

The Saskatchewan Small Business Emergency Payment Program is unique in that it is not a loan. The CEO of the Swift Current and District Chamber of Commerce, Karla Wiens explains,

“The Swift Current and District Chamber of Commerce’s perspective is we applauded the provincial government and I like the term grant.  It is not a loan. The qualification paramotors are online and applications are now open. We are incredibly pleased that this is designed to help our small and medium business enterprises handle immediate cash flow issues.”

Although there will still be a few businesses that will not qualify, overall, this aid package is good news and is designed for immediate assistance. If there is a downside, Wiens adds,

“Governments are developing things on the fly. Right now, the benefits are taxable although the provincial government has asked the federal government to exempt it from taxable income for businesses going forward; however, from the business's perspective, this is very welcome.  Like I said before, the word grant, as opposed to a loan, is very welcome news.”

Another positive highlight is the Small Business Emergency Payment Plan includes entrepreneurs and new start-up businesses. If the business started by February of this year, it qualifies for the grant.  Other businesses will need to report their current revenues from February and compare it to April’s 2019 revenues, and whichever is higher, will be used to calculate the funding up to a maximum of $5,000. Owners have until July to apply.

The federal government is currently rolling out several aid programs that focus on assisting the business sector and that information can be found on the local chamber of commerce website as well as the Saskatchewan chamber of commerce website and the Canadian chamber of commerce website.  All the information is available to any business owner regardless of their membership status with the chamber.

Now that a few funding programs have started, the new focus is on what to prepare for next, especially with Premier Moe’s announcement expected on April 22, that the province will be looking at loosening some restrictions and opening up the economy.  Wiens expands,

“The recovery planning stage is critical. All business organizations are collaborating now to try to help businesses move forward. I would call it a plan for how to come out of this quicker, so that could be anything from having to look at what inventory you have right now, how you are going to plan for when your doors can open again, to how are employees coming back to work, etc. Some people would be able to stock inventory, some may need to have sale plans in place.  Whatever it happens to be, having a plan in place now will put the business in a better position to pull the trigger. It’s better to be out of the gate running instead of running to catch up.”

Since timing appears to be everything, Wiens strongly urges businesses to start their recovery planning immediately.