Jobs and Economic Recovery Minister Ravi Kahlon is meeting with chambers of commerce around B.C. to persuade members to apply for B.C.’s business recovery grant as the deadline nears.
The majority of the $300-million fund is unspent — just $12 million of the fund had been handed to businesses as of Feb. 4.
Unveiled in October as a way to help businesses hard hit by the pandemic, the small and medium business grant program wraps up at the end of March.
Qualifying businesses can receive up to $30,000. Tourism businesses that have been hard hit by the pandemic can qualify for up to $45,000.
After hearing from business organizations that expressed concerns about eligibility criteria, B.C. modified the program in December to make it easier for businesses to qualify for funds. The revised program says eligible businesses must have been running for 18 months, down from the previous three-year requirement, and must show a 30 per cent drop in their revenue since May, compared with the previous year. That was shaved back from the earlier requirement of a 50 per cent decline in revenue.
This month, B.C. made another change. It will pay up to $2,000 for a business’s own accountant or bookkeeper to develop a recovery plan that will assist them in applying for the grant.
Since those changes, more than 6,000 businesses have applied, of which 60 per cent are in the tourism sector, Kahlon said.
Prior to that, the program had only received about 1,500 applications.
“So that means there’s a huge pickup.”
When Kahlon spoke to the Greater Victoria Chamber of Commerce on Thursday, he urged businesses to apply for the grant.
Many businesses initially thought the grants were loans, which is not the case, Kahlon said. Business owners said they did not need loans but did need financial support. “We understood that. That’s why the program was created. So we are trying to get that word out that it is not repayable.”
The recent change to cover accountant costs takes a burden off businesses and streamlines the process, he said.
Kahlon said the ministry will continue to monitor the program and make changes as needed. “In about a month’s time, when we start seeing the trend line and how many businesses are applying and whether it’s tourism operators that are still applying at that higher amount, we’ll know how much money is being used and then we will adjust.”
B.C. will find a way to retool where there are gaps and continue to support businesses, he said.
“More than 70 per cent of businesses are relying on government supports right now. Sales are down. Foot traffic is down. So we know this recovery is going to take time.”
Premier John Horgan said the money must be spent by the end of March or it will go back to servicing the public debt. “Which is not a bad thing, but we want to make sure we get money into people’s hands.”
cjwilson@timescolonist.com
— With files from the Vancouver Sun
