The Ontario government announced three new supports for businesses that are impacted by the capacity limits that were instated to help reduce the spread of COVID-19, including cases of the Omicron variant.
Ontario Business Costs Rebate Program
The Ontario Business Costs Rebate Program builds on previous provincial business support programs, including the Ontario Small Business Support Grant and the Property Tax and Energy Cost Rebates. Under the Ontario Business Costs Rebate Program, eligible businesses that are required to reduce capacity or close will receive rebate payments for a portion of the property tax and energy costs incurred during the time that capacity limits or closures apply to these establishments.
Eligible businesses required to reduce capacity to 50%, such as smaller retail stores, will receive rebate payments equivalent to 50% of the value of the property tax and energy costs incurred. Businesses required to close for indoor activities, such as gyms and restaurants, will receive a rebate payment equivalent to 100% of their costs.
Businesses will be required to submit their property tax amounts and energy bills during the application process. A more fulsome list of businesses that will be eligible to apply for the Ontario Business Costs Rebate Program will be made available through a program guide that will be released in mid-January 2022.
Rebates under this new program will not be automatically delivered to businesses that received previous COVID-19 support payments. Businesses must submit applications for this program and should note that the application intake opens on January 18, 2022. Payments for eligible businesses will be retroactive to December 19, 2021.
Ontario COVID-19 Small Business Relief Grant
The province is providing an additional support for eligible businesses under the Ontario COVID-19 Small Business Relief Grant. The grant will provide a $10,000 payment to small businesses that were required to close due to public health orders on January 5, 2022. Small businesses with fewer than 100 employees will be eligible to apply for this grant. Eligible small businesses include:
- restaurants and bars;
- facilities for indoor sports and recreational fitness activities (including fitness centres and gyms);
- performing arts and cinemas;
- museums, galleries, aquariums, zoos, science centres, landmarks, historic sites, botanical gardens and similar attractions;
- performing arts venues and cinemas, museums, galleries, aquariums, zoos, science centres, landmarks, historic sites, botanical gardens and similar attractions;
- meeting or event spaces;
- tour and guide services;
- conference centres and convention centres;
- driving instruction for individuals; and
- before- and after- school programs.
Eligible businesses that previously qualified for the Ontario Small Business Support Grant will be pre-screened to verify eligibility for this new grant, and these businesses will not need to apply for the new program.
Applications for the Ontario COVID-19 Small Business Relief Grant will open in the coming weeks.
Improving Cash Flow for Ontario Businesses
The province will also be providing additional supports for Ontario businesses by providing a six-month interest and penalty-free period for businesses to make payments for most provincially administered taxes.
This will support businesses in the immediate term while capacity restrictions are in place, and will also provide the flexibility that Ontario businesses will need for long-term planning. The six-month period will begin on January 1, 2022, and end on July 1, 2022.
This support measure is anticipated to provide 80,000 Ontario businesses with relief by providing businesses with the option to delay their payments for the following provincially administered taxes, helping them free up cash flow during these challenging times:
- employer health tax;
- beer, wine, and spirits tax;
- tobacco tax;
- insurance premium tax;
- fuel tax;
- international fuel tax agreement;
- gas tax;
- retail sales tax on insurance contracts & benefit plans;
- mining tax; and
- race tracks
Takeaways for Employers
Employers are encouraged to continue to monitor for further announcements during January 2022 regarding the opening date for applications for the new Ontario COVID-19 Small Business Relief Grant. Employers who were previously eligible for the Ontario Small Business Support Grant should note that they will automatically be pre-screened for eligibility to receive the new Ontario COVID-19 Small Business Relief Grant, and therefore do not need to re-apply for the new grant.
Employers who would be eligible for the Ontario Business Costs Rebate Program (e.g., establishments that were required to close or reduce capacity due to public health orders) should note that the application intake for this program opens on January 18, 2022. A full list of eligible businesses is set to be released by the province in mid-January.
We will continue to monitor the news regarding COVID-19 business supports and will promptly post about any updates relevant to employers.
This blog is provided as an information service and summary of workplace legal issues.
This information is not intended as legal advice.