Businesses hit hard financially during the COVID-19 pandemic are getting some extra help from the federal government.
In May, the Regional Relief and Recovery Fund was launched, with $110 million set aside for distribution through the Atlantic Canada Opportunities Agency (ACOA). Its purpose was to support businesses and organizations that had not been able to access other federal emergency support programs.
Late last week, government announced a top up of $60.2 million to assist businesses needing additional help to recover from the pandemic. The potential use of the funds can address multiple aspects of a business' operations, from keeping their employees and paying bills to covering capital costs.
As of Sept. 30, $63 million from the fund had been approved for use in 293 projects with businesses and business-support organizations in Atlantic Canada. The vast majority of those projects, 192, involve small businesses with five-to-99 employees, while a further 87 projects were for businesses with four employees or less. Nova Scotia accounted for the most projects with 111, followed by Newfoundland and Labrador (96), New Brunswick (56) and Prince Edward Island (30).
ACOA also provided $43.3 million to the Atlantic network of 41 Community Business Development Corporations (CBDCs) for main street businesses and retailers in small, rural and remote communities in the region.
According to a news release, more than 30 per cent of the initial funding went to tourism-related businesses, representing one of the hardest-hit sectors when it comes to the COVID-19 pandemic's economic impact. Of the $19.4 million allocated, businesses in Newfoundland and Labrador claimed almost 42 per cent of those funds at $8.1 million, spread amongst 49 projects. Nova Scotia businesses received $5.5 million for 31 projects, New Brunswick businesses claimed $3.2 million for 20 projects and Prince Edward Island business engaged in the tourism sector received $2.6 million to support 10 projects.
According to government, $42.2 million of the new funds announced last week will go directly to small- and medium-sized businesses, with the remaining $18 million going to CBDCs.
