Murray Wood: Who's hot... and who's not
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The Government of Saskatchewan is pledging to help small businesses pay for changes as they adapt to the COVID-19 pandemic.
The province announced the new Strong Recovery Adaptation Rebate (SRAR) on Monday. In a media release, the program is described as an assistance fund that will aid business who are forced to change their business model, install physical infrastructure to meet the province’s COVID guidelines, or upgrade websites and other technology to help keep their business afloat.
“This program is one more tool to help small businesses navigate the challenging situation we currently face,” said Trade and Export Development Minister Jeremy Harrison in the release. “Small businesses are continuing to do their part by not only protecting public health, but also helping to ensure a strong economic recovery in both the weeks and months ahead, and in the longer term as well.”
The rebate will be provided to businesses that have fewer than 100 employees, have seen their revenue drop by 30 per cent or more compared to last year, and will have incurred expenses to change their business model in some way between April 1, 2020, and Feb. 28, 2021.
The rebate will cover as much as half of a business’ costs, up to a maximum expenditure of $10,000.
The program is similar to the City of Regina’s Economic Recovery Grant, set up in August to help local small businesses adapt to COVID-related challenges. In late November, the city reported that nearly $250,000 had been delivered to successful applicants, with a second stage of applications to come.
No start date for the SRAR program was provided, but the province notes applications will be accepted “in the coming weeks.”
Tax reduction now in effect
The government also announced a temporary lower tax rate for small businesses to help aid the post-pandemic recovery.
Effective Oct. 1, the small business corporate income tax rate will drop from two per cent to zero. In July 2022 it will rise to one per cent, then return to two per cent a year later.
“Saskatchewan’s small businesses and their employees have been hard hit by the effects of the global COVID-19 pandemic,” Finance Minister Donna Harpauer said in a release. “Lowering taxes for every small business in our province over the next three years will help them to recover from the pandemic and enable them to retain and hire more workers.”
The province estimates that will save the 31,000 small businesses in Saskatchewan more than $189 million in provincial taxes over three years. Nearly 150,000 people are employed by small businesses.
This lower tax rate was a campaign promise made by the Saskatchewan Party during the course of the fall election.
