A lease sign hangs in the window as a cyclist walks past a commercial store Monday August 31, 2020 in Ottawa. The federal government is adding $600 million to a fund to help small- and medium-sized businesses weather the COVID-19 pandemic. THE CANADIAN PRESS/Adrian Wyld

Feds top up relief fund with $600M to help small, medium businesses

Money has also gone to startup companies that need investment to stay afloat

The federal government is adding $600 million to a fund to help small- and medium-sized businesses weather the COVID-19 pandemic.

The measure announced today by Economic Development Minister Melanie Joly brings total support through the Regional Relief and Recovery Fund to more than $1.5 billion.

The government says the fund has already helped more than 12,000 businesses struggling because of the pandemic, which has hit everything from main street boutiques to hotels and restaurants.

The relief and recovery fund, administered through federal regional development agencies, is intended to help enterprises that might not be eligible for other pandemic-related assistance.

Of the new money, almost $456 million will go to small- and medium-sized operations facing financial pressure to help them keep employees and cover costs.

Another $144 million will provide rural businesses and communities with access to capital and technical support, and will be delivered by community futures development corporations across the country.

“What we’ve learned is that in certain hard-hit sectors, it was more difficult for businesses to have access to capital through financial institutions, and that’s why they came up to us,” Joly said in an interview.

For instance, in northern Ontario, half of the businesses supported to date are in the tourism sector, she said.

“We’re seeing that all over Canada.”

Money has also gone to startup companies that need investment to stay afloat, she added.

“That was key, because we need to keep our innovation and our competitive edge, notwithstanding the pandemic.”

Joly said she’s also aware that major downtown cores are “really going through difficult times right now, and we’re looking at solutions.”

The minister said she spoke with chambers of commerce in several big cities this week to see what the government can do to help.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Coronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Alyssa Gerwing, executive director of the Sidney Museum and Archives, gets into the Halloween spirit with a lit-up jack-o-lantern. With Treat Street cancelled, the Sidney Business Improvement Area Society has organized a series of other events and activities under the heading of Halloween Spooktacular. (Wolfgang Depner/News Staff)
Sidney serves up ghoulish spills and thrills during Halloween

A virtual Halloween treasure hunt and scary drive-in movies among tricks and treats

Vancouver Island-based Wilson’s Transportation has expanded to fill some of the routes left unserviced by Greyhound as of Nov. 1, 2018. (Black Press files)
B.C. bus companies say they need help to survive COVID-19

Like airlines, motor coaches have lost most of their revenue

The Capital Regional District is considering adding another dollar a year to the parkland acquisition fund fee for homeowners. (Black Press Media file photo)
One dollar or two? Greater Victoria parks acquisition fee hike spurs debate

$2 a year too steep, CRD committee recommends $1 a year increase per household

Samantha Lenz, resort manager for Oceanside RV Resort, says she continues to turn people away, who are looking for a permanent spot to winter on the Saanich Peninsula. (Wolf Depner/News Staff)
Tourism operators hope Canadian Snowbirds flock to B.C.

Provincial tourism industry hopes to compensate ‘monumental financial losses and hardship’

Patrol officers from VicPD’s Esquimalt division responded to a call about hateful graffiti in Macaulay Park Wednesday evening. (Black Press Media file photo)
Anti-Semitic, hate-based graffiti found in Esquimalt park

Police seek suspects after fresh hate-based graffiti found Wednesday evening

A woman wears a face mask and plastic gloves while browsing books as a sticker on the floor indicates a one-way direction of travel between shelves of books at the Vancouver Public Library’s central branch, after it and four other branches reopened with limited services, in Vancouver, on Tuesday, July 14, 2020. (THE CANADIAN PRESS/Darryl Dyck)
B.C. reports 234 new COVID cases, 1 death of senior who had attended small birthday party

Roughly 5,700 people are isolating due to being exposed to a confirmed case

MNP senior economist Susan Mowbray presents the State of the Island Economic Report on Thursday night to conclude the Vancouver Island Economic Alliance’s virtual summit. (VIEA image)
Not-so-rosy State of the Island report caps off virtual summit

Vancouver Island Economic Alliance’s summit took place online Oct. 27-29

President Donald Trump speaks at a campaign rally in Allentown, Pa. on Oct. 26. (AP Photo/Alex Brandon)
POLL: How closely are you following the U.S. presidential election?

It may feel like it’s been going on forever but the U.S.… Continue reading

Burnaby RCMP responded to a dine-and-dash suspect who fell through a ceiling in March 2020. (RCMP handout)
VIDEO: Suspected dine-and-dasher falls through ceiling of Burnaby restaurant

A woman believed to be dashing on her restaurant bill fell through the kitchen ceiling

A can of Canada Dry Ginger Ale is shown in Toronto on Thursday Oct. 29, 2020. The maker of Canada Dry Ginger Ale has agreed to pay over $200,000 to settle a class-action lawsuit launched by a B.C. man who alleged he was misled by marketing suggesting the soda had medicinal benefits. THE CANADIAN PRESS/Joseph O’Connal
B.C. man’s lawsuit over marketing of Canada Dry ginger ale settled for $200K

Soda’s maker, Canada Dry Mott’s Inc., denied the allegations and any liability

A deer was spotted in October 2020 in Prince Rupert, B.C., with a bright pink yoga ball stuck in its antlers. (Kayla Vickers/Chronicles Of Hammy The Deer Official Page)
Hammy 2.0? Prince Rupert deer spotted with bright pink yoga ball stuck in antlers

The BC Conservation Officer Service is aware of the deer roaming around the city

RCMP. (Phil McLachlan - Black Press Media)
Kelowna Mountie hit with 2nd lawsuit in 2 months for alleged assault

Const. Julius Prommer is accused of breaking a woman’s knee during while responding to a noise complaint

Hirdeypal Batth, 24, has been charged with sexual assault and forcible confinement in relation to an incident in August 2020. (VPD handout)
Man, 24, charged with sex assault after allegedly posing as Uber driver in Vancouver

Investigators believe there could be more victims outside of the Vancouver area

Pilot Kevin Maher participated in a flyover of a ceremony at the Cobble Hill cenotaph on Oct. 22 in a 1940 North American (Noorduyn) Harvard aircraft. (Robert Barron/Citizen)
Cobble Hill remembers lost military members with ceremony, flyover

Annual event commemorates those who died in non-combat roles

Most Read