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

Alberta’s chief medical officer of health, Dr. Deena Hinshaw, confirmed more than 1,000 cases over the weekend Monday afternoon. File photo
COVID-19: Central zone active cases up Monday

‘We’ve now crossed the tipping point,’ says Hinshaw

Right, Ambassador of Hungary to Canada, Her Excellency Dr. Maria Vass-Salazar, lays a wreath at St. Michael’s RC Cemetery in Manfred, Ponoka County on Oct. 25. (Emily Jaycox/Bashaw Star)
Wreath laying ceremony held in Manfred

Ceremony marks 64th anniversary of Hungarian revolution, honours settlers

Alberta has 3,651 active cases of COVID-19. (File photo)
432 new COVID cases sets another record Friday

Central zone holds steady at 126 active cases

"We are looking seriously at the spread and determining what our next steps should be," says Alberta’s chief medical officer of health, Dr. Deena Hinshaw, as the daily number of COVID-19 cases continues to climb.
427 new COVID cases is highest in Alberta ever

Central zone has 126 active cases of COVID-19

B.C. Liberal leader Andrew Wilkinson, B.C. NDP leader John Horgan and B.C. Greens leader Sonia Furstenau. (Black Press Media)
VIDEO: One day until B.C. voters go to the polls in snap election defined by pandemic

NDP Leader John Horgan’s decision to call an election comes more than a year ahead of schedule and during a pandemic

The death of 19-year-old Jacob Michael Chitze of Edmonton has now been ruled a homicide following an ongoing RCMP investigation.
UPDATE: RCMP arrest youth for second degree murder of 19-year-old Jacob Chitze

Arrest made for the murder of Jacob Michael Chitze, 19.

Pumpkins for the 46th Annual WDACS Pumpkin Ball on display at Vision Credit Union Wetaskiwin. Shaela Dansereau/ Pipestone Flyer.
46th Annual Pumpkin Ball held virtually this year

This year the pumpkins were sold over a six-day online auction.

Comedic actor Seth Rogen, right, and business partner Evan Goldberg pose in this undated handout photo. When actor Seth Rogen was growing up and smoking cannabis in Vancouver, he recalls there was a constant cloud of shame around the substance that still lingers. Rogen is determined to change that. (Maarten de Boer ohoto)
Seth Rogen talks about fighting cannabis stigma, why pot should be as accepted as beer

‘I smoke weed all day and every day and have for 20 years’

Leader of the Opposition Erin O’Toole rises during Question Period in the House of Commons Thursday October 22, 2020 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
O’Toole tells Alberta UCP AGM Liberals were ‘late and confused’ on COVID response

He says Alberta Premier Jason Kenney has taken charge and not waited to make things happen

Alberta Premier Jason Kenney arrives for an announcement at a news conference in Calgary, Alta., Tuesday, Sept. 15, 2020. THE CANADIAN PRESS/Todd Korol
Inquiry into oil and gas foes to deliver report next year: Kenney

A lawsuit filed by environmental law firm Ecojustice argues the inquiry is politically motivated

The Canadian border is pictured at the Peace Arch Canada/USA border crossing in Surrey, B.C. Friday, March 20, 2020. More than 4.6 million people have arrived in Canada since the border closed last March and fewer than one-quarter of them were ordered to quarantine while the rest were deemed “essential” and exempted from quarantining. THE CANADIAN PRESS/Jonathan Hayward
Majority of international travellers since March deemed ‘essential’, avoid quarantine

As of Oct. 20, 3.5 million travellers had been deemed essential, and another 1.1 million were considered non-essential

This photo provided by Air Force Reserve shows a sky view of Hurricane Epsilon taken by Air Force Reserve hurricane hunter team over the Atlantic Ocean taken Wednesday, Oct. 21, 2020.   Epsilon’s maximum sustained winds have dropped slightly as it prepares to sideswipe Bermuda on a path over the Atlantic Ocean.  The National Hurricane Center says it should come close enough Thursday, Oct. 22, evening to merit a tropical storm warning for the island.  (Air Force Reserve via AP)
Hurricane Epsilon expected to remain offshore but will push waves at Atlantic Canada

Epsilon is not expected to have any real impact on land

A voter places her absentee ballot in the ballot box, Wednesday, Oct. 7, 2020, at Merrill Auditorium in Portland, Maine. THE CANADIAN PRESS/AP/Robert F. Bukaty
American voters living in Canada increasingly being counted in presidential race

The largest number of Canadian-based American voters cast their ballots in New York and California

Most Read