Small businesses denied third round of government grants asking why?

Hanul Kim’s family cafe shop was one of thousands of small businesses that had to close its doors January 5th following the spike in Omicron cases. And like past lockdowns, they followed government guidelines, with the expectation that the grants received would keep the business afloat, as it has before.

Except this time around, it was different.

“The government has failed my mother,” Kim tells CityNews.

“Even though she meets all the criteria for the recent Small Business Relief Grant, they refuse to recognize her eligibility,” says Kim, who believes that the system set place to review applications is flawed.

When their family did not receive confirmation of pre-approval in early February, they reached out hoping someone could provide guidance.

“We decided to email and they give us the same copy and paste email every time stating decisions are final and no appeal processes are possible,” adding, “We tried calling their helpline but every time we call it’s the same story. It’s always ‘please wait it out’, or ‘try again’, or ‘we cannot comment on eligibility.’”

Even when they attempt to reapply through a new application, they are unable to submit. An issue echoed by many on social media referencing broken links and pages that wouldn’t load.

“By far the biggest issue we are hearing about right now with the new grant is the same one identified from Hanul Kim,” says Julie Kwiecinski of the Canadian Federation of Independent Businesses (CFIB).

According to the director of public affairs, many businesses that received both rounds of the old grant did not receive the pre-approval email. When they call the grant hotline, instead of sending them the email with the special link, they are being told to apply through the portal for new applicants.

“When they apply there, a message comes up saying, ‘There is a problem. Based on your attestation for previous grants, your business is ineligible for this grant. You will not be able to apply for the Ontario Small Business Relief Grant. Thank you for your interest.’”

Mary Perrone-Lisi, director of communication for the Associate Ministry of Small Business & Red Tape Reduction, confirms that the eligibility requirement for the new program remains the same as the previous Ontario Small Business Grants.

She clarifies that businesses ineligible for the OSBRG include:

• Businesses permitted to operate with capacity restrictions
• Businesses that received the Ontario Tourism and Travel Small Business Support Grant or are affiliated with any business that received the Ontario Tourism and Travel Small Business Support Grant
• Businesses not included in the eligibility list outlined in the program guide and criteria. These can be accessed here
• Additionally, only one business in a group of affiliated businesses is eligible to apply for this grant.

CityNews asked the ministry, if a business is deemed ineligible to receive the grant, are they informed as to what criteria they did not meet?

“As part of the ministry’s review process, we will reach out to applicants, on a case by case basis, if more information or additional documentation is needed to determine eligibility,” says Perrone-Lisi.

But according to the information received by Kim, a review of his mother’s application isn’t expected.

“What is so frustrating is that my mother is clearly eligible and the response we get is ‘all decisions are final’ and ‘no appeal,’” says Kim. “She is 100 per cent eligible and meets all the criteria [and] our government basically replied ‘too bad’. It is borderline insulting.”

Numbers collected by the CFIB suggest that the average COVID-related debt for an Ontario small business is an alarming $170,000. Only 33 per cent of Ontario’s small businesses are at normal revenues, and 19 per cent are actively considering bankruptcy.

“This grant could be the difference for many between sinking or swimming,” says Kwiecinski, who’s team has contacted the ministry about the issue but has yet to hear back.