June 11, 2020 - Ottawa, Ontario
Helping businesses in the wake of COVID-19
The COVID-19 pandemic has had a severe impact on businesses of all sizes across the country. In particular, retail-oriented main street businesses have suffered with stores closed and in-person commerce halted. From the outset, the Government of Canada has taken action to support sectors affected by the pandemic, including the Regional Relief and Recovery Fund (RRRF), launched on May 13.
The national $962-million fund, delivered through Canada's regional development agencies, supports small- and medium-sized enterprises (SMEs) across Canada that have been unable to get access to existing relief measures. In southern Ontario, FedDev Ontario is delivering $213 million to provide short-term financial relief and help businesses recover.
Support for Main Street businesses and SMEs
With Ontario's economy reopening, the federal and provincial governments are working together to help small businesses go digital through a pan-Ontario project that will support businesses' recovery and generate new revenue.
Today, the Honourable Mélanie Joly, Minister of Economic Development and Official Languages and Minister responsible for FedDev Ontario, and the Honourable Prabmeet Sarkaria, Ontario Associate Minister of Small Business and Red Tape Reduction, announced a $57-million investment to help main street businesses across the province adopt digital technologies to compete now and in the future.
Building on Toronto's foundational investments in Digital Main Street and, most recently, ShopHERE, this investment of $50 million from the Government of Canada (through FedDev Ontario) and $7.65 million from the Government of Ontario will extend the support to businesses across the province. Support will be offered through two main platforms.
Digital Main Street Platform
With $42.5-million from the Government of Canada (through FedDev Ontario) and $7.45 million from Ontario, the Ontario Business Improvement Area Association, the Toronto Association of Business Improvement Areas, Communitech and Invest Ottawa will support over 21,900 small businesses across Ontario, to pivot their operations to include digital business models, regain lost revenue and become more resilient and competitive as the economy recovers.
This investment will also create jobs for more than 1,400 co-op students. Over the summer and fall work terms, students will gain valuable work experience creating online storefronts.
Recovery Activation Program
To complement the Digital Main Street Platform, the Toronto Region Board of Trade will receive $7.5 million from the Government of Canada through FedDev Ontario and $200,000 from Ontario for the Recovery Activation Program to help more than 1,000 businesses grow by embracing a digital future. Participating firms will receive training, advice and a customized blueprint for digitizing their supply chains, customer acquisition systems and other operations. This investment means that businesses across Ontario will be connected with RAP through an extensive network of chambers of commerce, industry associations and program delivery partners, with at least half of the firms supported coming from regions outside of the Greater Toronto Area.
