Daily Update: June 29, 2020

Alberta’s Recovery Plan

The province revealed their plan for economic recovery today which includes corporate tax relief, infrastructure spending and investment into diversification of the economy. Here are some details:

Strategic infrastructure projects

The government will launch a series of large-scale infrastructure projects this summer at a total cost of $612 million. These strategic projects will be spread across every region of the province, and will include the twinning of highways, projects that support growth in the agricultural sector, gas line extensions for northern residents, treatment facilities for Albertans recovering from addictions, and other important projects. The projects announced today will be followed by more projects announced in the coming months that will drive economic expansion and provide a legacy that will benefit our province for decades to come.

Corporate Tax Relief

On July 1, the corporate income tax rate will drop to eight per cent – a year and a half sooner than promised. Government is continuing its commitment to reduce red tape by ensuring government processes and regulations in the province do not constrain growth.Innovation Employment Grant

Innovation Employment Grant

The Innovation Employment Grant is targeted to smaller companies and encouraging technology and investment in Alberta. It will provide a refundable tax credit to companies that invest in research and development.

Temporary Foreign Workers

The provincial government will be asking the federal government to remove most occupational categories under the Temporary Foreign Worker Program for Alberta. In addition, the Fairness for Newcomers Action Plan will be accelerated to put new Albertans who are already here to work faster in jobs that reward their skills and training. 

Cultural Event Relaunch Program

A Cultural Event Relaunch Program will support music, performing arts and landmark events which have been especially hard-hit by public health measures. This program will help those events which may relaunch in the summer address physical distancing requirements, or relaunch as strong as ever in the next season.

Municipal infrastructure

Funding for strategic projects is supplemented by increased funding for municipal programs. Up to $500 million in further funding for municipalities is expected to be matched by Ottawa.

Diversifying the Economy

Sector strategies

Alberta’s Recovery Plan will focus on sector strategies for diversifying the economy. These strategies will focus on growth in other high-opportunity sectors such as value-added petrochemical manufacturing, minerals, including rare earth minerals, pharmaceuticals, the financial sector, logistics and aviation. The details of these sector strategies will be announced this summer and fall.

Technology

Government is also announcing its commitment to diversification through a re-capitalization of the Alberta Enterprise Corporation (AEC). Government is investing $175 million over the next three years in capital funds that support the technology sector in Alberta.

Promoting Alberta

Government is establishing a new investment agency to help restore economic growth, create jobs, and diversify our economy. The Invest Alberta corporation will boost investment attraction efforts in key markets with major partners around the globe. It will increase investment in Alberta’s primary industries – energy, agriculture, and tourism and encourage investment in our high-potential sectors, such as technology, aviation and aerospace, and financial services. Government has allocated $6 million a year over three years for its operations.

This funding is part of the $75 million allocated to implement the Investment and Growth Strategy over the next three years to rebuild Alberta’s reputation as a destination for business and investment.

Read the press release and find more information.

Small and Medium Enterprise Relaunch Grant

The Small and Medium Enterprise Relaunch Grant offers financial assistance to Alberta businesses, cooperatives, and non-profit organizations that faced restrictions or closures from public health orders, and experienced a revenue loss of at least 50 per cent due to the COVID-19 pandemic. Eligible job creators can apply for up to $5,000 through this program.

This relief for businesses and non-profits can be used to offset the costs they are facing as they reopen their doors. This includes the costs of implementing measures to prevent the spread of COVID-19, such as physical barriers, PPE and cleaning supplies, as well as rent, employee wages, replacing inventory and more.

To be eligible, small- and medium-sized businesses, cooperatives and non-profits must have 500 or fewer employees.

Application intake will open at 10 a.m. on June 29, and remain open until Aug. 31, or for four weeks following the start of stage three of Alberta’s Relaunch Strategy – whichever is later.

Application intake days by region are as follows:

• June 29, 2020: North (excludes major centers)
• June 30, 2020: South (excludes major centers)
• July 1, 2020: Urban (Grand Prairie, Fort Mac, Cold Lake, Lloydminster, Leduc, Wetaskawin, Camrose, Red Deer, Medicine Hat, Lethbridge)
• July 2, 2020: Calgary
• July 3, 2020: Edmonton
• July 4, 2020 onwards: Anyone may apply at any time until the program closes 

Full program details, including additional eligibility criteria, application days by region, and how to apply, are outlined in the program guidelines.

Fund to help Indigenous community-owned businesses

The Aboriginal Business Investment Fund (ABIF) will provide eligible Indigenous community-owned businesses with up to $500,000 in funding for ventures that demonstrate social and economic benefits for their communities.

ABIF supports projects that increase:

• employment opportunities for Indigenous people
• local revenue streams for Indigenous communities
• the economies of Indigenous communities

Communities must own and control 51 per cent or more of the proposed business or joint venture to be eligible.

Recipients Revealed: Canadian Business Resilience Network Small Business Relief Fund

Today the Canadian Chamber of Commerce announced the 62 recipients who were each awarded a $10,000 lifeline to help their small business recover and prosper beyond this pandemic through the Canadian Business Resilience Network Small Business Relief Fund. The fund was managed by the Canadian Chamber of Commerce and made possible through the generosity of Salesforce. See the recipient list and read the press release.

Federal Government Looking To Extend Rent Assistance For Another Month

Today the Government of Canada indicated that it is looking to extend the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses to provide relief for small businesses experiencing financial hardship due to COVID-19. Currently the program covers April, May and June. The federal government is now working with the provinces and territories to continue the program into July. Apply for CECRA.

Does Your Business Use AI Systems? If So, The OECD Wants To Hear From You!

The Canadian Chamber is the lead organization for Canada at the Business at OECD. To support its work, the OECD has launched an AI survey intended to identify and share practical approaches and good practices that can be learned from to implement trustworthy AI systems. The deadline to complete the AI survey is July 10. Take the survey now.

Western Provinces announces new online business registry

A new online service simplifies the registration process across provincial lines. Until now, Alberta, British Columbia, Saskatchewan and Manitoba had separate processes and systems for corporations and limited partnerships to complete their extra-provincial business registrations and maintenance filings. On June 27, the four provinces were the first to implement the online Multi-jurisdictional Registry Access Service (MRAS), a hub that allows corporate information sharing between the provinces, making extra-provincial registration faster and easier. More information.

Bill 23 discussion with Minister Tanya Fir

Economic Development Minister Tanya Fir is holding a discussion on the Commercial Tenancies Protection Act (Bill 23) on June 30, 2020 from 2:30 to 3:30 p.m. (MT). 

Toll-free dial-in number: 1-866-792-1317

Conference ID: 6106045

Topics:

1. Are there other areas in the proposed Act the government should consider to protect tenants?
2. Is a 25 percent decrease in revenue too inclusive? If so, what alternative would you suggest and why?
3. Currently, the government is not contemplating incorporating maximum or minimum revenue thresholds. What are your views on these parameters?
4. Are there any other areas of the Act the government should consider?