by Jim Byers
Last updated: 12:04 PM ET, Thu May 13, 2021
The Ontario government has announced a $100 million business grant that will provide one-time payment to eligible businesses in the province, including travel agents. But it's not clear if independent advisors can apply for the grants.
Tourism Minister Lisa MacLeod on Thursday said the grants will be "one-time payments of up to $10,000 to $20,000 to support eligible small businesses struggling to recover from the impact of COVID-19."
MacLeod said the grant will support small tourism and travel businesses that did not receive the Ontario Small Business Grant.
"That means anything from travel agents, hotels, motels, resorts, bed and breakfasts and others, as small business owners can use this grant for whatever way they think makes the most sense for their business," she said. "That could be employing more people, paying their rent or turning their attention to marketing. Applications open today and they will close Friday June 25, 2021."
To apply, click here.
It sounds great, but there are major questions about independent agents and their eligibility.
"We're very grateful that this is finally out," said Brenda Slater of ACITA. "But there a couple of really big question marks. We're not sure if independent agents will qualify."
One issue is agent registration. The Ontario rules say that the company requesting the grants be registered under TICO. But Slater said what that means exactly isn't clear.
"When I started with Travel Only I wanted to be self-branded. So my company name is Beyond the Beach. Travel Only registered Beyond the Beach under their TICO number. But a lot of agents aren't self-branded. They wouldn't be named under the TICO license."
What's not clear is whether an independent agent has to be named on the TICO website or if it's okay to be under their umbrella.
Another issue is the Ontario requirement that recipients of the grants have a business bank account.
"Most of us in Ontario don't have one," Slater said. "I was on a call today with 20 agents and only four of them have one."
Slater said ACITA flagged a number of issues regarding independent agents in its talks with government. But most of those talks have been with the federal government, not provincial governments.
"The feds gave money to the provinces and they have to disperse it."
"Today's announcement that the long-awaited Ontario Tourism and Travel Small Business Support Grant has opened is welcomed news," said Wendy Paradis, President of ACTA. "When the Ontario Small Business Support Grant opened mid-January, ACTA was shocked to see that hardest hit travel agencies were listed as an ineligible business.
"ACTA actively lobbied the Ontario government to have travel agencies added as an eligible business and when the Ontario Budget was tabled at the end of March, we were very pleased to see that a sector specific funding in the form of a support grant for tourism and travel businesses had been earmarked.
"With the details just being released today, ACTA does have some questions about eligibility - on which we are seeking clarification from the government. While we are happy to see this grant finally open, we are disappointed that as a hardest hit industry, we are not being treated equal to those businesses that qualified for the Ontario Small Business Support Grant which is for a greater amount.
To be eligible, businesses must meet all of the following requirements:
They must be an eligible type of tourism or travel business in Ontario as of April 30, 2021.
They would not have received the Ontario Small Business Grant.
They must have had 99 or fewer employees on April 30, 2021, and
They must have had a revenue decline of at least 20% if the business began operating or was acquired before July 2, 2019.
The grant is estimated to support more than 7,700 businesses, MacLeod said.
Stay tuned for more details and reaction.
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