|Earlier this week the government announced additional support for Canadian businesses, non-profits and charities that continue to face economic challenges due to Covid-19. These measures are designed to help struggling businesses get through the second wave of the virus.
The first government attempt at a rent subsidy (CECRA) was not so well-received nor extensively utilized because it depended on landlord participation, additional agreements, stipulations and complexities which many shied away from.
The new Canada Emergency Rent Subsidy (CERS) will provide direct and easy-to-access rent and mortgage interest support to tenants and property owners through June 2021 for qualifying organizations. It would support businesses, charities, and non-profits that have suffered a revenue drop by providing a subsidy of up to a maximum of 65% of eligible expenses until December 19, 2020. It will scale down over the remaining months. The government is proposing to allow claims retroactively for the period between September 27 – October 24, 2020. More details on this program will follow in the coming weeks.
Additionally, the government announced new Lockdown Support, which would provide a further 25% subsidy through CERS for qualifying organizations that are subject to a mandatory second wave lockdown (such as restaurants, gyms, etc.) Combined, this would mean that hard-hit businesses subject to a lockdown could receive rent support of up to 90%.
As we await more details on the CERS program, we wish to remind our readers of the extension of the Canada Emergency Wage Subsidy until June 2021. The wage subsidy will remain at the current rate of up to 65% of eligible wages until December 19, 2020. Details of the next phase of this program have yet to be announced.
If you would like the help of our expert team at HS & Partners with your wage subsidy applications, or any other Covid-19 related measures, please let us know. We will continue to keep you informed as more details become available.
Your HS & Partners Team