Emergency Rent Support (CERS) and Emergency Wage Subsidy Programs CEWS)
Update Posted August 17, 2021
Government Passes Legislation Adopting New Rent Support (CERS), Lockdown Support and Extension of the Canadian Emergency Wage Subsidy (CEWS)
November 19th, Bill C-9, An Act to Amend the Income Tax Act (Canada Emergency Rent Subsidy and Canada Emergency Wage Subsidy) received Royal Assent. The bill enacts new supports to help hard-hit businesses.
The new support includes:
- The Canada Emergency Rent Subsidy will provide direct and easy-to-access rent and mortgage interest support to tenants and property owners until June 2021 for qualifying organizations affected by COVID-19. The new rent subsidy will support businesses, charities, and non-profits that have suffered a revenue drop by providing support up to a maximum of 65 per cent of eligible expenses until December 19, 2020. Claims can be made retroactively to September 27, 2020.
- Lockdown Support, will provide an additional 25 per cent, through the Canada Emergency Rent Subsidy, for qualifying organizations subject to a lockdown and that must shut their doors, or, significantly restrict their activities under a public health order issued under the laws of Canada or, a province/territory (including orders made by a municipality or regional health authority under one of those laws). Combined, this will mean that hard-hit businesses subject to a lockdown could receive rent support of up to 90 per cent.
- The extension of the Canada Emergency Wage Subsidy until June 2021. The wage subsidy will remain at the current rate of up to 65 per cent of eligible wages until December 19, 2020.
The government also reaffirmed its intention to introduce legislation to formalize rent payable as an eligible expense, for purposes of the Canada Emergency Rent Subsidy, as of September 27, 2020. Qualifying organizations will be able to take advantage of the rent subsidy on this basis as soon as the application portal is launched.
When can businesses apply?
Applications can be made as of Monday, November 23, 2020. See links below for more information.
- The new rent subsidy will pick up where the previous program left off, delivering direct, targeted and accessible rent support to qualifying organizations affected by COVID-19 without the need to work through their landlords. It will provide a subsidy for eligible fixed property expenses, including rent and interest on commercial mortgages. The announced program parameters will apply until December 19, 2020, with future parameters in 2021 to be adapted and targeted as needed.
- To formalize rent payable as an eligible expense for purposes of the Canada Emergency Rent Subsidy as of September 27, 2020, the government will introduce legislation in the House of Commons as soon as possible.