On October 9, the Federal Government announced “new, targeted supports to help hard-hit businesses and other organizations experiencing a drop in revenue” as a result of the COVID-19 pandemic. Here is a high-level overview to help you understand what has changed and what is new.  

New Canada Emergency Rent Subsidy (CERS)

Who is it for? 
Businesses, charities, and non-profits with fixed property expenses, including rent and interest on commercial mortgages, who have experienced a revenue fall of 70% or more. For businesses that have experienced a less than 70% decline, there will be a gradually decreasing subsidy, in line with the decline in revenues. 

The details:  

• This new subsidy is a replacement for the Canada Emergency Commercial Rent Assistance program (CECRA). The key difference with this new program is that businesses do not need to work through their landlords – funds will be released directly to qualifying tenants.  
• CERS will provide a sliding scale of support for up to 65% of eligible expenses until December 19, 2020.  
• Keep in mind, organizations can make claims retroactively for the period from September 27, 2020 to October 24, 2020 so, if you did not take advantage of the first subsidy program, you are not excluded here.  
• Program parameters announced on Friday apply until December 19, 2020.  
• This program will provide access to rent support until June 2021. 
• We know that this will be delivered through the Canada Revenue Agency but, further details will be announced in the coming days, as the government plans to introduce legislation implementing CERS.  

Canada Emergency Rent Subsidy Top-Up  

 Who it’s for:  

Organizations temporarily shut down by a mandatory public health order issued by a qualifying public health authority.  

The details: 

• A top-up Canada Emergency Rent Subsidy of 25% for businesses that are shut down due to a mandatory public health order caused by the pandemic. 
• Timing and application details are TBD; the Federal Government website states “more information coming soon”  

Canada Emergency Wage Subsidy (CEWS) Extension  

Who it’s for: 
Businesses who need assistance with payroll.   

The details: 

• CEWS has been extended until June 2021 at the current rate of up to a maximum of 65% of eligible wages until December 19, 2020. 
• Applications for claim period 7 (August 30, 2020, to September 26, 2020) are open.  
• For more information: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html  

Canada Emergency Business Account (CEBA) Expansion 

Who it’s for: 
Small businesses that have experienced a decrease in revenue due to COVID-19 and face ongoing costs, such as rent, utilities, insurance, taxes, and employment costs. 

The details: 

• Timing and application details are TBD; further information will be announced in the coming days. 
• The press release suggests that “attestation of the impact of COVID-19 on the business will be required to access the additional financing.” It may be helpful to start working on the attestation now of you can. This way, when they announce how to apply, you’re ready. Be sure to include details they can use to verify the impact COVID-19 has had on your revenues and/or expenses.  
• For more information: https://ceba-cuec.ca/  

We will provide more information as it becomes available.  

Read the full release here.
Read the Deputy Prime Minister’s remarks here. 
Need some help navigating all of this? Don’t hesitate to reach out: mail@bot.nf.ca.