Government & Ontario Benefit Programs
- KD Wray
- Nov 23, 2020
- 3 min read
CANADA EMERGENCY RENT SUBSIDY (CERS)
November 23, 2020
• Legislation received Royal Asset on November 19, 2020
• Application window opens through CRA on Monday, November 23, 2020
• The program provides rent and mortgage support to small businesses impacted by the COVID-19 health crisis
• Tenants apply to this program and receive the subsidy direct unlike the earlier program CECRA which was landlord oriented
• The CERS subsidy program is expected to run until June 2021
• There is a list of eligible entities, it is fairly broad most would qualify, though tenant needs either:
• Payroll account as of March 15, 2020
• Business number as of September 27, 2020
• Eligible expenses:
• Commercial rent, property tax, property insurance and interest on commercial mortgages less subleasing revenue will qualify for the subsidy calculation
• Any sales tax is excluded from the amount
• Need written agreements for the expenditures, entered into before October 9, 2020
• Non-arm’s length payments will not be eligible
• Interest on properties primarily used to earn rent will not be eligible
• Eligible expenses are capped at $75,000 per location and $300,000 overall shared by affiliated entities
• Two parts to the subsidy after demonstrating a decline in income:
• It will be a sliding scale as follows:
• 70% + decline in revenue will result in a 65% subsidy
• 50% to 69% will result in 40% + (revenue drop % - 50%) x 1.25
• 15% to 49% will result in revenue drop % x 0.8
• Up to 25% of eligible expenses if temporarily shut down by a mandatory public health order, see proration and eligibility details in the backgrounder below
• Businesses will need to apply monthly
• The decline in revenue will be determined by using the periods and methods used in the Canada Emergency Wage Subsidy (CEWS)
• The first rent subsidy period runs from September 27 to October 24
Questions?
The CFIB link has a FAQ page that they will update as legislation is released or see Department of Finance Canada backgrounder dated November 5, 2020. You can find more information by pressing the links below.
CANADA EMERGENCY BUSINESS ACCOUNT (CEBA)
November 23, 2020
• The application deadline has been extended to December 31, 2020
• Be aware that CEBA is to be expanded per the Government of Canada announcement on October 9, 2020 • An additional $20,000 of funding is to be made available of which $10,000 is forgivable if the loan is repaid by December 31, 2022
• No details are available as of yet on the application process other than it will be completed through your financial institution
• Monitor the CEBA site below or your financial institution for announcements
• CEBA has also been expanded as of October 26, 2020, to include active and operating small businesses on March 1, 2020, that were operating without a business bank account
• A pre-screening tool is now available by pressing the button below to determine eligibility for CEBA
You can find more information by pressing the links below.
CANADA EMERGENCY WAGE SUBSIDY
November 23, 2020
• The program has been extended to June 2021
• The current subsidy rate is up to a maximum of 65% of eligible wages until December 19, 2020
• Base subsidy of 40%
• Top-up subsidy of up to 25% for employers with declining revenue test greater than 50%
• To make the top-up subsidy more responsive, starting period 8 (September 27 – October 24) the top-up subsidy will be based on the same revenue decline test as the base subsidy rather than the three-month average decline test
• A safe harbour rule will exist for period 8 through 10 to allow the employer to use the top-up subsidy calculation most favourable to them
You can find more information by pressing the link below.
ONTARIO PROGRAMS
November 23, 2020
Main Street Small Business A one-time grant of up to $1,000 for eligible main street small businesses — in retail, food and accommodations, and other service sectors — with two to nine employees to help offset the unexpected costs of personal protective equipment (PPE). Property Tax and Energy Cost rebate grants For businesses that were required to shut down or significantly restrict services due to provincial public health measures (modified Stage 2 restrictions or, going forward, in areas categorized as control or lockdown). This provincial application-based grant provides a rebate to eligible businesses in respect of property taxes and energy bills. Application details and application portal at the link below, the information needed includes: • Canada Revenue Agency business number • Need receipts or proof of costs for PPE, property tax, hydro and heating costs
Comments