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UPDATE: Canada Emergency Rent Subsidy (CERS)

UPDATE: Canada Emergency Rent Subsidy (CERS)

UPDATE: Canada Emergency Rent Subsidy (CERS)

Press release on November 5, 2020 from Department of Finance Canada.

AVAILABLE:  Retroactively to September 27, 2020, until June 2021

OVERVIEW:

Proposed details provided for the first 12 weeks of the program (until December 19, 2020).

This information applies to organizations that experience a revenue decline and may qualify for the Canada Emergency Rent Subsidy. You may be eligible for additional resources (25%) under the new Lockdown Support (*detailed below).

Maximum base rate subsidy available is dependent on the decline in revenues experienced (see table below):

Revenue Decline Base Subsidy Rate (CERS) *Lockdown Support
70% and over 65% 25%
50% to 69% 40% + (revenue drop – 50%) x 1.25

e.g.:

40% + (60% revenue drop – 50%) x 1.25 = 52.5% subsidy rate

25%
1% to 49% Revenue drop x 0.8

e.g.:

25% revenue drop x 0.8 = 20% subsidy rate

25%

REVENUE:

Calculated in the same manner as under the Canada Emergency Wage Subsidy (CEWS) program. Reference periods to calculate revenue decline determined by one of the following approaches:

  • General: Monthly revenues, year-over-year, for applicable calendar month; OR
  • Alternative: Comparing current reference month revenue with the average of January and February 2020 revenues.

**NOTE that the approach chosen will apply to BOTH the base CEWS and the CERS. **

EXPENSES:

Capped at $75,000 per location for each qualifying period, with an overall cap of $300,000 that will be shared among affiliated entities.

ELIGIBILITY:

Expenses

  • Commercial rent
  • Property taxes (including taxes & municipal taxes)
  • Property insurance
  • Interest on commercial mortgages (subject to limits)

Entities

  • Individuals
  • Non-profit organizations and registered charities
  • Non-public colleges and schools
  • Taxable corporations and trusts

ADDITIONAL information on eligibility, calculating revenues, and qualifying period:

CERS: https://www.canada.ca/en/department-finance/news/2020/11/canada-emergency-rent-subsidy.html

 

NEW: Lockdown Support

Backgrounder from Department of Finance Canada on November 5, 2020.

OVERVIEW:

You may be eligible for additional resources (25%) under the new Lockdown Support, if the organization is subject to a public health order issued under (Canada) national, provincial, or territorial law.

ELIGIBILITY:

To qualify for Lockdown Support for a qualifying property the following MUST apply:

  • the organization qualifies for the base Canada Emergency Rent Subsidy; and
  • the public health order requires that the organization
    • completely shut down the location; or,
    • cease some or all the activities at the location and it is reasonable to conclude that the ceased activities were responsible for at least approximately 25 per cent of the revenues of the entity at that location.

If eligible for the Lockdown Support, eligible expenses (detailed under CERS) will be capped at $75,000 per location, but no overall cap would apply.

ADDITIONAL information on eligibility, calculating revenues, and qualifying period:

Lockdown Support: https://www.canada.ca/en/department-finance/news/2020/11/lockdown-support-for-businesses-facing-significant-public-health-restrictions.html