CERS Application Details

Earlier today, the government of Canada opened the CERS application process for the first period (September 27, 2020 to October 24, 2020). The application process seems very similar to that of the CEWS program.
We will be working hard to complete CERS claims for clients just as we have been doing with CEWS claims.

Some key points regarding the CERS application process are below.

Maximum Eligible Expenses per Period

$75,000 per business location (base and top-up)
$300,000 in total for all locations (including any amounts claimed by affiliated businesses)
- Applies to the base subsidy only
- There is no maximum for the top-up subsidy

Eligibility Criteria

There are a few criteria that expenses need to meet:
- Only amounts paid or payable to an arm’s-length party can be included
- The expense must be in respect of the claim period
- The expense must be paid or payable under a written agreement in place before October 9, 2020 (or a renewal on substantially similar terms or assignment of such an agreement)

Eligible Expenses if Property is Rented

Rent (including rent based on a percentage of sales, profit or similar criteria)
Amounts required to be paid or payable by you under a net lease (either to the lessor or a third party). Includes:
- Base rent;
- Regular payments for customary operating expenses;
- Property and similar taxes; and
- Regular payments to the lessor for customary ancillary services

Eligible Expenses if Property is Owned

Property and similar taxes
- Includes school taxes and municipal taxes, if these are part of your property tax assessment
Property insurance
Interest on commercial mortgages for the purpose of purchasing real property
- Your mortgage amount cannot exceed the lesser of:
  - The lowest principal amount secured by one or more mortgages on the property at any time it was acquired; or
  - The cost amount of the property

Should you have any questions or feedback, please reach out to myself or the team. As always, we are here to help and support you.