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
- 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.
Caveat: The information in this publication is current as of the time it was written. This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact Deuzeman & Associates to discuss these matters in the context of your particular circumstances. Deuzeman & Associates does not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.
Back to all articles