Last week, the Government of Canada announced details regarding the Canada Emergency Rent Subsidy (CERS):
- Applications can be made through CRA starting today on November 23, 2020; and
- It will be retroactive to the beginning of October.
Also last week, Bill C-9 received Royal Assent. The Bill includes:
- The new CERS, which will provide direct rent and mortgage interest support to tenants and property owners until June 2021. The new rent subsidy will support businesses that have suffered a revenue drop by providing support up to a maximum of 65% of eligible expenses until December 19, 2020. Claims can be made retroactively to September 27, 2020.
- The new Lockdown Support, which will provide an additional 25% through CERS for qualifying businesses that are subject to a lockdown and must shut their doors or significantly restrict their activities under a public health order issued under the laws of Canada, a province or territory (including orders made by a municipality or regional health authority under one of those laws).
- The extension of the Canada Emergency Wage Subsidy (CEWS) until June 2021. CEWS will remain at the current rate of up to 65% of eligible wages until December 19, 2020.
The government reaffirmed its intention to formalize rent payable as an eligible expense, for purposes of the CERS, as of September 27, 2020. Qualifying businesses will be able to take advantage of the rent subsidy on this basis as soon as the application portal is launched.
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.