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Update on Covid Support Programs

Update on Covid Support Programs

Yesterday, the government of Canada made an announcement regarding the future of various COVID-19 support programs.

Update on Covid Support Programs
  • The general Wage Subsidy (CEWS) and Rent Subsidy (CERS) will expire on October 23, 2021.
  • The Hiring Subsidy (CRHP) will be extended until May 7, 2022, with the subsidy rate to be increased to 50%.
  • Two new versions of the rent and wage subsidies will be introduced and set to expire May 7, 2022:
    • The Tourism and Hospitality Recovery Program will provide wage and rent subsidies to hotels, tour operators, travel agencies, and restaurants, with a subsidy rate of up to 75%. Subsidy rates will match revenue decline percentages, but only start at 40%.
    • Hardest-Hit Business Recovery Program will provide wage and rent subsidies to those who have experienced at least a 50% revenue decline, with a subsidy rate of up to 50%.
    • Applicants under these programs will need to demonstrate significant revenue losses over the course of 12 months of the pandemic, as well as revenue losses in the current month. The 12-month revenue decline will be calculated as the average of all revenue decline percentages for eligible organizations from March 2020 to February 2021 (claim periods 1-13, excluding claim periods 10 or 11). The actual subsidy rates are a function of the revenue decline calculated using the current month (and not the 12-month decline).
    • Subsidy rates will be cut in half on March 13, 2022.

Backgrounder

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.

 

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