Yesterday, the government of Canada made an announcement regarding the future of various COVID-19 support programs.The generalWage Subsidy (CEWS)andRent Subsidy (CERS)will expire on October 23, 2021.
- TheHiring 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:
- Hardest-Hit Business Recovery Prograwilprovide 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 wilbe 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.
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.