• KD Wray

Canada Emergency Updates


CANADA EMERGENCY WAGE SUBSIDY (CEWS) May 16, 2020

• CEWS was to end on June 6, 2020

The Prime Minister has announced that CEWS will be extended to the end of August, doubling the period eligibility for the wage subsidy from 3 four-week periods to 6 four-week periods

The Prime Minister indicated in his press conference that the eligibility criteria may be adjusted to make the program applicable to more businesses, in particular, he mentioned the revenue test which currently requires a 30% decline in revenue may be revised

https://www.canada.ca/en/department-finance/economic-response-plan.html has been updated to reflect this announcement

Find more information about the CEWS at https://www.canada.ca/en/department-finance/news/2020/05/government-extends-the-canada-emergency-wage-subsidy.html

Video courtesy of Global News is below on the announcement as a reference

https://globalnews.ca/video/rd/f1b51718-96ce-11ea-a5ea-0242ac110005/


CANADA EMERGENCY COMMERCIAL RENT ASSISTANCE (CECRA)

May 16, 2020

When the application process is launched the applicant will need to supply:

Proof of an existing rent reduction agreement

Proof of a moratorium on eviction

Proof of small business tenant financial hardship

The online application process will include both fillable forms fields and templates of the documents required

The application process is expected to be launched in the second half of May 2020

“Eligible Commercial Property Owners”

Must own the property that generates rental revenue from commercial real property located in Canada

The requirement for a mortgage to be secured on the property has been removed

Enter into a rent reduction agreement for the period of April, May and June that reduces the rent by at least 75%

The rent reduction agreement includes a moratorium on eviction for April,

May and June 

Property owner must have declared rental income on the personal or corporate return for the years 2018 and/or 2019

“Impacted Small Business Tenant”

A business that includes a non-profit and charitable organization

Pays no more than $50,000 in monthly gross rent per location as defined by a valid and enforceable lease agreement

Generates no more than 20 million in gross revenue (see additional rules)

Have experienced at least a 70% decline in pre-COVID-19 revenues either by comparing:

Year over year, example April 2020 vs April 2019 or

Comparing to the average revenues in January 2020 and February 2020

Deadline to apply is August 31, 2020

There are some rules to govern situations were rent has already been paid

The forgivable loan will cover 50% of the gross rent

The property owner will be responsible  for between 25% to 50% of the gross rent

The small business tenant will be responsible for 25% or less of the gross rent depending upon the rent reduction agreement

The loan is forgiven if the property owner complies with all applicable program terms and conditions including to not seek to recover rent abatement amounts after the program is over

CMHC has created a site on the program and interested parties can subscribe to be updated at the website link below

https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-

small-business


0 views

Address

22 Paris St, PO Box 519, Alliston, ON L9R 1V7

Contact

Follow

705-435-7227 · Toll Free 855-666-7227

Fax (705) 435-0917

©2017 BY KD WRAY PROFESSIONAL CORPORATION