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Government & Ontario Benefit Programs


CANADA EMERGENCY RENT SUBSIDY (CERS)

November 23, 2020


Legislation received Royal Asset on November 19, 2020

Application window opens through CRA on Monday, November 23, 2020

The program provides rent and mortgage support to small businesses impacted by the COVID-19 health crisis

Tenants apply to this program and receive the subsidy direct unlike the earlier program CECRA which was landlord oriented

The CERS subsidy program is expected to run until June 2021

There is a list of eligible entities, it is fairly broad most would qualify, though tenant needs either:

Payroll account as of March 15, 2020

Business number as of September 27, 2020

Eligible expenses:

Commercial rent, property tax, property insurance and interest on commercial mortgages less subleasing revenue will qualify for the subsidy calculation

Any sales tax is excluded from the amount

Need written agreements for the expenditures, entered into before October 9, 2020

Non-arm’s length payments will not be eligible

Interest on properties primarily used to earn rent will not be eligible

Eligible expenses are capped at $75,000 per location and $300,000 overall shared by affiliated entities

Two parts to the subsidy after demonstrating a decline in income:

It will be a sliding scale as follows:

70% + decline in revenue will result in a 65% subsidy

50% to 69% will result in 40% + (revenue drop % - 50%) x 1.25

15% to 49% will result in revenue drop % x 0.8

Up to 25% of eligible expenses if temporarily shut down by a mandatory public health order, see proration and eligibility details in the backgrounder below

Businesses will need to apply monthly

The decline in revenue will be determined by using the periods and methods used in the Canada Emergency Wage Subsidy (CEWS)

The first rent subsidy period runs from September 27 to October 24

Questions?

The CFIB link has a FAQ page that they will update as legislation is released or see Department of Finance Canada backgrounder dated November 5, 2020. You can find more information by pressing the links below.

CANADA EMERGENCY RENT SUBSIDY FAQ

https://www.cfib-fcei.ca/en/canada-emergency-rent-subsidy-cers-faq

DEPARTMENT OF CANADA BACKGROUNDER 1

https://www.canada.ca/en/department-finance/news/2020/11/canada-emergency-rent-subsidy.html

DEPARTMENT OF CANADA BACKGROUNDER 2

https://www.canada.ca/en/department-finance/news/2020/11/lockdown-support-for-businesses-facing-significant-public-health-restrictions.html

CANADA EMERGENCY BUSINESS ACCOUNT (CEBA)

November 23, 2020

The application deadline has been extended to December 31, 2020

Be aware that CEBA is to be expanded per the Government of Canada announcement on October 9, 2020 An additional $20,000 of funding is to be made available of which $10,000 is forgivable if the loan is repaid by December 31, 2022

No details are available as of yet on the application process other than it will be completed through your financial institution

Monitor the CEBA site below or your financial institution for announcements

CEBA has also been expanded as of October 26, 2020, to include active and operating small businesses on March 1, 2020, that were operating without a business bank account

A pre-screening tool is now available by pressing the button below to determine eligibility for CEBA

You can find more information by pressing the links below.

PRE-SCREENING TOOL

https://verify-verifier.ceba-cuec.ca/ CANADA EMERGENCY BUSINESS ACCOUNT FAQ

https://ceba-cuec.ca/

CANADA EMERGENCY WAGE SUBSIDY

November 23, 2020

The program has been extended to June 2021

The current subsidy rate is up to a maximum of 65% of eligible wages until December 19, 2020

Base subsidy of 40%

Top-up subsidy of up to 25% for employers with declining revenue test greater than 50%

To make the top-up subsidy more responsive, starting period 8 (September 27 – October 24) the top-up subsidy will be based on the same revenue decline test as the base subsidy rather than the three-month average decline test

A safe harbour rule will exist for period 8 through 10 to allow the employer to use the top-up subsidy calculation most favourable to them

You can find more information by pressing the link below.

FIND OUT MORE

https://www.canada.ca/en/department-finance/news/2020/11/details-on-the-canada-emergency-wage-subsidy-extension.html


ONTARIO PROGRAMS

November 23, 2020

Main Street Small Business A one-time grant of up to $1,000 for eligible main street small businesses — in retail, food and accommodations, and other service sectors — with two to nine employees to help offset the unexpected costs of personal protective equipment (PPE). Property Tax and Energy Cost rebate grants For businesses that were required to shut down or significantly restrict services due to provincial public health measures (modified Stage 2 restrictions or, going forward, in areas categorized as control or lockdown). This provincial application-based grant provides a rebate to eligible businesses in respect of property taxes and energy bills. Application details and application portal at the link below, the information needed includes: Canada Revenue Agency business number Need receipts or proof of costs for PPE, property tax, hydro and heating costs


https://www.app.grants.gov.on.ca/msrf/#/



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