A few days ago the federal government announced the new Canada Emergency Rent Subsidy to help businesses cover their rent due to the continued financial crisis caused by the COVID-19 pandemic. This was good news to the many businesses struggling to stay afloat. What is this new program?
New Canada Emergency Rent Subsidy (CERS) Replaces CERCA Program
The New Canada Emergency Program (CERS) will replace the old Canada Emergency Commercial Rent Assistance Program (CECRA) which ended on September 26, 2020. The biggest change between the two programs was that under the old CECRA program the commercial landlords had to apply for the program for businesses that needed rent relief. And they were under no obligation to apply, often leaving tenants in a very difficult situation.
However, under the New Canada Emergency Rent Subsidy Program, the government will now directly help the businesses and organizations who need relief. This means that businesses can apply to the program themselves and no longer need their landlords to apply. So what are the details of the program?
Details of Canada Emergency Rent Subsidy Program (CERS)
The program so far is thin on details and even on the government’s website it says that more information will be coming soon. But from the government’s news release on October 9, 2020 and other reports, here’s what has been shared so far. The new rent subsidy will support businesses, charities and non-profits that have suffered revenue drops by subsidizing a percentage of their expenses on a sliding scale, up to a maximum of 65 per cent of eligible expenses. This will last until December 19, 2020.
In addition to the rent subsidy, there will be a top-up of 25 percent available for organizations that have been temporarily shut down by a mandatory public health order.
When Will it Start? Conclusion – CERS for Business owners
There was no indication of when businesses and organizations can apply for this new program. However, when it does finally start, applicants can apply for their subsidy to start retroactively as of September 27, 2020. Once the government announces when people can apply, we will provide an update.
The new wage subsidy program is a potential relief for businesses and organizations that are struggling to survive during these unprecedented times. Hopefully, more details will become available shortly as the situation is dire for many businesses. And with COVID-19 cases on the rise again, the financial future seems more uncertain than ever. Stay safe.