On Monday November 30, 2020, I got up and watched the Government of Canada’s fall economic statement. I wanted to see what further relief plans they had for Canadians who are struggling due to the ongoing COVID-19 pandemic. The finance minister, Chyrstia Freeland, mentioned a myriad of things they were planning to do with some ideas being more concrete than others. Here are some of the highlights below.
Government of Canada’s Fall Economic Statement- Increasing the Canada Emergency Wage Subsidy (CEWS) Rate
To continue to help businesses, the government is increasing the maximum rate of the Canada Emergency Wage Subsidy to 75 per cent for the period beginning December 20, 2020 and extending this rate until March 13, 2021. This means the government will cover up to 75% of employees’ wages during this time period. Originally, this had decreased, but this amount has now been restored to cover up to 75% of wages again.
Extension of The Canada Emergency Rent Subsidy (CERS) Rate and Lockdown Support
The current maximum rate of the Canada Emergency Rent Subsidy is 65 percent and businesses severely affected by a lockdown good get could get up to additional 25 percent of eligible expenses. This rate was to last until December 19, 2020 but now has been extended until March 13, 2021.
Potential Support for Airlines, Tourism, Hotels, Arts – Highly Affected Sectors Credit
The Finance Minister also mentioned setting up low interest loans in these industries of up to a million dollars. Those industries, as noted in the heading, are airlines, tourism, hotels and the arts. The terms of these loans would be extended over a period of up to 10 years. This will be called the Highly Affected Sectors Credit Availability Program.
Government of Canada’s Fall Economic Statement – More Support for Families
To help families with young children through the pandemic, the government will provide temporary support of up to $1,200 in 2021 for each child under the age of six for families entitled to the Canada Child Benefit.
The Government of Canada’s Fall Economic statement contained a lot of details on programs and ideas to help Canadians navigate through this pandemic and beyond. The above were just some of the main highlights gleaned from it. If you want a more detailed listing, please visit the government’s website. The cost of these programs will be enormous but the government feels it is necessary for the situation we are in. Will it help? Only time will tell but for many who are suffering due to covid-19, any help at all is good help. Stay safe.
The New Canada Emergency Rent Subsidy (CERS) program begins to take applications today. Businesses that are struggling due to COVID-19 can now apply for this subsidy. To apply, you can go to the government of Canada’s website.
What is the New Canada Emergency Rent Subsidy (CERS)?
The new CERS program (Canada Emergency Rent subsidy) is a rent or mortgage subsidy for Canadian businesses, non profit organizations, or charities who have seen a drop in revenue due to the COVID-19 pandemic. The time period that the subsidy will cover is September 27, 2020 to June 2021.
The government’s website indicates that the subsidy will cover up to 65% of qualifying expenses. There is also an additional 25% of rent support for businesses, not profit organizations or charities that have been especially hard hit by mandatory public health orders. As a result, the hardest hit businesses can potentially receive a total rent subsidy of up to 90 %. These subsidy rates are in effect until December 19, 2020.
The new subsidy program payments will be made directly to qualifying renters or property owners without needing the participation of landlords. This is a change from the previous program where the landlords had to apply for the program and as a result the expected participation for the previous program was low.
The new Canada Emergency Rent Subsidy will be a welcome sight for many Canadian businesses. With the second wave of COVID-19 spiking all over the country, more restrictions and potential lockdowns seem inevitable. As a result, many struggling businesses are going to continue to struggle to keep afloat. Hopefully, this new program can help take some of the sting of the financial losses that will come with those further lockdowns. Unlike the last wage subsidy program, the government’s hope is that many more businesses will apply. Will this help? As the old saying goes, any help is good help but only time will tell. Please stay safe.
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.