As we are now in the second wave of COVID-19, the Federal Government has announced new and expanded support for businesses. This targeted support includes a new rent subsidy program, an extended Canada Emergency Wage Subsidy, and an expanded Canada Emergency Business Account program to provide additional funds to previously qualified businesses.
While announced on October 9, 2020, no legislation has been tabled, but further details are expected soon.
Here’s an update on the new and expanded benefits from our accounting partner, MNP.
Canada Emergency Rent Subsidy (CERS)
The new CERS, which replaces the Canada Emergency Commercial Rent Assistance (CECRA), program intends to provide simple and easy-to-access rent and mortgage support until June 2021 for qualifying organizations affected by COVID-19.
- The rent subsidy will be provided directly to tenants rather than through landlords.
- The CERS will support businesses, charities, and non-profits that have suffered a revenue drop, by subsidizing a percentage of their expenses, on a sliding scale, up to a maximum of 65 percent of eligible expenses until December 19, 2020, and up to 90 percent for those organizations that have been temporarily closed due to a mandatory public health order.
Canada Emergency Wage Subsidy (CEWS)
As previously announced, the CEWS has been extended until June 2021.
- The subsidy will remain at the current subsidy rate of up to 65 percent of eligible wages until December 19, 2020.
Canada Emergency Business Account (CEBA)
The expanded CEBA program will enable businesses, and not-for-profits eligible for CEBA loans — and which continue to be seriously impacted by the pandemic — to access an additional interest-free loan of up to $20,000, in addition to the original CEBA loan of $40,000.
- Half of this additional financing will be forgivable if repaid by December 31, 2022.
- The application deadline for CEBA is being extended to December 31, 2020.
- Further details, including the launch date and application process will be announced in the coming days. An attestation of the impact of COVID-19 on the business will be required to access the additional financing.
The COVID-19 situation is rapidly evolving. Rest assured that CDSPI will continue to provide you with updates as they become available.
In times of uncertainty, a financial plan provides you with a roadmap that can help get you on track.
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