Government Announces New and Updated COVID-19 Relief Programs
New ‘Canada Emergency Rent Subsidy’ Program
On October 9th, 2020, the Federal government announced a new rent and mortgage relief program for some businesses 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, until June 2021.
There will also be a “top-up” emergency rent subsidy of 25 per cent, in addition to the 65 per cent subsidy, available to organizations temporarily shut down by a mandatory public health order.
Tenants will be able to apply directly for the Canada Emergency Rent Subsidy (CERS) program. Funds from CERS can be used for rent or commercial mortgages.
Further details on CERS are expected in the coming days.
It was also announced today that the maximum Canada Emergency Wage Subsidy (CEWS) will be frozen at 65% until December 19th, 2020.
CEWS is being extended until June 2021, however the subsidy is only frozen until December 19th. Without this extension, the maximum subsidy available for this coming November would have been 20% less.
Changes were also announced for the Canada Emergency Bank Account (CEBA) which is now making an additional $20,000 in loans available, with $10,000 being forgivable. To be eligible for the forgivable portion of the loan, $10,000 of the loan must be repaid by December 31, 2022.
The new deadline to apply for CEBA is December 31, 2020.
In addition, businesses will be required to somehow attest to the impact of COVID-19 on their business. As such, we believe this may be tied to some required level of revenue reduction or business closure.
More Details to Come
Further details on these new and updated programs are expected in the coming weeks. We will continue to stay on top of developments and will keep you abreast of further details or changes as they arise.