On October 9th, the Federal Government announced the new Canada Emergency Rent Subsidy (CERS), the extension of the Canada Emergency Wage Subsidy (CEWS), as well as additional loans, through the Canada Emergency Business Account (CEBA).
New Canada Emergency Rent Subsidy for businesses
The Canada Emergency Rent Subsidy (CERS) replaces the Canada Emergency Commercial Rent Assistance (CECRA).
The new CERS program will allow businesses to apply directly for rent relief through the CRA. The original CECRA faced criticism because it required landlords to apply for the assistance and absorb a 25% reduction in rent. Prime Minister Justin Trudeau stated that the new rent subsidy will be available for businesses that continue to experience a decline in revenue, due to COVID-19From Canada.ca:
Allowing businesses to apply for the rent subsidy directly, will make obtaining support for those in need as straightforward and simple as possible.
The new CERS is set to be available until June 2021.
Canada Emergency Wage Subsidy extended to June 2021
The Canada Emergency Wage Subsidy (CEWS) will continue to provide wage relief for employers, until June 2021. The subsidy will remain at the current rate, of up to a maximum of 65% of eligible wages, until December 19th, and will not decrease on a sliding scale, as previously planned.
Canada Emergency Business Account – additional $20,000 interest-free loan
The Canada Emergency Business Account (CEBA) will be expanded to provide an additional $20,000 loan, with $10,000 forgivable, if repaid by December 31, 2022. Additionally, the application deadline for CEBA is being extended to December 31, 2020. Businesses applying for the loan will be required to prove they have faced income loss due toCOVID-19.
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