Support for businesses that continue to be affected by COVID-19 is changing, with some programs expiring, some being extended, and new programs becoming available.
Expiring Programs | CEWS and CERS
As of October 23, 2021, the Canada Emergency Wage Subsidy (CEWS) program and the Canada Emergency Rent Subsidy (CERS) program are expiring.
In their place, the Canadian government is introducing new programs that are more targeted towards helping businesses that have faced especially difficult losses and that continue to be impacted by the effects of the pandemic.
New Programs | Tourism and Hospitality Recovery Program and Hardest Hit Business Recovery Program
A total of $7.4B is being offered to hard-hit businesses and workers through the new Tourism and Hospitality Recovery Program (THRP) and the Hardest Hit Business Recovery Program (HHBRP). These programs will begin on Sunday, October 24, 2021 and will run until November 20, 2021 with possible extensions through May 7, 2022 and the opportunity to make amendments to the program through July 2, 2022.
The Tourism and Hospitality Recovery Program will provide help through wage and rent subsidies for hotels, tour operators, travel agencies, and restaurants with a subsidy rate of up to 75%.
The Hardest Hit Business Recovery Program will provide wage and rent subsidy help for other businesses that have been deeply affected by the pandemic with a subsidy rate of up to 50%.
Eligible businesses would be those with a minimum revenue decline of 40% for the THRP and 50% for the HHBRP over a 12-month period during the pandemic, and the same revenue decline in the current month of application.
Lockdown Support Initiative
A lockdown support initiative has also been announced that will help businesses subjected to further shutdowns. A wage and rent subsidy will be available up to the maximum amount for the duration of the business’s closure.
The subsidy rates will be available through March 13, 2022 and will then decrease by half until they expire on May 7, 2021.
Canada Worker Lockdown Benefit
The government also plans to implement a benefit to workers who are subject to a lockdown, including those ineligible for employment insurance, of $300/week. This program will be available until May 7, 2022 and applications will be accepted retroactively beginning on Sunday, October 24, 2021.
Continued Support | Canada Recovery Hiring Program
The Canada Recovery Hiring Program is being extended and will remain in place until November 20, 2021, and will increase the subsidy rate to 50%. This program will likely be extended through May 7, 2022 with amendments being permitted until July 2, 2022.
Your Trusted Advisor
You can learn more about each of these new programs here.
Need help navigating the available support options and applications? We can help you.
KWB strives to keep our clients informed of news that could affect their business and livelihood. To become a KWB client, visit www.kwbllp.com or call us at 780.466.6204.
