Changes to CEWS, CERS, CRB and new program announcements
The Government of Canada recently announced changes as we take our next steps in the pandemic recovery. The Canada Emergency Wage Subsidy (CEWS), Canada Emergency Rent Subsidy (CERS), and Canada Recovery Benefit (CRB) expired as of October 23, 2021. New programs have been announced to provide targeted support for hard hit individuals and businesses.
CEWS and CERS
- CEWS and CERS expired on October 23rd, but applications remain open for the prior periods. Please provide the applicable information to us as soon as possible so we can assess your eligibility and file the applications prior to the deadlines below.
- November 4, 2021 for April 11, 2021 – May 8, 2021;
- December 2, 2021 for May 9, 2021 – June 5, 2021;
- December 30, 2021 for June 6, 2021 – July 3, 2021;
- January 27, 2022 for July 4, 2021 – July 31, 2021;
- February 24, 2022 for August 1, 2021 – August 28, 2021;
- March 24, 2022 for August 29, 2021 – September 25, 2021; and
- April 21, 2022 for September 26, 2021 – October 23, 2021.
Canada Recovery Hiring Program (CRHP)
- CRHP provides eligible employers with a subsidy of up to 50% of the incremental remuneration paid to employees up to November 20, 2021. The subsidy rate began at 50% for the periods from June through August, and was gradually reduced to 40% (September), 30% (October) and 20% (November).
- Eligible employers are largely the same as those that are eligible for CEWS. Eligible for-profit corporations must be either Canadian-Controlled Private Corporations or cooperative corporations that are eligible for the small business deduction. Partnerships are eligible if at least 50% of the interest in the partnership is held by employers which are eligible for the CRHP.
- Employers with a revenue reduction of at least 10% qualify for this subsidy for the periods beginning in July and later.
- As part of the recent announcement, the government has proposed to extend this subsidy until May 7, 2022 for eligible employers with a revenue reduction of at least 10%. The subsidy rate will be increased back to 50% during this extended period if the proposed changes are enacted into law.
CRB, Canada Recovery Caregiving Benefit (CRCB) and Canada Recovery Sickness Benefit (CRSB)
- CRB is no longer available as of October 23, 2021. Applications for this final period will remain open until December 22, 2021.
- The government has proposed to extend the CRCB and CRSB until May 7, 2022 and increase the maximum benefit period by two weeks for each. The maximum duration of the benefit under the proposed changes will be increased to 44 weeks and 6 weeks, respectively.
Canada Worker Lockdown Benefit (CWLB)
- The Canada Worker Lockdown Benefit is a new program which has been proposed to run from October 24, 2021 to May 7, 2022.
- This program will provide eligible individuals with payments of $300 per week if they are unable to work due to a local lockdown during the period indicated above.
Tourism and Hospitality Recovery Program (THRP)
- THRP has been proposed to offer wage and rent subsidies to businesses in hard hit industries, such as restaurants and bars, hotels, tour operators, travel agencies, convention centres, festivals, and others during the period from October 24, 2021 to May 7, 2022.
- The program will offer a subsidy of up to 75% of eligible remuneration and expenses until March 12, 2022, and 37.5% thereafter.
- The subsidy will be available to businesses who experienced an average monthly revenue reduction of at least 40% during the period from March 15, 2020 to March 13, 2021, as well as a revenue reduction of at least 40% for the claim period.
- Lockdown Support of up to 25% will be available on eligible expenses which can increase the total rent subsidy to a maximum of 100%.
Hardest-Hit Business Recovery Program (HBRP)
- HBRP has been proposed to offer wage and rent subsidies to hard hit businesses that are not eligible for THRP during the period from October 24, 2021 to May 7, 2022.
- The program will offer a subsidy of up to 50% of eligible remuneration and expenses until March 12, 2022, and 25% thereafter.
- The subsidy will be available to businesses who experienced an average monthly revenue reduction of at least 50% during the period from March 15, 2020 to March 13, 2021, as well as a revenue reduction of at least 50% for the claim period.
- Lockdown Support of up to 25% will be available on eligible expenses which can increase the total rent subsidy to a maximum of 75%.
Other qualifying businesses, regardless of industry sector, which are not eligible for the above new programs may be eligible for wage and rent subsidies at the same rates as the THRP if they are subject to local lockdowns. The lockdown must last at least 7 days and impact activities which comprise at least 25% of total revenues. There are no revenue reduction requirements in the earlier periods of the pandemic to qualify for this subsidy.
These new measures are intended to provide support to hard hit industries and businesses that are subject to new public health restrictions. Additional details regarding the subsidy rates and qualifying businesses are expected to be announced soon and we will provide further details when available.
Do not hesitate to contact us if you have any questions regarding how any of the above impacts you, your family, or your company. SRC LLP has a team designated to assist you in navigating the many programs available and completing all applications.