ArticleCOVID-19Your Business News
CERS, CEWS & CEBA Updates
November 6, 2020
Canadian Emergency Rent Subsidy (CERS)
On November 2, 2020, the federal government introduced the bill C-9 to provide businesses with direct access to emergency rent relief. The new CERS is intended to allow commercial tenants or property owners to apply directly for rent and mortgage-interest support.
The Prime Minister Justin Trudeau and Finance Minister Chrystia Freeland first announced a new rent relief program on October 9, 2020.
The Canadian Emergency Rent Subsidy (CERS) will:
- Be retroactive to September 27, 2020 and run through to December 19, 2020 but will have room to be expanded through to June 30, 2021.
- Cover up to 65% of eligible rent or property related expenses for businesses, charities and non-profits that have suffered a revenue drop due to the COVID-19 pandemic.
- Cover an additional 25% for businesses that were forced to shut down due to the pandemic.
Even though it may be several more weeks before this subsidy can be accessed, please don't hesitate to contact us for more information, answers, and to create an effective solution for you.
For the current information released by the Department of Finance on the CERS program, please click the following button:
Canada Emergency Wage Subsidy (CEWS)
On November 2, 2020, Bill C-9 was introduced containing changes to the CEWS program. These changes were designed to broaden or expand the eligibility for qualifying for the CEWS program and also extend the months involved in the program.
Some key highlights of these additions or amendments were:
- Extending the program officially for another month to December 19, 2020 but also leaving the legislation open to prescribe periods right through to June 30, 2021.
- Since the program is open to be expanded through to June of 2021, the application deadline due dates were amended to be the later of January 31, 2021 and 180 days after the end of the particular qualifying period.
- The subsidy rates for the claim period of November was increased and the month of December will share this subsidy rate.
- An eligible entity may now amend or revoke an election made on or before the due date for the qualifying period in which the election is made.
- The “asset purchase” rule has been broadened to include a stand-alone part of a business if other conditions are met.
It is important to remain up to date on this program as the Department of Finance continues to expand and extend the application of it. We would encourage clients to reach out to us directly for any questions or guidance on navigating through this large wage subsidy program.
For the current information released by the Department of Finance on the changes to the CEWS program, please click the following button:
Canada Emergency Business Account (CEBA)
Recent changes to the Canada Emergency Business Account (CEBA) are broadening the amount of support and those that are able to access these funds.
- As of October 26, 2020, the previous requirement of having an active business account at March 1, 2020 has been removed. Eligible businesses can now apply for CEBA after opening an eligible business account with their financial institutions. This opens access to the program for businesses that have been operating before March 1, 2020 but conducted business through personal banking accounts.
- The government announced on October 9, 2020 that the CEBA program would expand, allowing for an additional $20,000 interest free loan, with half being forgivable if repaid by December 31, 2022. More information on the details and eligibility criteria of the additional amounts are expected on this program expansion in the future.
- The application deadline for CEBA has been extended to December 31, 2020.
You are encouraged to call your FCR advisor to discuss these changes and stay up to date on the supports and opportunities being offered.
For the currently posted details on the CEBA program, please click the below button:
Our obligation as professional advisors is to provide pertinent updates that make a difference and share information that adds credibility to your decision-making process. The above publication's intent is for information purposes only. The information does not replace professional advice and does not guarantee compliance with the Law for your organization.