CJA Government Update
With the passing of Bill C-9 on November 20, 2020, the Federal Government is extending the federal wage subsidy and introducing a new commercial rent subsidy program, as concerns grow for businesses facing a new round of shutdowns amid a second wave of the pandemic. For detailed information and to apply go to https://www.canada.ca/en/department-finance/economic-response-plan.html#businesses
- The Federal Government is covering up to 65% of an employee’s wages for qualifying eligible employers, with this subsidy rate in effect until December 19, 2020. The wage subsidy supports businesses to keep and re-hire employees and avoid layoffs. The CEWS is available until June 2021.
- The Canada Emergency Rent Subsidy (CERS) provides a direct and easy-to-access rent and mortgage subsidy of up to 65% of eligible expenses to qualifying businesses, charities and non-profits. The subsidy rates are in effect until December 19, 2020. This support is available directly to tenants.
Qualifying organizations that have been significantly restricted by a mandatory public health order issued by a qualifying public health authority can receive an additional 25% of rent support through the Lockdown Support.
The combined effect of the rent subsidy and the Lockdown Support is that hard-hit businesses, non-profits and charities subject to a lockdown can receive rent support of up to 90%.
The rent subsidy and the Lockdown Support are available until June 2021.