On November 16, in our blog “Don’t Wait to File! COVID Benefit Programs are Coming to an End”, we let you know that a number of COVID support programs like CRHP (Canada Recovery Hiring Program) and CERS (Canada Emergency Rent Subsidy) were ending.
The good news is, later in November, some of these support programs were extended/expanded and new programs are being introduced. Here are some of the programs your business can still leverage:
Canada Recovery Hiring Program
CRHP, which provides wage subsidies to qualifying employers, was originally set to end on November 20. It will now be extended to May 7, 2022 with an option to extend to July 2, 2022 if needed. In addition, for claim periods starting October 4, 2020, the subsidy rate has been increased to 50% (previously 20%).
You will continue to use March 14 to April 10, 2021 as the baseline for calculating the benefit and you will have to have a revenue decline of at least 10% to qualify for the subsidy.
Tourism and Hospitality Recovery Program
The federal government will be initiating a program for the Hospitality and Tourism sector, which has been hit harder than most industries during the pandemic. This program will provide wage and rent subsidies to:
- Hotels
- Tour operators
- Travel agencies
- Restaurants
To be eligible for this program, you must show an average revenue drop of 40% between March 2020 and February 2021. You must also have current month losses of at least 40%. The maximum subsidy rate is 75%.
Businesses that are eligible for this program will also receive enhanced rates through the Canada Emergency Rent Subsidy. The maximum amount that you can claim under the rent program was also increased from $300,000 to $1 million on October 24.
This program is currently available until May 7, 2022, however, between March 13 and May 7, subsidies will be reduced by half.
Hardest Hit Business Recovery Program
This is another new program that is focused on supporting businesses that continue to experience significant revenue loss. To be eligible for this program, you do not have to be in a specific sector, but you do have to have a revenue reduction of at least 50% and the maximum subsidy rate is 50%.
Like the Tourism Program, businesses that are eligible under the Hardest Hit Business Recovery Program will receive enhancements to their rent subsidy.
In addition to these new programs, you may be eligible for subsidies of up to 75% if your business is affected by temporary local lockdowns. These subsidies will not require businesses to show revenue losses during the pandemic.
This program will also be available until May 7, 2022 with subsidy rates being cut in half starting March 13. For more information on these programs, or help applying, please contact us today.
