OTTAWA — The federal government has announced plans to introduce new, targeted supports to help hard-hit businesses and other organizations experiencing a drop in revenue.
The government plans to introduce legislation to provide support that would help these businesses safely get through the second wave of the virus and the winter, cover costs so they can continue to serve their communities and be positioned for a strong recovery.
“We know this second wave will be even harder for those who get hit. That’s why our response needs to be targeted and effective,” says Prime Minister Justin Trudeau. “Small and large businesses create jobs, drive our economy and make our communities stronger. Our government will continue to do whatever it takes to support them.”
The new support measures include the new Canada Emergency Rent Subsidy, which would provide easy-to-access rent and mortgage support until June 2021 for qualifying organizations affected by COVID-19. The rent subsidy would be provided directly to tenants, while also providing support to property owners. The new rent subsidy is intended to support businesses, charities and non-profits that have suffered a revenue drop, by subsidizing a percentage of their expenses, on a sliding scale, up to a maximum of 65 per cent of eligible expenses until December 19, 2020. Organizations would be able to make claims retroactively for the period that began September 27 and ends October 24, 2020.
Plans also include a Canada Emergency Rent Subsidy top-up of 25 per cent for organizations temporarily shut down by a mandatory public-health order issued by a qualifying public-health authority, in addition to the 65-per-cent subsidy.
Further supports will include and extension of the Canada Emergency Wage Subsidy (CEWS) until June 2021. The subsidy would remain at the current subsidy rate of up to a maximum of 65 per cent of eligible wages until December 19, 2020.
And, an expanded Canada Emergency Business Account (CEBA) is also planned. Half of this additional financing would be forgivable if repaid by December 31, 2022. Additionally, the application deadline for CEBA is being extended to December 31, 2020. Further details, including the launch date and application process will be announced in the coming days. An attestation of the impact of COVID-19 on the business will be required to access the additional financing.