Government of Canada Announces Two New Support Programs for Businesses Hit Hardest by COVID-19

On October 21, 2022, the federal government announced two new programs to replace the the Canada Emergency Wage Subsidy and the Canada Emergency Rent Subsidy.
Categories: Business Insurance
Oct 26th, 2021 | By: CapriCMW

As of October 23, 2021, the Canada Emergency Wage Subsidy and the Canada Emergency Rent Subsidy are no longer available. The federal government has introduced two new programs that will provide support to businesses most heavily affected by the COVID-19 pandemic, available as of October 24, 2021.

TOURISM AND HOSPITALITY RECOVERY PROGRAM

Businesses in the tourism and hospitality industry are among those that have suffered the most significant losses during the COVID-19 pandemic. This program is offering subsidies to cover up to 75% of eligible wage and commercial rent expenses. Qualifying businesses include hotels, restaurants, bars, travel agencies, tour operators, convention centres as well as convention and trade show organizers.

To be eligible, applicants must meet the following conditions:

  • average monthly revenue losses of at least 40% over a 12 month timeframe during the pandemic
  • a minimum revenue loss of 40% in the month the application is being submitted

Subsidies will start at 40% for those who meet the minimum threshold and increase proportionally up to 75%.

HARDEST-HIT BUSINESS RECOVERY PROGRAM

This program is targeted to businesses that have suffered signfiicant losses but do not qualify for the Tourism and Hospitality Recovery Program. Subsidies to cover up to 50% of wage and commercial rent expenses are available through the HHBRP.

To be eligible, applicants must meet the following conditions:

  • average monthly revenue losses of at least 50% over a 12 month timeframe during the pandemic
  • a minimum revenue loss of 50% in the month the application is being submitted

Subsidies rates will begin at 10% for those meeting the minimum revenue loss threshold.

Both the THRP and the HHBRP will be available until May 7, 2022. The current subsidy rates for both will apply until March 12, 2022. Between March 13, 2022 to May 7, 2022, the subsidy rates will be reduced by half.

PUBLIC HEALTH LOCKDOWN SUPPORT

Subsidies will also be available to any business, regardless of sector, affected by a government-imposed public health lockdown (lasting seven days or more), in which one or more locations must close that accounted for 25% or more of its total revenues. The THRP subsidy rates will apply in this case.

To learn more about the programs, eligibility requirements and revenue loss calculation methods, see the official government news release.

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