Government expands support programs to assist businesses.
On October 9, 2020, the government of Canada announced details of expanded support programs to assist businesses experiencing a decline in revenue. These include:
Canada Emergency Wage Subsidy (CEWS)
- As previously announced, the CEWS program will be extended until June 2021. Instead of the originally announced decline in the maximum subsidy rate in period 9 (Oct 25-Nov 21), it was announced that the maximum subsidy rate of 65% will be available from Sept 27, 2020 until Dec 19, 2020.
Canada Emergency Business Account (CEBA)
- The CEBA program has been expanded to allow qualifying businesses and not for profit organizations access to an additional $20,000 interest free loan. This loan would be in addition to the original $40,000 loan such that a maximum of $60,000 is available. The application deadline for CEBA was also extended to December 31, 2020.
Canada Emergency Rent Subsidy (CERS)
- A new rent subsidy available directly to tenants until June 2021 was announced. The new subsidy is available to businesses, charities and not for profit organizations that have suffered a revenue decline. The maximum available subsidy, available on a sliding scale, would be 65% of eligible expenses until December 19, 2020 with retroactive application to September 27, 2020.
- Where the organization was shut down by a mandatory public health order, an additional 25% subsidy is available on top of the 65% subsidy (maximum subsidy of 90%).
Further details on the above are to be announced soon.
If you have any questions or concerns, please do not hesitate to contact our team at (519) 673-3141 or through email at info@davismartindale.com.