As many businesses are safely reopening and many returning to work; Canadians are slowly recovering from the fight against the COVID-19. Canada is on the road to economic recovery, but some businesses continue to struggle and still in need of support from the government.
On October 23rd, 2021, the Government of Canada announced the end of the existing support programs such as the Canada Emergency Wage Subsidy (CEWS), Canada Emergency Rent Subsidy (CERS) and the Canada Recovery Benefit (CRB).
However, the government has proposed new programs to help businesses still in need of support. These programs began on October 24th, 2021 and is available until May 7th, 2022. The following new programs proposed are:
- Tourism and Hospitality Recovery Program
This program provides support through the wage and rent subsidy programs to hotels, restaurants, travel agencies and tour operators with a subsidy rate up to 75%.
- The eligible organization must have an average monthly revenue deduction of at least 40% over the first 13 qualifying periods for the Canada Emergency Wage Subsidy (12-month revenue decline)
- The eligible organization’s current month revenue loss is at least 40%
- Hardest-Hit Business Recovery Program
This program provides support to organizations that do not qualify for the Tourism and Hospitality Recovery Program but have been deeply affected due to COVID-19. This provides support through the wage and rent subsidy programs with a subsidy rate of up to 50%.
- The eligible organization must have an average monthly revenue deduction of at least 50% over the first 13 qualifying periods for the Canada Emergency Wage Subsidy (12-month revenue decline)
- The eligible organization’s current month revenue loss is at least 50%
- Canada Worker Lockdown Benefit
The Canada Worker Lockdown Benefit was proposed the Government of Canada and it provides income support to eligible workers who cannot work because their employment is interrupted by specific government-imposes public health lockdown scenarios and who are unable to work due to such restrictions. This program is available until May 7, 2022.
Eligible workers can apply for the Canada Worker Lockdown Benefit and can receive a $300 benefit. Eligible workers must meet the criteria to receive this benefit:
- Strictly available to workers whose work was interrupted because of a government-imposed public health lockdown.
- Available to workers who are not eligible for Employment Insurance (EI), and those who are eligible for EI, but are not paid benefits through EI for the same period.
This benefit is available for the entire duration of a government-imposed lockdown and is available until May 7, 2022.
Please note at this time these subsidies are still in the proposal stage and information is still to come. Please visit the Canada Revenue Agency website for updated information.