The Government of Canada has now introduced draft legislation that includes the new Canada Emergency Rent Subsidy (CERS) and the Lockdown Support Subsidy. The application process for these new subsidies is not yet available.
Under these proposed provisions, businesses, eligible charities and non-profits that experience a revenue drop will be eligible to claim a subsidy on eligible expenses, on a sliding scale up to a maximum of 65% of eligible expenses, including rent and interest on commercial mortgages, from September 27, 2020 until June 2021. The government has now provided details of the first stage of this new relief until December 19, 2020. Certain elements of this new subsidy mirror the Canada Emergency Wage Subsidy (CEWS), including a sliding rate scale and certain eligibility considerations. In addition to this new subsidy, organizations affected by a public health lockdown may also be eligible for a 25% Lockdown Support Subsidy.
To learn more about these proposed provisions, click here.
For more information, please contact your Lipton advisor.