CEWS, CERS and CRB Will Expire on October 23rd, 2021
Minister Chrystia Freeland announced on Thursday that existing COVID-19 support programs will expire as scheduled on Saturday, including the Canada Recovery Benefit (CRB), Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS).
These programs will be replaced with two new, targeted programs: one is a wage and rent support program aimed at the tourism sector called the Tourism and Hospitality Recovery Program. An average monthly revenue decline of at least 40% is required to be eligible. The 12-month revenue decline would be calculated as the average of all revenue decline percentages for eligible organizations from March 2020 to February 2021. Any periods in which an entity was not carrying on its ordinary operations for reasons other than a public health restriction (for example, because it is a seasonal business) would be excluded from this calculation.
The second is called the Hardest Hit Business Recovery Program. It is aimed at employers that can show they have faced deep and enduring losses due to COVID-19. It will also provide wage and rent supports, up to a maximum subsidy of 50 per cent for businesses that have experienced a 75 per cent drop in revenue. These two programs will run until May 7, with support levels decreasing after March 13.
The minister also announced a new lockdown support program in the event that the pandemic leads to new restrictions on businesses, called the Canada Worker Lockdown Benefit. It would provide $300 a week in income support for workers who are unable to work due to a lockdown.
Specifics on these new programs have yet to be made available. Once we receive any information on these new programs, we will feature them in our newsletter.
Eligible operators can continue to apply to receive a wage subsidy through the Canada Recovery Hiring Program until November 20th, 2021.