COVID-19 Recovery Programs continue to provide support to Canadian businesses and organizations

CRA SOURCE ARTICLE

The Government of Canada remains committed to supporting Canadian businesses and organizations in the face of the ongoing pandemic. On Friday, December 17, 2021, the targeted COVID-19 support measures received Royal Assent. These measures will ensure that the hardest-hit sectors and those who are most affected by the pandemic will continue to receive the support they need. The government will remain vigilant to ensure businesses have the tools needed to deal with the impacts of the evolving Omicron variant while also supporting a strong economic recovery.

Today, the Honourable Diane Lebouthillier, Minister of National Revenue, announced further details on these measures including current application periods:

• Increasing the subsidy rate for the Canada Recovery Hiring Program from 20 per cent to 50 per cent. The increased rate will help organizations continue to hire back workers and create the additional jobs Canada needs for a full recovery. Applications for period 22 are now open, covering the period of October 24 to November 20, 2021.

• The Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy ended on October 23, 2021, and have been replaced by targeted support to organizations that are still facing significant pandemic-related challenges. Support will be available through two streams:

  • Tourism and Hospitality Recovery Program, which will provide support through wage and rent subsidies to, for example, hotels, tour operators, travel agencies, and restaurants, with a subsidy rate of up to 75 per cent. Eligible organizations would be required to meet the following two conditions to qualify for this program:

    • An average monthly revenue reduction of at least 40 per cent over the first 13 claim periods for the CEWS (12-month revenue decline); and

    • A current-month revenue decline of at least 40 per cent.

    • Applications for period 22 are now open, covering the period of October 24 to November 20, 2021.

  • Hardest-Hit Business Recovery Program, which will provide support through wage and rent subsidies. It will support other organizations that have faced deep losses, with a subsidy rate of up to 50 per cent. Eligible organizations would be required to meet the following two conditions to qualify for this program:

    • An average monthly revenue reduction of at least 50 per cent over the first 13 claim periods for the CEWS (12-month revenue decline); and

    • A current-month revenue decline of at least 50 per cent.

    • Applications for period 22 are now open, covering the period of October 24 to November 20, 2021.

• Increasing the monthly cap on eligible rent expenses that can be claimed. To better respond to the needs of organizations, the government is increasing the aggregate monthly cap on eligible expenses that can be claimed from $300,000 to $1 million (including amounts claimed by affiliated entities) starting on October 24, 2021.

These COVID-19 programs are extended until May 7, 2022, with the authority to further extend them, through regulation, until July 2, 2022.

The Canada Revenue Agency (CRA)’s top priority is to continue to ensure that the program application processes are simple and clear, and that subsidy payments get into the hands of those who need them, as quickly as possible. 

Quotes

• “Our government will be there for Canadians for as long as it takes to get through the COVID-19 crisis, and this suite of programs reflects that commitment. These COVID-19 support measures are targeted towards those who need it most and continue to prioritize job creation and a strong economic recovery. We are working closely with our partners to implement the targeted COVID-19 support measures as quickly as possible in order to address the financial hardship still being felt by Canadian businesses and workers.”

- The Honourable Diane Lebouthillier, Minister of National Revenue

Quick facts

• Getting set up with CRA’s My Business Account is the most convenient and quickest way to apply for and receive the subsidies you may be entitled to.

• The Canada Emergency Wage Subsidy has helped over 5.3 million Canadians remain employed through over $97 billion in wage support.

• The Canada Emergency Rent Subsidy has helped over 1.8 million Canadians remain employed through over $7 billion in rent/mortgage support.

• In order to maintain public confidence, and the integrity of Canada’s tax and benefits system, the CRA performs regular validation reviews. These reviews are designed to confirm that individuals are indeed eligible for the benefits they receive.

You can learn more about the taxpayer relief by visiting the CRA website or by scheduling a free consultation with us.