I hope everyone is taking advantage of the mild weather and getting outdoors. It is tough enough to not be able to gather with others but at least we can get some fresh air and maybe get in a little physical activity. The Federal Government and Province of Manitoba released some program updates.
Canada Emergency Wage Subsidy (CEWS) - The federal government has released the details of the CEWS for claim periods 11 - 13 which will cover from December 20, 2020 to March 13, 2021. For these claim periods the maximum top up subsidy rate is 35%, the maximum subsidy amount for employees on paid leave is $595 and the base revenue drop comparison months for period 11 will be the same as period 10. For periods 11 - 13 the maximum potential subsidy rate will be 75%. For a revenue drop of 70% or more the base subsidy rate is 40% and the top up rate is 35%. For a revenue drop between 50% to 69.99% the base subsidy rate is 40% and the top up rate is 1.75 x the difference between revenue drop and 50%. For revenue drops 49.99% or less the base rate is .8 times the drop and there is no top up. The rules and limits of periods 1 - 10 remain the same as they were before this latest update.
Manitoba Bridge Grant Program - The Province of Manitoba announced the extension and expansion of the MB Bridge Grant Program. The new application deadline is Jan 31, 2021. The program has been expanded beyond the Nov. 10, 2020 announcement, to provide $5,000 up-front to businesses, not-for-profits and charities directly impacted by the #RestartMB Pandemic Response System and temporarily ordered to close their storefronts to the public. The province then announced a program expansion Dec. 8, 2020 to support home-based businesses indirectly impacted by Manitoba COVID-19 public health orders, with up to $5,000 based on 10 per cent of their most recent calendar year revenues.
The program has now been expanded to include hotels, resorts, lodges and outfitters, travel agencies, janitorial services companies and owner/operators of licensed passenger transportation businesses that have seen demand for their service impacted by the public health orders.
For businesses that applied for and received a grant payment in December 2020 the second grant deposit is to occur automatically by Friday January 15, 2021 to a maximum of $10,000 total for both payments. Starting Jan. 12, 2021 new applicants to the Manitoba Bridge Grant that were ordered to close their premises will be entitled to a one-time payment of $10,000, whereas eligible home-based business applicants will receive a payment up to a maximum of $10,000.
We are continuing to process claims on behalf of all customers we have working with on the programs. We are also happy to support others to better understand how these program changes affect you. Feel free to contact us.
Greg Libbrecht and the team at Platinum Business Services