We hope you have been able to take advantage the mild fall weather to date. The Federal Government announced changes to the subsidy programs.
The Canada Recovery Benefit (CRB) - will be replaced by the Canada Worker Lockdown Benefit for those whose work is directly impacted by government-imposed lockdowns.
The new program will be available until May 7, 2022, retroactive to Oct. 24, and will provide $300 a week to eligible workers.
The CEWS and the CERS (Wage and Rent) Programs are being replaced with two new programs to help hard-hit sectors. The Tourism and Hospitality Recovery Program (THRP) and the Hardest-Hit Business Recovery Program (HBRP) will also be available until May 7, 2022.
The THRP which will apply to operations such as hotels, restaurants, bars, festivals and travel agencies, requires applicants to show an average monthly revenue loss of at least 40 per cent for the first 13 qualifying periods of the Canada Emergency Wage Subsidy (CEWS) and a revenue loss of the same amount in the current month. Until mid-March 2022, the subsidy rate would reflect the revenue decline, up to 75 per cent, and then decline by half until the program’s expiration.
The HBRP applies to those that don’t fit under the tourism and hospitality umbrella but are still facing significant financial hurdles caused by the pandemic. Eligible businesses would have to show an average monthly revenue loss of at least 50 per cent over the first 13 qualifying periods of the CEWS and a revenue loss of the same amount in the current month. The maximum subsidy rate is to be set at up to 50 per cent until mid-March 2022 and then reduced by half until the program’s expiration.
The Canada Recovery Hiring Program, has been extended for businesses that can show a more than 10 per cent revenue loss, until May 7, 2022 at a subsidy rate of 50 per cent paid to eligible employees.
The Canada Recovery Sickness Benefit, and the Canada Recovery Caregiving Benefit will remain in place until the same time and are being extended by two weeks – moving the sickness benefit from four to six weeks and the caregiving benefit from 42 to 44 weeks. The government is able to extend these benefits to Nov. 20, 2021 through regulatory powers, but will require legislation to have them prolonged to their new expiration date.
This is a significant amount of change all at once. We will continue to support our clients by applying for subsidies for that they continue to be eligible for. For anyone else, we are happy to guide you through determining your eligibility and applying for applicable subsidies. Contact us and we will help.
Greg Libbrecht and the team at Platinum Business Services