Details on the new federal subsidy programs have been released, and will be backdated to become effective from October 24th, 2021 in order to seamlessly replace the CEWS and CERS programs which ended on October 23rd, 2021.
What are the New Subsidy Programs?
The new subsidy programs to replace the CEWS and CERS programs are:
- Tourism and Hospitality Recovery Program (THRP)
- Hardest-Hit Business Recovery Program (HHBRP)
The previous federal subsidy program, the Canada Recovery Hiring Program (CRHP), will remain in effect alongside the two new programs.
It is important to mention that the THRP and HHRP, because they will be replacing the CERS program, will include a rental component to the subsidy.
What are the Updates?
The new programs require a recorded revenue drop due to the Coronavirus pandemic.
However, how the revenue drops are determined has been updated for these programs (effective October 24th, 2021).
Tourism and Hospitality Recovery Program (THRP) Requirements:
- More than 50% of your revenue must come from one or more of the following industries: tourism, hospitality, arts, entertainment, and recreation. You can use this guide to determine if your business fits this requirement.
- A minimum 40% average revenue drop across the 12-month period between March 2020 and February 2021 (based on previous CERS/CEWS accounting methods).
- Your business has been affected by a public health order and a lockdown order has been issued in your local area. If your business has experienced a 40% revenue drop (according to the updated revenue test). What is a public health order restriction?
Hardest-Hit Business Recovery Program (HHBRP) Requirements:
- There are no eligibility restrictions based on the business sector that your organization belongs to.
- A minimum 50% average revenue drop across the 12-month period between March 2020 and February 2021 (based on previous CERS/CEWS accounting methods).
- A revenue drop of at least 50% during the claim period.
If your business/organization is eligible, wage subsidy calculation will be based on the CEWS program methods. You will only be able to apply for one of the programs (THRP, HHBRP, or CHRP).
Updates to Calculating Revenue Drops
- The updated revenue drop test will rely on a one-time calculation of the average revenue drop over the 12-month period between March 2020 and February 2021. The same method that an organization used to calculate revenue for CERWS/CEWS applications must be applied to this updated calculation.
- When the average revenue drop has been determined, it will be used as a baseline to calculate the revenue drops for the current months.
Updates to the Rent Subsidy Program
- The rent subsidy claim period will be backdated to October 24th, 2021.
- These rent subsidy claims will align with the new wage subsidy claims.
- Rent subsidies will be calculated with the same method as the old CERS program, however the required minimum revenue drop will be based on the updated THRP and HHBRP rules as outlined above.
