Many of you have probably heard about CERS (Canada Emergency Rent Subsidy) that came into effect November 23, 2020, which is replacing the Canada Emergency Commercial Rent Assistance (CECRA) program. Don’t worry, we are here to walk you through it!
First, you’re probably wondering if you qualify for CERS. The main criteria are as follows:
- You had a CRA business number on September 27, 2020 OR a payroll account on March 15, 2020. If you purchased business assets that meet one of those two requirements, you are also eligible.
- You are an eligible business, charity or non-profit
- Experienced a drop in revenue (there is no minimum required revenue drop)
- Have eligible expenses
CRA – Who Can Apply
CERS first qualifying claim period begins retroactively on September 27, 2020 and ends October 24, 2020. You have 180 days from October 24, 2020 to submit a CERS claim for this period. The way the program works is to subsidize a percentage of your eligible expenses (up to 65%) until June 2021, up to $75,000 per period or $300,000 total for all locations in that period. Included in the eligible expenses are property taxes (including municipal and school taxes), property insurance, interest on commercial mortgages and commercial rent.
CRA – Calculate Subsidy Amount
A big change from CECRA is that if your business has been affected by a Public Health Order and you’ve had to shut down or severely limit your services, you could be eligible for an additional 25% Lockdown Support. More detailed information on whether your business qualifies for this can be found on the CRA website.
In order to ensure that claimants receive their funds in a timely manner, the CRA have created an automated verification system that can compare claimant information with the information CRA has on file previously. This means there will be minimal manual administrative intervention, expediting the process.
Additional information can be found on the CRA website.
If you have any questions or require assistance with your application, please don’t hesitate to contact us, we would be more than happy to help!
“Be kind, be calm and be safe” – Dr. Bonnie Henry