Throughout the pandemic, the Government of Canada has rolled out several subsidy programs aimed to provide financial support to businesses. These measures include:
- Temporary Wage Subsidy (TWS)
- Canada Emergency Wage Subsidy (CEWS)
- Canada Emergency Rent Subsidy (CERS)
- Lockdown Support
These subsidies and programs expired on October 23, 2021. In its place, Canada has proposed two new programs in their place specifically aimed at certain industries. Effective until November 20, 2021, two new programs have been introduced and described below. The government is also proposing to introduce legislation in future periods potentially extending these programs through July 2nd, 2022.
Tourism and Hospitality Recovery Program
Government of Canada introduced the Tourism and Hospitality Recovery Program targeting businesses in these industries that have been deeply affected during the pandemic. Example of these businesses include hotels, restaurants, travel agencies, convention centres, trade show organizers etc.
While details are still forthcoming, two eligibility requirements must be met to qualify are:
- During the initial 13 qualifying periods of the CEWs program, an average monthly revenue reduction of at least 40%
- A current month revenue loss of at least 40%
The eligible amount of the subsidy would be calculated based on a percentage of revenue decline up to a maximum of 75% in the initial periods.
Hardest – Hit Business Recovery Program
Businesses that do not qualify for the Tourism and Hospitality Recover Program who have similarly been affect by the pandemic could qualify for rent and wage relief through the Hardest-Hit Business Recover Program.
Like the Tourism and Hospitality Recover Program, the two eligibility requirements must be met to qualify are:
- During the initial 13 qualifying periods of the CEWS program, an average monthly revenue reduction of at least 50%
- A current month revenue loss of at least 50%
Under the Hardest – Hit Business Recover Program eligible businesses would receive up to a maximum of 50% subsidy based on a percentage of revenue decline in the current month.
For more information on the new subsidies or eligibility requires, please visit: https://www.canada.ca/en/department-finance/news/2021/10/targeting-covid-19-support-measures.html
