Rent Relief Update:
NEW Canada Emergency Rent Subsidy (CERS) has replaced the failed CECRA program and will provide direct rental and mortgage support to eligible businesses until June 2021. If you qualify, the subsidy will cover up to 65% of eligible rent costs and the program will run until June 2021.
A top up of 25% will be available for lockdown support if your business is ordered to close its doors by public health officials.
You must meet all 4 of the following requirements to be eligible:
1. Meet at least one of these conditions:
a. You had a CRA business number on September 27, 2020.
b. You had a payroll account on March 15, 2020, or another person or partnership made payroll remittances on your behalf.
c. You purchased the business assets of another person or partnership who meets condition 2 above and have made an election under the special asset acquisition rules. These special asset acquisition rules are the same for the Canada Emergency Wage Subsidy (CEWS).
d. You meet other prescribed conditions that might be introduced.
Note: there are no prescribed conditions at this time.
– If you do not have a business number but qualify under b or c, you must set one up before you apply.
– You do not need a payroll account to apply for CERS.
2. Are an eligible business, charity, or non-profit (eligible entity)
– If your business, charity, or non-profit is related to another eligible entity, you may be considered an “affiliated entity”. This may affect your calculations for the subsidy.
3. Experienced a drop in revenue
– Calculated by comparing your eligible revenue during the reference period with your eligible revenue from a previous period (baseline revenue).
– There is no minimum revenue drop required to qualify for the subsidy. The rate your revenue has dropped is only used to calculate how much subsidy you receive for these periods.
4. Have eligible expenses
– Must have a qualifying property
– Only certain expenses for qualifying properties are eligible
Qualifying Property (Business Locations)
Properties that DO qualify include any “real or immovable property” (buildings or land) in Canada that your business or organization:
– owns or rents, and
– uses in the course of your ordinary business activities
Properties that DO NOT qualify, include:
– your home, cottage, or other residence used by you, family members, or other non-arm’s-length persons
– any properties you own that are primarily used to earn rental income from arm’s-length persons
For each claim period, you can claim eligible expenses up to a maximum of:
– $75,000 per business location (base and top-up)
– $300,000 in total for all locations (including any amounts claimed by affiliated businesses)
– applies to the base subsidy only
– there is no maximum for the top-up subsidy
Eligibility criteria for expenses
There are a few criteria expenses you need to meet, in order to be eligible to be included in your claim for a particular claim period.
– Only amounts paid or payable to an arm’s-length party can be included
– The expense must be in respect of the claim period
– The expense must be paid or payable under a written agreement in place before October 9, 2020 (or a renewal on substantially similar terms or assignment of such an agreement)
Note: If you have not paid the amounts due for your eligible expenses yet, you must attest (confirm) that these amounts will be paid within 60 days of receiving your rent subsidy payment.
You cannot claim expenses that were paid or payable:
– to non-arm’s-length entities
– for a timeframe that falls outside of the claim period you are applying for
Note: If you earned any revenue from sub-leasing space on the property to arm’s-length parties, you must subtract that revenue from your eligible expenses.
Applications are now open for the following claim periods:
Period 1: September 27 to October 24, 2020
Period 2: October 25 to November 21, 2020
Period 3: November 22 to December 19, 2020
Period 4: December 20, 2020 to January 16, 2021
For further information and assistance with CERS Contact Us
For more information, see the links below
For assistance in applying for this or other COVID-19 programs available
Written May 2, 2020, Updated January 18, 2021
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