Cambridge Chamber of Commerce

The Federal Government has unveiled details of its new commercial rent subsidy program, the Canada Emergency Rent Subsidy (CERS).

 

This new program replaces the Canada Emergency Commercial Rent Assistance (CECRA) which by early October has delivered more than $1.8 billion in rent support to more than 130,000 small businesses.

 

The CERS will provide financial support to help businesses, charities and non-profits who’ve suffered a revenue drop due to the pandemic by subsidizing a percentage of their expenses on a sliding scale, up to a maximum of 65% of eligible expenses, until Dec. 19, 2020.

 

Unlike the CECRA, businesses do not require a 70% revenue decline to qualify. Even with a decline of 1%, businesses can still qualify.

 

For example:

 

  • 30% revenue decline;

  • $15,000 monthly rent for office space (before H.S.T.);

  • Calculation of subsidy is 0.8 x 30% = 24%, then 24% x $15,000 = $3,600/month. 

This means for each 1% of revenue decline, you are entitled to a 0.8% rent subsidy.  Once you hit a revenue decline of 50%, the calculation changes to a 1.25% subsidy for each 1% decline in revenue, up to a maximum subsidy of 65%.

 

Also, a top-up CERS subsidy of 25% will be available for companies that are temporarily shut down or “significantly limited” by a mandatory public health order. 

Applications will be made directly to the CRA (Canada Revenue Agency) for this subsidy, not through the landlord.

 

Expenses that are eligible for the CERS include commercial rent, property taxes and property insurance (capped at $75,000 per month).  This formula is applicable until Dec. 19, 2020 and retroactive to Sept. 27, 2020. 

 

More details outlining the program between Dec. 20, 2020 and June 2021 are expected to be released towards the end of this year.

 

The CRA is expected to announce shortly when businesses can begin to apply for the CERS.

 

For further details, visit:

www.canada.ca/en/department-finance/news/2020/11/canada-emergency-rent-subsidy.html

add a comment
Subscribe to this Blog Like on Facebook Tweet this! Share on LinkedIn

Contributors

Blog Contributor Portrait
Brian Rodnick
29
November 11, 2020
show Brian 's posts
Blog Contributor Portrait
Canadian Chamber of Commerce
23
August 13, 2020
show Canadian Chamber's posts
Blog Contributor Portrait
Cambridge Chamber
2
March 27, 2020
show Cambridge 's posts
Blog Contributor Portrait
Greg Durocher
39
September 25, 2017
show Greg's posts

Latest Posts

Show All Recent Posts

Archive

Tags

Everything Manufacturing Cambridge Events Spectrum New Members Taxes Region of Waterloo The Chamber Property Taxes Government Waste Cambridge Chamber of Commerce Networking Success Di Pietro Ontario Chamber of Commerce Greg Durocher Scott Bridger Food Blog Canada Ontario Cambridge Memorial Hospital Business After Hours Discounts Member Benefits Affinity Program Web Development Visa, MasterCard, Debit Big Bold Ideas Politics Elections Municipal Provincial NDP Liberals PC Vote Majority Christmas Homeless Leadership Oil Sands Environment Rail Pipelines Keystone Canadian Oil Canadian Chamber of Commerce Small Business Next Generation Cyber Security Millennials Energy Trump Washington Polls US Congress Bresiteers Trade NAFTA Europe Economy Growth Export Minimum Wage 15 dollars Bill 148 Cost Burdens Loss of Jobs Investing Finance Canada Capital Gains Exemption Tax Proposal MIddle Class Member of Parliment Unfair Changes Small Business Tax Fairness COVID-19 Mental Health Self-isolation Social Distancing Ways to Wellbeing Education Conestoga College Online Training Business Owners Personal Growth Communicate Young Professionals Workplace Communication Stress Emotionally and Physically Animals Pets Lockdown CEWS Employee Relief Employee Benefit Virtual Ceremonies Canada Emergency Rent Subsidy (CERS) Budget Ontario’s Action Plan: Protect, Support, Recover Federal Government Hotels and Restaurants Alcohol Tax Freezethealcoholtax Canadian Destinations Travel Grow your business Sales and Marketing Digital Restructure Financing Structural Regulatory Alignment Technological Hardware Digital Modernization RAP (Recovery Activiation Program) Support business strong economy Shop Cambridge Shop Local #CanadaUnited Domestic Abuse Family Funerals Weddings Counselling Anxiety Pandemic Getting Back to Work UV disinfection systems Disinfection Systems