With the introduction of the new rent subsidy, qualifying organizations that have suffered a revenue drop would be eligible for a subsidy on eligible expenses.
The maximum base rate subsidy would be 65 percent, and available to organizations with a revenue drop of 70 percent or more. The base rate would then decline to a rate of 40 percent for organizations with a revenue drop of 50 percent, and then would gradually reduce to zero for those not experiencing a decline in revenues. This structure mirrors the Canada Emergency Wage Subsidy rate structure.
Eligibility criteria for the new rent subsidy would generally align with the Canada Emergency Wage Subsidy program. Eligible entities include individuals, taxable corporations and trusts, non-profit organizations and registered charities.
In addition, an eligible entity must meet one of the following criteria:
- have a payroll account as of March 15, 2020 or have been using a payroll service provider;
- have a business number as of September 27, 2020 (and satisfy the Canada Revenue Agency that it is a bona fide rent subsidy claim); or
- meet other conditions that may be prescribed in the future.
Revenues will be calculated in the same manner as under the Canada Emergency Wage Subsidy program.
LOCKDOWN RENT SUPPORT
For organizations that are subject to a lockdown and must shut their doors or significantly limit their activities under a public health order issued under the laws of Canada, a province or territory (including orders made by a municipality or regional health authority under one of those laws), the government has a top-up under the new Canada Emergency Rent Subsidy to provide an additional 25 percent while they face lockdowns.
To apply for CERS, click here.