In pursuing its support for the economy, the federal government has released new measures to continue to support employed and self-employed individuals, businesses and nonprofit organizations including charities.
Support measures for Businesses
You may recall that during the past summer the government announced the discontinuance of the CEWS[1] and CERS[2] in favor of more industry targeted wage and rent support.
An employer in Canada who has seen a drop in revenue during the COVID-19 pandemic, may be eligible for a subsidy to cover part of the wages paid to employees. This subsidy will enable the affected business to re-hire workers, help prevent further job losses, and ease the business back into normal operations.
For each applicable claim period, eligible employers can claim one of the following newly introduced industry targeted wage and rent support, whichever gives the highest amount:
- The Canada Emergency Business Account Program(CEBA)
- Tourism and Hospitality Recovery Program (THRP) – Wage & Rent
- Hardest-Hit Business Recovery Program (HHBRP) – Wage & Rent
- Canada Recovery Hiring Program (CRHP) – Wage
The Canada Emergency Business Account Program(CEBA)
The Canada Emergency Business Account (CEBA) program has provided interest-free, partially forgivable loans to small businesses to help them navigate the pandemic and remain resilient. However, in recent weeks, the effects of the pandemic have delayed the recovery for businesses in many parts of the country.
On January 12, 2022, the Government of Canada, announced that the repayment deadline for CEBA loans to qualify for partial loan forgiveness is being extended from December 31, 2022, to December 31, 2023, for all eligible borrowers in good standing. Repayment on or before the new deadline of December 31, 2023, will result in loan forgiveness of up to a third of the value of the loans (meaning up to $20,000).
Outstanding loans would subsequently convert to two-year term loans with interest of 5 per cent per annum commencing on January 1, 2024, with the loans fully due by December 31, 2025.
Tourism and Hospitality Recovery Program (THRP) – Wage & Rent
Effective coverage period: | · October 24, 2021, to May 7, 2022 |
General Eligibility Criteria: |
OR
OR
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Type of Employers: |
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Industry specific employer: | |
Eligible Employees: |
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Hardest-Hit Business Recovery Program (HHBRP) – Wage & Rent
Effective coverage period: | · October 24, 2021, to May 7, 2022 |
General Eligibility Criteria: |
OR
OR
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Type of Employers: |
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Industry specific employer: | |
Eligible Employees: |
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Canada Recovery Hiring Program (CRHP) – Wage
The CRHP is a hiring subsidy which will support employers with a subsidy of up to 50% on incremental remuneration paid to eligible working employees (I.e., the portion of remuneration exceeding the remuneration of the baseline period). It will be offered from June 6, 2021, to May 7, 2022, with further possible extension into July 2022 to qualifying employers who have seen a drop in revenue due to COVID-19.
The purpose of this subsidy is to assist employers in hiring employees, to re-hire furloughed workers or simply increase the current remuneration to help prevent job losses or to assist in salary increases.
For each applicable claim period, the eligible employer can claim the highest amount of either of the above 3 programs.
The Highly Affected Sectors Credit Availability Program (HASCAP)
This program provides heavily impacted businesses access to guaranteed, low interest commercial loans of up to $1 Million to help finance day-to-day business operating costs.
Effective Program Dates: | · From June 6, 2021, to March 31, 2022 |
General Eligibility Criteria: |
AND
AND
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Type of Employers: |
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Industry specific employer: |
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Program details: |
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Support measures for self-employed workers, individuals and their families
Canada Worker Lockdown Benefit (CWLB)
On October 23, 2021, the Government ended the Canada Recovery Benefit (CRB) for employed and self-employed individuals. The CRB has been replaced the CWLB. The CWLB is intended to support eligible workers and employees who are unable to work due to a local lockdown anytime between October 24, 2021, and May 7, 2022.
Effective Program Dates: | · From October 24, 2021, to May 7, 2022 |
General Eligibility Criteria: |
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Coverage and amount: |
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Canada Recovery Sickness and Caregiving Benefits (CRSB & CRCB)
Originally, these 2 programs were supposed to sunset on October 23, 2021, but the Government announced that these 2 programs will be extended until May 7, 2022.
RSW can assist you
RSW staff and partners recognize and acknowledge the looming uncertainties and challenges that you and/or your business may face during the COVID-19 recovery periods, and we encourage you to reach out to anyone of us to assist you assess the different relief program and how they affect you or your organization and guide you in determining the following steps.
[1] Canada Emergency Wage Subsidy [2] Canada Emergency Rent Subsidy [3] The CRA website contains a list of 21 eligible activities as tourism and hospitality https://www.canada.ca/en/revenue-agency/services/wage-rent-subsidies/tourism-hospitality-recovery-program/trhp-activities-qualify.html [4] ibid [5] For the THRP, the affected business needs to determine the average of all of the applicable revenue drops and increases experienced from March 2020 to February 2021 (CEWS claim periods 1 to 13, excluding the revenue drop for either period 10 or 11). This is a one-time calculation. [6] Each claim period, you will need to know how much your eligible revenue has dropped since before the pandemic. The drop in revenues calculation parameter is the same as the one previously used for the CEWS and CERS [7] For the THRP, the affected business needs to determine the average of all of the applicable revenue drops and increases experienced from March 2020 to February 2021 (CEWS claim periods 1 to 13, excluding the revenue drop for either period 10 or 11). This is a one-time calculation. [8] Each claim period, you will need to know how much your eligible revenue has dropped since before the pandemic. The drop in revenues calculation parameter is the same as the one previously used for the CEWS and CERS [9] Employees who are eligible to receive EI benefits [10] The income sources are employment, self-employment, maternity/parental, employment insurance and COVID-19 Benefit