November 4th According to a report by Global News Canada on November 3, local time, the Canadian Emergency Rent Subsidy (CERS) will completely reform the government’s practice of reducing or exempting small business rents and extend the Canadian emergency wage subsidy until June 2021.
Canadian Finance Minister Chrystia Freeland introduced the bill on November 2.
The bill excludes landlords and provides direct assistance to small business owners. The new rent reduction plan will last until June 2021, and the key is to extend federal aid to the winter and the entire spring.
Dan Kelly, chairman of the Canadian Federation of Independent Business (CFIB), said that in the absence of the implementation of the bill, many companies would make a decision to close their doors permanently every day. He will urge lawmakers to make the necessary changes as soon as possible and pass the bill before the end of this week.
The new bill will cover eligible fixed property expenses, including rent and commercial mortgage interest, and the amount of subsidy depends on the income loss suffered.
For example, if income drops by 50% compared to the level before the new crown pneumonia epidemic, companies will be eligible for a subsidy of 40% of eligible expenditures.
In addition, companies affected by the government’s lockdown measures will increase their subsidies by 25%, which will increase the maximum subsidy to 90%.
Currently, only companies that have been completely closed due to the epidemic are eligible to receive it. The new subsidy standard will be implemented until December 19, after which the subsidy standard may be changed.
The Canadian government stated that the subsidies are for companies, charities and non-profit organizations whose income is declining. More details are yet to be determined.
The implementation period of the plan is from November 2020 to June 2021, and the subsidy application can be traced back to September 27 to October 24. The Canada Revenue Agency is responsible for this work.