On October 21, 2021, the government of Canada made an announcement in respect of the future of various COVID-19 support programs. They include:
- The general Wage Subsidy (CEWS) and Rent Subsidy (CERS) will expire on October 23, 2021.
- The Hiring Subsidy (CRHP) will be extended until May 7, 2022 with the subsidy rate to be increased to 50%.
- Two new versions of the rent and wage subsidies will be introduced and set to expire May 7, 2022:
- The Tourism and Hospitality Recovery Program, would provide wage and rent subsidies, to hotels, tour operators, travel agencies, and restaurants, with a subsidy rate of up to 75%. Subsidy rates match revenue decline percentages, but only start at 40%.
- Hardest-Hit Business Recovery Program, would provide wage and rent subsidies to those who have experienced at least a 50% revenue decline, with a subsidy rate of up to 50%.
- Applicants under these programs will need to demonstrate significant revenue losses over the course of 12 months of the pandemic, as well as revenue losses in the current month. The 12-month revenue decline would be calculated as the average of all revenue decline percentages for eligible organizations from March 2020 to February 2021 (claim periods 1-13, excluding claim period 10 or 11). The actual subsidy rates are a function of the revenue decline calculated using the current month (and not the 12-month decline).
- Subsidy rates will be cut in half on March 13, 2022.
- The Caregiving Benefit (CRCB) and the Sickness Benefit (CRSB) will be extended until May 7, 2022.
- A new Canada Worker Lockdown Benefit will be established, providing $300 a week in income support to workers unable to work due to a local lockdown anytime between October 24, 2021 and May 7, 2022.
The above is for informational purposes only.