The federal government outlined pandemic recovery benefit programs, which focused on provided support to businesses in the economic sectors hit hardest by the pandemic. Among the programs introduced was the Tourism and Hospitality Recovery Program and details of the eligibility requirements for that Program, and the kinds of assistance to be provided, have now been announced.
The basic eligibility requirements for the Program are relatively straightforward, in that organizations are required to meet the following two conditions to qualify:
- an average monthly revenue reduction of at least 40%, as measured from March 2020 to March 2021; and
- a current-month revenue loss of at least 40%.
Qualifying organizations which meet the revenue loss conditions will be eligible for wage and rent subsidies for the period of October 24, 2021 to May 7, 2022. Actual subsidy rates will start at 40 percent for eligible organizations with a 40-per-cent current-month revenue loss, increasing thereafter in proportion to current-month revenue loss up to a maximum rate of 75 percent for those with a current-month revenue decline of 75 percent or higher.
Full subsidy rates (based on percentage revenue loss) will be provided for the period from October 24, 2021 to March 12, 2022. Those subsidy rates will then be reduced by half from March 13 to May 7, 2022.
Further information on the list of the types of organizations can be found on the Finance Canada website athttps://www.canada.ca/en/department-finance/news/2021/11/types-of-business-eligible-for-the-tourism-and-hospitality-recovery-program.html
More information on the Program is available on the Finance Canada website at https://www.canada.ca/en/department-finance/news/2021/10/targeting-covid-19-support-measures.html