The Canada Emergency Rent Subsidy (CERS) was recently announced to replace the Canada Emergency Commercial Rent Assistance (CECRA) program in providing direct financial assistance for eligible fixed property expenses to businesses that are economically impacted by the COVID-19 pandemic.
Available retroactive to September 27, 2020, until June 2021, the new rent subsidy will provide benefits directly to eligible renters and property owners, without requiring landlord participation.
Subsidy Rate: Organizations that have suffered a revenue drop would be eligible for a subsidy on eligible expenses. A maximum base rate subsidy of 65% would be available to organizations with a revenue drop of 70% or more, which is gradually reduced to 40% with a revenue drop of 50%, and to zero for organizations not experiencing a revenue drop.
Eligible expenses: Commercial rent, property taxes, property insurance and interest on commercial mortgages for qualifying property.
Lockdown Support for Businesses Facing Significant Public Health Restrictions
Under the new Canada Emergency Rent Subsidy (CERS), organizations that are subject to a lockdown forcing them to close down or significantly limit activities by a public health order may be eligible for a top-up of 25% while facing lockdowns.
|Revenue Decline||Base subsidy rate||Lockdown Support|
|70% or more||65%||25%|
|69% – 50%||40% + (revenue drop – 50%) x 1.25||25%|
|49% – 1%||Revenue drop x 0.8||25%|
For more information on government support and funding solutions for your business contact us and speak with one of our innovation and business growth advisors.