Canadian businesses, non-profit organizations, or charities who have seen a drop in revenue due to the COVID-19 pandemic may be eligible for a subsidy to cover part of their commercial rent or property expenses, starting on September 27, 2020, until June 2021.
This subsidy will provide payments directly to qualifying renters and property owners, without requiring the participation of landlords.
If you are eligible for the base subsidy, you may also be eligible for lockdown support if your business location is significantly affected by a public health order for a week or more.
Lockdown Support
Qualifying organizations that have been significantly affected by a mandatory public health order issued by a qualifying public health authority would receive an additional 25% of rent support through the CERS.
Combined with the other support received under the CERS, this means that hard-hit businesses, non-profits, and charities could receive a rent subsidy of up to 90%.
The CERS including the Lockdown Support would be available until June 2021.
Eligibility
- Meet at least one of these conditions:
- You had a CRA business number on September 27, 2020
- You had a payroll account on March 15, 2020, or another person or partnership made payroll remittances on your behalf
- You purchased the business assets of another person or partnership who meets condition 2 above, and have made an election under the special asset acquisition rules
- You meet other prescribed conditions that might be introduced
- Are an eligible business, charity, or non-profit (eligible entity)
- individuals (other than a trust)
- corporations (or trusts) that are not exempt from income tax (Part I of the Income Tax Act)
- the following persons that are exempt from income tax (Part I of the Income Tax Act):
- non-profit organizations
- agricultural organizations
- boards of trade
- chambers of commerce
- non-profit corporations for scientific research and experimental development
- labour organizations or societies
- benevolent or fraternal benefit societies or orders
- registered charities
- partnerships consisting of eligible employers (including partnerships where at least 50% of the interests in the partnership are held by eligible employers)
- the following prescribed organizations:
- certain Indigenous government-owned corporations that carry on a business
- partnerships consisting of eligible employers and certain Indigenous governments
- registered Canadian amateur athletic associations
- registered journalism organizations
- private schools or private colleges, and
- partnerships consisting of eligible employers (including partnerships where at least 50% of the interests in the partnership are held by eligible employers)
- Public institutions are not eligible for the subsidy. This includes municipalities and local governments, Crown corporations, public universities, colleges and schools, and hospitals.
- Experienced a drop in revenue
- There is no minimum revenue drop required to qualify for the subsidy. The rate your revenue has dropped is only used to calculate how much subsidy you receive for these periods.
- you can use the online calculator to find your revenue drop while calculating how much subsidy you may receive.
- Have eligible expenses
Periods you can apply for
- Open to apply now
- Claim period 1: September 27 to October 24, 2020
- Upcoming
- Claim period 2: October 25 to November 21, 2020
- Claim period 3: November 22 to December 19, 2020
Expenses you can claim
- Qualifying property
- Properties (business locations) that do qualify include any “real or immovable property” (buildings or land) in Canada that your business or organization:
- owns or rents, and
- uses in the course of your ordinary business activities
- Properties that do not qualify, include:
- your home, cottage, or other residence used by you, your family members, or other non-arm’s-length persons
- any properties you own that are primarily used to earn rental income from arm’s-length parties
- Properties (business locations) that do qualify include any “real or immovable property” (buildings or land) in Canada that your business or organization:
- Eligible expenses
For each claim period, you can claim eligible expenses up to a maximum of:- $75,000 per business location (base and top-up)
- $300,000 in total for all locations (including any amounts claimed by affiliated businesses)
- applies to the base subsidy only
- there is no maximum for the top-up subsidy
- Eligibility criteria for expenses
- There are a few criteria expenses need to meet, in order to be eligible to be included in your claim for a particular claim period.
- Only amounts paid or payable to an arm’s-length party can be included
- The expense must be in respect of the claim period
- The expense must be paid or payable under a written agreement in place before October 9, 2020 (or a renewal on substantially similar terms or assignment of such an agreement)
- You cannot claim expenses that were paid or payable:
- to non-arm’s-length entities
- for a timeframe that falls outside of the claim period you are applying for
How to Apply
- Sign up for My Business Account
- Review your mailing address and other contact information
- Create a CERS (ZA) number
- Set up direct deposit
- Confirm that the claim period you are applying for is open
- Gather the information you’ll need to calculate and apply for the subsidy
- For each qualifying property, you will need the:
- amounts you owe or have paid for all eligible expenses
- property address
- name and contact information of your
- mortgage holder if you have a mortgage on the property
- landlord if you rent the property
- The application form will accept information for up to 3 properties. If you have more than 3, enter information for the 3 properties with the highest eligible expenses.
- For each qualifying property, you will need the:
- Confirm you have completed the calculations
More Info
https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-rent-subsidy.html
