CRA Opens Applications For The Canada Emergency Rent Subsidy

November 24, 2020
Central/North Vancouver Island | Peace Cariboo Skeena | South Vancouver Island | Thompson Okanagan

The New Rent Subsidy Supports Businesses, Charities, And Non-Profits That Have Suffered A Revenue Drop By Providing Support Up To A Maximum Of 65 Per Cent Of Eligible Expenses

 

BRITISH COLUMBIA – Canada’s COVID-19 Economic Response Plan has helped to support millions of Canadian workers and businesses throughout the pandemic. Through the Canada Emergency Rent Subsidy (CERS), the Government is providing targeted, direct relief to businesses, non-profits, and charities that continue to face the economic impacts of the COVID-19 pandemic.

Applications are now open to qualifying organizations to receive CERS. These organizations can now apply directly for the subsidy for the period from September 27 to October 24, 2020 through the Canada Revenue Agency (CRA) My Business Account, or Represent a Client portals.

Applications for the second CERS period (October 25 to November 21, 2020) will open on November 30.

The new CERS is a successor to the Canada Emergency Commercial Rent Assistance (CECRA) and delivers direct, targeted, and accessible rent support to qualifying organizations affected by COVID-19 without the need to claim the assistance through their landlords.

In response to concerns raised by stakeholders about the program, the Government is proposing to amend the CERS in order to allow applicants to include eligible expenses in their CERS application before the expense has been paid. This means that organizations can include rent and other eligible amounts already paid in respect of a claim period as well as amounts that are payable for the claim period when submitting their CERS applications. Amounts that are not paid at the time of the application will have to be paid no later than 60 days after payment of the subsidy.

Eligible expenses include commercial rent, property taxes (including school taxes and municipal taxes), property insurance, and interest on commercial mortgages (subject to limits) for a qualifying property, less any subleasing revenues. Any sales tax (e.g., GST/HST) component of these costs is not be an eligible expense.

The CRA has launched a CERS online calculator and application form that are designed almost identically to those of the Canada Emergency Wage Subsidy (CEWS). The calculator guides applicants through a step-by-step process that allows them to determine the subsidy amount they can claim, based on the information they enter.  The CERS web pages include detailed information about eligibility requirements, how payment periods are structured, and how the subsidy is calculated.

Qualifying organizations that were required to shut down or significantly limit their activities under a public health order will have access to Lockdown Support, a top-up subsidy of 25 per cent, meaning that they could receive rent or property expenses support of up to 90 per cent.

The CRA will collect applications over the coming days and, on November 30, process applications received to date. Qualifying organizations whose claims successfully clear the CRA’s automated verification system and that are registered for direct deposit should expect to begin receiving payments starting on December 4.

In cases where the CRA does not have enough information on file to process a claim, we will ask organizations to provide us with additional information so that we can verify their eligibility before we process their application.

 

 

 

 

 

 

 

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