Canada Emergency Rent Subsidy

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Time to read: 2 minutes

The government has finalized details of the new Canada Emergency Rent Subsidy, and the accompanying Lockdown Support program, which is the replacement program for the Canada Emergency Commercial Rent Assistance program. The new Rent Subsidy is a generous program, but the rules are complex.

Highlights of the program

  • The program will initially run from September 27 to December 19, 2020, but is expected to be extended through much of 2021.

  • Sole proprietors, partners and incorporated professionals are eligible. Unlike CECRA, this program can be applied for by tenants directly. And don’t let the name fool you – it’s open to property owners, as well as renters.

  • The amount of subsidy you receive will depend on the amount your revenue has decreased. The base subsidy is up to 65%, and businesses that have been forced to close are eligible for an additional 25% - meaning up to 90% of eligible expenses can be covered.

  • Eligible expenses include rent paid or payable

    • Associates at a clinic: Your contract needs to include a requirement to pay “rent for the use of, or right to use,” the property

    • Clinic owners who rent: Rent paid to your landlord and some other amounts may qualify

    • Property owners: Mortgage interest, property taxes and property insurance qualify, though there are restrictions

Who’s eligible

Most individuals, including sole proprietors, partnerships and corporations are eligible. In addition, you must meet at least one of the following requirements:

  1. You have a payroll account as of March 15, 2020

    • That means you have a Business Number that ends in “RP0001”

  2. You have a Business Number as of September 27, 2020, and satisfy the CRA that it is a bona fide rent subsidy claim

    • You’ll have a Business Number if you’re incorporated, registered for GST/HST, or have a payroll account

    • It’s unclear how the CRA will administer the “bona fide rent subsidy claim” requirement

  3. Other eligibility conditions could be added in the future

The qualifying property needs to be real or immovable property in Canada used in the course of your ordinary business activities. Residential property doesn’t count, even if you use a part of it for your clinic space.

How to apply

You can apply through the CRA, but first you’ll need to figure out how much you’re eligible for. We recommend waiting until your revenue and expense figures have been finalized, as the amount of the subsidy depends on these figures.

You’ll apply for the Rent Subsidy through the CRA’s My Business Account. Before applying, you’ll need to first create a CERS (ZA) business number, which is a simple step within your My Business Account. You’ll then see an additional section in your My Business Account for the Rent Subsidy.

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