Dear RTO8 Stakeholders,
The Federal Government has announced plans to provide additional support to assist businesses impacted by COVID-19. A summary of the proposed legislation is outlined below. We will provide more information as it becomes available. The announcement is here.
Canada Emergency Rent Subsidy
The new Canada Emergency Rent Subsidy, which would provide simple and easy-to-access rent and mortgage support until June 2021 for qualifying organizations affected by COVID-19. The rent subsidy would be provided directly to tenants, while also providing support to property owners. The new rent subsidy would support businesses, charities, and non-profits that have suffered a revenue drop, by subsidizing a percentage of their expenses, on a sliding scale, up to a maximum of 65 percent of eligible expenses until December 19, 2020. Organizations would be able to make claims retroactively for the period that began September 27 and ends October 24, 2020.
A top-up Canada Emergency Rent Subsidy of 25 percent for organizations temporarily shut down by a mandatory public health order issued by a qualifying public health authority, in addition to the 65 percent subsidy. This follows a commitment in the Speech from the Throne to provide direct financial support to businesses temporarily shut down as a result of a local public health decision.
Canada Emergency Wage Subsidy
The extension of the Canada Emergency Wage Subsidy until June 2021, which would continue to protect jobs by helping businesses keep employees on the payroll and encouraging employers to re-hire their workers. The subsidy would remain at the current subsidy rate of up to a maximum of 65 percent of eligible wages until December 19, 2020. This measure is part of the government’s commitment to create over 1 million jobs and restore employment to the level it was before the pandemic.
Canada Emergency Business Account (CEBA)
An expanded Canada Emergency Business Account (CEBA), which would enable businesses, and not-for-profits eligible for CEBA loans—and that continue to be seriously impacted by the pandemic—to access an interest-free loan of up to $20,000, in addition to the original CEBA loan of $40,000. Half of this additional financing would be forgivable if repaid by December 31, 2022. Additionally, the application deadline for CEBA is being extended to December 31, 2020. Further details, including the launch date and application process, will be announced in the coming days. An attestation of the impact of COVID-19 on the business will be required to access the additional financing.
FedDev Ontario Covid 19-Regional Relief & Recovery Fund (RRRF)
The Regional Relief and Recovery Fund (RRRF) provides financial contributions (interest-free loans) to help support fixed operating costs of SMEs, where business revenues have been affected by the COVID-19 pandemic and they have been unable to access other Government of Canada measures. The Fund, valued at more than $1.5 billion nationally, is delivered by Canada’s regional development agencies. In southern Ontario, $436.4 million is available. Read more about the RRRF and partners here.