March 12, 2022
Periods 27-28
March 13 – May 7, 2022
Current-month revenue decline
75% and over
50%
25%
50-74%
10% + (revenue decline – 50%) x 1.6
e.g., 10% + (60% revenue decline – 50%) x 1.6 = 26% subsidy rate
5% + (revenue decline – 50%) x 0.8
e.g., 5% + (60% revenue decline – 50%) x 0.8 = 13% subsidy rate
0-49%
0%
0%
Support in the Event of a Public Health Lockdown
To recognize the challenges that may arise from resurgences of the pandemic, organizations subject to a qualifying public health restriction would be eligible for support at the subsidy rates as calculated in the Tourism and Hospitality Recovery Program (see Table 1), regardless of sector, if they have one or more locations subject to a public health restriction (lasting for at least seven days in the current claim period) that requires them to cease activities that accounted for at least approximately 25 percent of total revenues of the employer during the prior reference period.
Applicants would not need to demonstrate the 12-month revenue decline, only a current-month decline. It would be available to affected organizations, regardless of sector.
Increasing the Monthly Cap on Eligible Expenses under the Canada Emergency Rent Subsidy
Under current rules, there is a monthly cap on eligible expenses that can be claimed under the Canada Emergency Rent Subsidy of $75,000 per business location and $300,000 in total for all locations (including any amounts claimed by affiliated entities).
To better respond to the needs of businesses, including hard hit businesses like hotels and restaurants, the government is proposing to make legislative amendments to increase the aggregate monthly cap from $300,000 to $1 million (including any amounts claimed by affiliated entities) starting on October 24, 2021.
This new monthly cap would be available to all eligible employers and organizations that meet the new eligibility requirements for the rent subsidy under the Tourism and Hospitality Recovery Program and the Hardest-Hit Business Recovery Program.
Extending the Canada Recovery Hiring Program
The Canada Recovery Hiring Program is set to expire on November 20, 2021. Budget 2021 provided the government with the authority to amend the program until the expiry date through regulations.
Today, the government is proposing to use this authority to update the subsidy rate for currently eligible employers. Specifically, the subsidy rate would be increased to 50 percent from October 24 to November 20, 2021.
The government is also proposing to introduce legislation to extend the hiring program at the new rate of 50 percent past November 20, 2021, until May 7, 2022, with authority for a further extension through regulations until July 2, 2022.
Under the proposed extension, the existing baseline period of March 14 to April 10, 2021, would continue to be used to calculate incremental remuneration. The existing eligibility rules would also continue to apply, including the required revenue decline of more than 10 percent.