Applications Can Now be Submitted for the
Canada Emergency Rent Subsidy (CERS)

On November 23, 2020, the CRA opened its online application portal to accept applications for the first CERS period covering eligible expenses incurred between September 27, 2020 and October 24, 2020.  

The application portal for the second CERS period, covering eligible expenses incurred between October 25, 2020 and November 21, 2020, is scheduled to open on November 30, 2020.

Applications can be made directly through CRA’s My Business Account or Represent A Client portals. 

Program Details

CERS is designed to support businesses, non-profit organizations and registered charities that continue to experience an economic downturn as a result of the COVID-19 pandemic by subsidising up to 65% of commercial rent or property expenses.  Organizations subject to a lockdown that must shut their doors or significantly limit their activities may be eligible for additional Lockdown Support of up to 25% of eligible expenses.

Eligibility

Individuals, taxable corporations and trusts, non-profit organizations and registered charities are eligible to participate in the program if the entity meets the following criteria:

  1. They have incurred eligible expenses; 

  2. They have experienced a decline in revenue; and

  3. They meet one or more of the following conditions:

    1. They had a payroll account on March 15, 2020;

    2. They had a CRA business number on September 27, 2020; or

    3. They meet other prescribed conditions that might be introduced at a later date.

Eligible expenses include rent, property taxes, property insurance and interest on commercial mortgages that were paid in respect of properties used in the entity’s ordinary business activities. 

To be eligible for Lockdown Support, the entity must meet the following additional criteria:

  1. They must have a base subsidy rate greater than 0% for the relevant claim period, as calculated below; and

  2. One or more of the entity’s locations must have been temporarily closed, or had its activities significantly restricted, for one week or longer due to a COVID-19 related public health order.

Note that a public health order that only restricts or reduces activities, but does not require business closure or the cessation of certain activities, does not qualify for lockdown support.

Subsidy Amount

The base subsidy rate applies to a maximum of $75,000 in eligible expenses per property subject to an overall maximum of $300,000 in eligible expenses per affiliated group.

The base subsidy rate is determined based on the revenue drop experienced by the entity as follows:

Graph-1.png
 

The additional lockdown support subsidy rate is determined on a location by location basis and is calculated as follows:

25% x number of days location was locked down during the claim period / 28

Claim Periods

The claim periods align with those already established for the Canada Emergency Wage Subsidy (CEWS) as the calculations required to determine the revenue drop are generally the same.  The following table outlines the claim periods that have been announced so far:

Graph-2.png
 

Additional Resources

For additional information on CERS, including access to CRA’s online calculator, please visit the following webpage:

https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-rent-subsidy.html

If you have any questions or require assistance submitting your claim, please contact your MAC advisor.