Canada Emergency Commercial Rent Assistance Program:

Yesterday the government announced that they are working on a program to assist small and medium sized businesses affected by COVID-19 with their commercial rent payments. The government did not provide any details on this program. We expect further details in the coming days.

CERB Update:

The federal government is making changes to its Canada Emergency Response Benefit (CERB) for those whose income is drastically cut but who still have some income. The changes will also allow people who are making up to $1,000 a month to qualify for the Canada Emergency Response Benefit, as well as those whose employment insurance benefits have run out since the start of the calendar year. The changes begin to address key concerns about who qualifies for the $2,000-a-month benefit, which was quickly put in place earlier this month to deal with the pandemic’s economic fallout.

Canada Emergency Business Account ($40,000 loan):

The government announced that they are amending the 2019 gross payroll required to qualify to between $20,000 and $1,500,000 (previously $50,000 and $1,000,000).

See the link here for more information on this loan program.

The Canada Emergency Wage Subsidy (“CEWS” - 75% Wage Subsidy) Clarifications:

There has also been some clarifying comments with respect to the 75% wage subsidy.

  • The 75% wage subsidy is based on remuneration that is earned by the employee in the eligible period (previously communicated that the subsidy was based on when remuneration was paid).
  • The 75% subsidy is the greater of
    1. 75% of the weekly remuneration paid in the qualifying period to a max weekly amount of $847.
    2. The lesser of
      1. 75% of the employee’s pre-crisis remuneration (average weekly remuneration paid between January 1, 2020 and March 15, 2020), and
      2. The actual amount paid, to a maximum of $847 per week.
  • Special rules for the calculation of revenue are provided where companies are affiliated with each other (options of calculating on a consolidated or non-consolidated basis), or where all or substantially all of a company’s revenue comes a non-arm’s length entity (calculating the revenue loss using the non-arm’s length arm’s length sources of revenue)

  MATA will continue to offer information as it becomes available.