Applications open for Canada Emergency Rent Subsidy

The Canada Emergency Rent Subsidy (CERS) is now accepting applications to offer direct relief to businesses, non-profits, and charities that continue to face the economic impacts of the COVID-19 pandemic.

Qualifying organizations can now apply directly for the subsidy for the period from Sept. 27 to Oct. 24, 2020 through the Canada Revenue Agency (CRA) My Business Account or the Represent a Client portals.

Applications for the second CERS period (Oct. 25 to Nov. 21, 2020) will open on Nov. 30.

In response to concerns raised by stakeholders about the program, the government is proposing to amend the CERS to allow applicants to include eligible expenses in their CERS application before the expense has been paid.

Organizations can now include rent and other eligible amounts already paid during the claim period as well as amounts that are payable for the claim period when they submit their application. Amounts that are not paid at the time of the application will have to be paid within 60 of payment of the subsidy.

The CRA has launched a CERS online calculator and application form that are designed almost identically to those of the Canada Emergency Wage Subsidy (CEWS). The calculator guides applicants through a step-by-step process that allows them to determine the subsidy amount they can claim, based on the information they enter. The CERS web pages include detailed information about eligibility requirements, how payment periods are structured, and how the subsidy is calculated.

The CRA will collect applications over the coming days and process applications received to date on Nov. 30. Qualifying organizations whose claims successfully clear the CRA’S automated verification system and that are registered for direct deposit should expect to begin receiving payments starting on Dec. 4. In cases where the CRA does not have enough information on file to process a claim, organizations will be asked to provide additional information to verify their eligibility before their application will be processed.

“I’m proud that the Canada Revenue Agency is once again stepping up to deliver another important program to businesses, charities, and nonprofits that will help them get through the second wave of the COVID-19 pandemic. The CERS is the seventh program delivered by the CRA since the start of the pandemic, and they have incorporated all the lessons and feedback from previous programs to provide businesses, charities and nonprofits with tailored support that is easily accessible and meets their needs. Canadian small businesses owners and employees can always count on the CRA to put people first, especially during their time of need.” - The Honourable Diane Lebouthillier, Minister of National Revenue

The new rent subsidy supports businesses, charities, and non-profits that have suffered a revenue drop by providing support up to a maximum of 65 per cent of eligible expenses.

Qualifying organizations that were required to shut down or significantly limit their activities under a public health order will have access to Lockdown Support, a top-up subsidy of 25 per cent, meaning that they could receive rent or property expenses support of up to 90 per cent.

Eligible expenses include commercial rent, property taxes including school taxes and municipal taxes, property insurance, and interest on commercial mortgages (subject to limits) for a qualifying property, less any subleasing revenues.