New federal rent subsidy program open for applications

Qualifying organizations, as of Nov. 23, can apply directly for the new Canada Emergency Rent Subsidy through the Canada Revenue Agency.

This can be done without the need to claim the assistance through their landlords, according to a government news release.

Applicants can claim the subsidy retroactively for the period that began Sept. 27 and ended Oct. 24.

The CERS provides direct support of up to 65 per cent of eligible expenses to tenants and property owners for qualifying organizations affected by COVID-19.

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. Any sales tax component of these costs would not be an eligible expense.

Qualifying organizations that are subject to a lockdown and must shut their doors or significantly limit their activities under a public health order may be eligible for additional Lockdown Support of 25 per cent of eligible expenses.

The government says it is proposing to amend the CERS in order to allow applicants to include eligible expenses in their application before the expense has been paid. This means that organizations can include rent and other eligible amounts already paid in respect of a claim period, as well as amounts that are payable for the claim period, when submitting applications. Amounts that are not paid at the time of the application will have to be paid no later than 60 days after payment of the subsidy.

To be eligible, organizations must be individuals, taxable corporations and trusts, non-profit organizations or registered charities. Public institutions are generally not eligible for the subsidy.

Qualifying organizations can apply through the CRA'S My Business Account or Represent a Client.

Additional information is available on the CERS How to apply web page.