Last week, the government announced its intention to introduce new, targeted supports to help hard-hit businesses experiencing a drop in revenue due to the pandemic. The government will introduce legislation shortly to create the new Canada Emergency Rent Subsidy, extend the Canada Emergency Wage Subsidy and expand the Canada Emergency Business Account.

The new Canada Emergency Rent Subsidy will provide rent and mortgage support until June 2021 for qualifying organizations affected by COVID-19. This subsidy will be provided directly to tenants, while also providing support to property owners. Businesses, charities and non-profits that have suffered a revenue drop will be eligible to have a percentage of their expenses subsidized, on a sliding scale, up to a maximum of 65 percent of eligible fixed property expenses until December 19, 2020. Eligible fixed property expenses include rent and interest on commercial mortgages. Organizations will be able to make claims retroactively for the period beginning September 27 and ending October 24, 2020.

Organizations that have been temporarily shut down by a mandatory public health order issued by a qualifying public health authority will be eligible for a 25 percent top-up to the Canada Emergency Rent Subsidy. This will subsidize up to 90 percent of eligible expenses for businesses temporarily shut down as a result of a local public health decision.

The Canada Emergency Wage Subsidy (CEWS) will be extended until June 2021. The subsidy will remain at the current rate of up to 65 percent of eligible wages until December 19, 2020.

The Canada Emergency Business Account (CEBA) will be expanded to allow businesses, and not-for-profits eligible for CEBA loans — and that continue to be seriously impacted by the pandemic — to access an interest-free loan of up to $20,000, in addition to the original CEBA loan of $40,000. Half of this additional financing is forgivable if repaid by December 31, 2022. An attestation of the impact of COVID-19 on the business will be required to access the additional funding. The application deadline for CEBA will also be extended to December 31,