Invoice C-9, the newest COVID-19 support invoice, handed within the Senate this week, extending the federal wage subsidy and introducing a brand new industrial lease subsidy program, as considerations develop for companies dealing with a brand new spherical of shutdowns amid a second wave of the pandemic.
The laws was fast-tracked by the Home of Commons the primary week of November and obtained royal assent Thursday after it was adopted at third studying within the Senate.
Here’s what meaning for Canadians:
ADDRESSING THE GAPS IN RENT SUBSIDIES FOR BUSINESSES
The Canada Emergency Lease Subsidy (CERS) will present new lease and mortgage curiosity assist to qualifying tenants and property homeowners till June 2021.
The brand new CERS covers as much as 65 % of eligible bills for companies, charities, and non-profits which were impacted by the pandemic. This consists of lease, property taxes, insurance coverage, and curiosity on mortgages for companies till December 19.
CERS replaces the earlier Canada Emergency Industrial Lease Help (CECRA) program, one which confronted harsh criticism from enterprise homeowners as a result of it required industrial property homeowners to use for the loans relatively than companies themselves.
The brand new laws supplies funds on to renters and property homeowners, no matter their landlord’s participation.
Nevertheless, a provision in Invoice C-9 that will require enterprise homeowners to pay their lease earlier than receiving the funding has already attracted criticism from the Canadian Federation of Unbiased Enterprise (CFIB). The business group notes that some enterprise homeowners can be mechanically excluded due to money stream challenges they’re already dealing with.
Deputy Prime Minister and Finance Minister Chrystia Freeland stated final week that the feds will desk a brand new invoice to handle the problem as soon as Invoice C-9 is handed.
NEW LOCKDOWN SUPPORTS
The brand new Lockdown Assist will present a further funds to organizations which are topic to a lockdown and should shut their doorways or considerably limit their enterprise beneath public well being order (together with orders made by a municipality or regional well being authority beneath a kind of legal guidelines).
Companies compelled to shut their doorways can be eligible for a 25-per-cent top-up. Claims will be made retroactively to September 27, 2020.
Mixed with CERS, this can imply that hard-hit companies topic to a lockdown might obtain lease assist of as much as 90 per cent.
EMERGENCY WAGE SUBSIDY EXTENDED
Invoice C-9 additionally sees the extension of the Canada Emergency Wage Subsidy (CEWS) till June 2021, protecting the present subsidy charge most at 65 per cent of eligible wages till December 19, 2020.
Underneath the earlier wage subsidy program, eligible employers have been topic to a 30 % income decline measurement, permitting them a payroll subsidy of 75 per cent.
Underneath the brand new laws, any enterprise with a income decline can be eligible. The subsidy can be proportional to the income drop, to a most of 65 per cent of eligible wages.