With both the Canada Emergency Rent Subsidy (CERS) and Lockdown Support program set to expire in June, the 2021 Federal Budget  has extended the programs to allow for a gradual phase-out, while still supporting businesses.

Both programs will run for an additional four periods, beginning on June 6, 2021, and ending on September 25, 2021.

Extending the CERS

The CERS will continue to provide a base subsidy based on revenue decline for eligible renters, with the Lockdown Support providing an additional 25% top-up subsidy if the renter is forced to close or reduce operations due to public health restrictions.

Similar to the extension of the Canada Emergency Wage Subsidy, the last three periods will require the renter to have a revenue decline of over 10% in order to be eligible. If this requirement is not met, the business will not be eligible for the CERS or Lockdown Support.

*Expenses for each qualifying period are capped at $75,000 per location and are subject to an overall cap of $300,000 that is shared among affiliated entities.

CERS Calculations for Periods 17 to 20

Relevant Periods for Calculating Revenues

  • Period 17 - July 6 to July 3
  • Period 18 - July 4 to July 31
  • Period 19 - August 1 to August 29
  • Period 20 - August 29 to September 25

 

 

Period 17

Period 18

Period 19

Period 20

Revenue decline:

70% and over

 65%  60%  40%  20% 
50-69% 40% + (revenue decline - 50%) x 1.25 (e.g., 40% + (60% revenue decline - 50%) x 1.25 = 52.5% subsidy rate) 35% + (revenue decline - 50%) x 1.25 (e.g., 35% + (60% revenue decline - 50%) x 1.25 = 47.5% subsidy rate) 25% + (revenue decline - 50%) x 0.75 (e.g., 25% + (60% revenue decline - 50%) x 0.75 = 32.5% subsidy rate) 10% + (revenue decline - 50%) x 0.5 (e.g., 10% + (60% revenue decline - 50%) x 0.5 = 15% subsidy rate) 
 >10-50%  Revenue decline x 0.8 (e.g., 30% revenue decline x 0.8 = 24% subsidy rate) (Revenue decline - 10%) x 0.875 (e.g., (30% revenue decline - 10) x 0.875 = 17.5% subsidy rate) (Revenue decline - 10%) x 0.625 (e.g., (30% revenue decline - 10) x 0.625 = 12.5% subsidy rate) (Revenue decline - 10%) x 0.25 (e.g., (30% revenue decline - 10) x 0.25 = 5% subsidy rate)
 0-10% 

Revenue decline x 0.8

(e.g., 5% revenue decline x 0.8 = 4% subsidy rate) 

  0% 0%  0% 

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.