On April 19, 2021, the Federal Government unveiled their proposed 2021 Federal Budget, entitled A Recovery Plan for Jobs, Growth, and Resilience (the "Budget"). The Budget focuses on the nation's continued economic recovery in the wake of the COVID-19 pandemic. To this end, the Federal Government is budgeting $1.29 billion for an extension of the Canada Emergency Rent Subsidy ("CERS") that will make it available to eligible businesses until September 25, 2021. The CERS program involves both a base subsidy, calculated based on a revenue decline (the "Base Subsidy"), and an additional top-up subsidy that is available to eligible businesses that are subject to a lockdown (the "Lockdown Support"). You can review our previous bulletins on CERS for a more detailed refresher on the program.
Before the Budget announcement, CERS was set to end on June 5, 2021. Although the program has been extended in the past, the legislation only allowed it to be extended until June 30, 2021. The Budget proposes to: (1) extend CERS until September 25, 2021 (the "Extended Claim Periods"); and (2) modify certain aspects of the program for a portion of the Extended Claim Periods. The Budget includes draft legislation that is intended to implement modifications to the program addressed in this bulletin. However, it is important to note that this draft legislation could be modified as it goes through the legislative process in the House of Commons and the Senate of Canada.
This bulletin summarizes important aspects of CERS, as currently outlined in the Budget, including the draft legislation.
Extended Claim Periods
CERS is being extended for four additional Extended Claim Periods (Periods 10-13) for which qualifying businesses can apply for both the Base Subsidy and Lockdown Support, as follows:
- Claim Period 10: June 6, 2021 to July 3, 2021
- Claim Period 11: July 4, 2021 to July 31, 2021
- Claim Period 12: August 1, 2021 to August 28, 2021
- Claim Period 13: August 29, 2021 to September 25, 2021
The Budget provides the Federal Government with legislative authority to further extend CERS until November 20, 2021, if the Federal Government so desires.
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