Changes to Canada’s COVID-19 Economic Response Plan
With the existing COVID-19 income and business support programs having ended as of October 23, 2021, the government is looking to introduce new measures targeting businesses still affected by the pandemic.
Canada Recovery Hiring Program
This is an extension of the current program until May 7, 2022 for eligible employers with current revenue losses above 10%. A subsidy rate of 50% is available on the increase in wages paid during the period compared to Spring 2021.
Tourism and Hospitality Recovery Program
This will provide support through wage and rent subsidy programs to hotels, tour operators, travel agencies, and restaurants, with a subsidy rate between 40 – 75%.
To qualify, a business must have average revenue losses of at least 40% in the current month and over 12 months compared to March 2020 to February 2021.
Hardest-Hit Business Recovery Program
This will provide support through the wage and rent subsidy programs to non-tourism and hospitality businesses that have faced deep losses, with a subsidy rate between 10 – 50%.
To qualify, a business must have average revenue losses of at least 50% in the current month and over 12 months compared to March 2020 to February 2021.
If full lockdown measures are enacted and the business has a revenue loss of 40% or more for the period, rent and wage subsidies are available without the 12-month revenue loss requirements.
The government is also proposing the following measures for individuals:
Canada Recovery Caregiving Benefit and Canada Recovery Sickness Benefit
An extension of the current programs until May 7, 2022, and increases to the maximum duration of benefits by 2 weeks.
Canada Worker Lockdown Benefit
This benefit will provide $300 per week in income support for eligible workers unable to work during a local lockdown between October 24, 2021 and May 7, 2022.
For more information about these new changes and the government of Canada’s COVID -19 Economic Response Plan, visit: https://www.canada.ca/en/department-finance/economic-response-plan.html
If you have any questions about how these programs may affect you or your business, please feel free to contact one of our offices and we would be happy to help.
Contact our Cranbrook office at (250) 426-1976 or our Creston office at (250) 428-2248.