Covid Program Assistance for Business

THURSDAY, JANUARY 20

The Canada Emergency Wage Subsidy (CEWS) ended effective October 23, 2021 and has been replaced by a myriad of new programs designed by the federal government to provide more targeted support to those most directly affected by shutdowns. There are now three separate programs in play and special ways to qualify for these programs that were added as a result of fresh government restrictions. The patchwork of targeted programs is aimed at relatively narrow segments and fact situations. For qualifying organizations, these programs provide significant reimbursement for wages and rent.

The narrower eligibility criteria for assistance requires that your organization fit in one of these categories:

- A tourism or hospitality business with revenue down 40% over specific test periods. These companies qualify for the Tourism and Hospitality Recovery Program (THRP)

- A business that lost at least half its revenue as a result of a public health order which restricts capacity by at least half for at least a week during a claim period and suffered a revenue decline of greater than 40% during the claim period (or 25% during the period December 19, 2021 to February 12, 2022). These companies also qualify for the THRP even though they may not be in those sectors.

- An organization that suffered revenue declines averaging 50% during the first 13 periods of the CEWS program and during the claim period is down more than 50% using the same tests as the CEWS program. The organizations qualify for the Hardest Hit Recovery Program (HHRP).

In addition, companies can still apply for the Canada Recovery Hiring Program. Our previous newsletter described this program which is targeted to companies which (a) continue to suffer from declines from pre-pandemic revenue but are (b) increasing staff size above the staff on board in the spring of 2021 in anticipation of the recovery. If you meet both these tests this program should be considered.

The THRP and HHBRP offers wage and rent subsidies on a sliding scale based on the revenue decline (similar to the CEWS) as follows:

Tourism and Hospitality Recovery Program (THRP)
Subsidy rate of up to:
1. 75% from October 24, 2021 to March 12, 2022 (claim periods 22 to 26)
2. 37.5% from March 13, 2022 to May 7, 2022 (claim periods 27 and 28)

Hardest-Hit Business Recovery Program:
Subsidy rate of up to:
1. 50% from October 24 2021 to March 12, 2022 (claim periods 22 to 26)
2. 25% from March 13, 2022 to May 7, 2022 (claim periods 27 and 28)

The government also announced that the repayment of the CEBA loans has been delayed to December 31, 2023. The CEBA loans were up to $60,000 to qualifying companies with a portion forgiven provided the remainder was paid by the due date.

Ontario Programs:

Small Business Relief Grant:
A grant of up to $10,000 is available. Applications for this to be open in the coming weeks.

Eligibility Requirements:
a. Be required to close due to public health orders that took effect 12:01am on January 5, 2022
b. Have fewer than 100 employees
c. Be an active business as of January 14, 2022

Ontario Business Costs Rebate Program:
For those businesses required to reduce capacity to 50%, a rebate of 50% of property tax and energy costs incurred while subject to the public health measures.

For those businesses required to close for indoor activities, a rebate of 100% of property tax and energy costs incurred while subject to the public health measures.

Applications for this rebate opened January 18, 2022 and rebates will be retroactive to December 19, 2021

A full list of eligible business types as well as the online application can be accessed on the Ontario government website here.

Interest and Penalty Relief for Provincially Administered Taxes:
Ontario businesses have the ability to delay their payments for various provincially administered taxes including the Employer Health Tax during the January 1, 2022 to July 1, 2022 period. Any amount due during this time are due July 2, 2022. No interest or penalties will be charged if paid by July 2, 2022.