Canada Emergency Rent Support (CERS):

• The new CERS provides rent and mortgage support until June 2021 (as the previous program CECRA ended on September 26, 2020).
• The rent subsidy would be provided directly to tenants and would support qualifying organizations that have suffered a revenue drop, by subsidizing a percentage of their expenses, on a sliding scale, up to a maximum of 65 per cent of eligible expenses (until December 19, 2020, the rate is expected to change for periods after that date). 
• See table below that summarizes the subsidy structure: 

Eligible expenses: Include commercial rent, mortgage interest (subject to limits), insurance, property taxes paid by commercial property owners up to a maximum of $75,000 per location. Any sales tax (i.e. GST/HST) of these costs would not be an eligible expense. 

The Government also affirmed its intention to formalize rent payable (not yet paid) as an eligible expense. 

Limitations:

1. Payments made between non-arm’s-length entities would not be eligible expenses. 
2. Expenses are limited to those paid under agreements in writing before October 9, 2020 and would be limited to expenses related to real property located in Canada. 
3. Mortgage interest expenses in respect of a property primarily used to earn rental income, directly or indirectly, from arms-length entities would not be eligible

Eligible Entities: Include individuals, taxable corporations and trusts, non-profit organizations and registered charities. Eligible entities applying for the subsidy must also meet one of the following criteria:

1. Have a payroll account as of March 15, 2020 or have been using a payroll service provider;
2. Have a business number as of September 27, 2020 (and satisfy the Canada Revenue Agency that it is a bona fide rent subsidy claim); or
3. Meet other conditions that may be prescribed in the future 

Calculating Revenue Declines: These declines will be calculated in the same manner as CEWS with the same 65% maximum for all periods ending on or before December 19, 2020. CERS eligibility will need to be determined separately for each period, and a separate application will be required for each period.  The timing of the periods will match that of CEWS.

Claims can be made retroactively for the period that began September 27 and ends October 24, 2020.

An additional top-up Canada Emergency Rent Subsidy (the “Lockdown Support”) of 25 per cent  will be available for organizations temporarily shut down by a mandatory public health order issued by a qualifying public health authority.

Applications are due by the later of January 31, 2021, and 180 days after the end of qualifying period for both programs. On November 20, 2020, the Government of Canada announced that application for CERS will open on November 23, 2020.  Applications can be made through the organization’s My Business Account portal on the Canada Revenue Agency’s website.