Targeted Government Support Programs for Worst-affected Businesses
The government has announced the following changes to business support programs:
- The Canada Recovery Hiring Program has been extended until May 7, 2022, for eligible employers with current revenue losses above 10% and increase the subsidy rate to 50%.
- Deliver targeted support to businesses that are still facing significant pandemic-related challenges, through two streams:
- Tourism and Hospitality Recovery Program, providing support through the wage and rent subsidy programs, to hotels, tour operators, travel agencies, and restaurants, with a subsidy rate of up to 75%.
- Hardest-Hit Business Recovery Program, providing support through the wage and rent subsidy programs and would support other businesses that have faced deep losses, with a subsidy rate of up to 50%.
- Applicants for these programs will use a new “two-key” eligibility system whereby they will need to demonstrate significant revenue losses over the course of 12 months of the pandemic, as well as revenue losses in the current month.
- Businesses that face temporary new local lockdowns will be eligible for up to the maximum amount of the wage and rent subsidy programs, during the local lockdown, regardless of losses over the course of the pandemic.
- These programs will be available until May 7, 2022, with proposed subsidy rates available through to March 13, 2022. From March 13, 2022, to May 7, 2022, the subsidy rates will decrease by half.
To ensure that workers continue to have support and that no one is left behind, the government proposes to:
- Extend the Canada Recovery Caregiving Benefit and the Canada Recovery Sickness Benefit until May 7, 2022, and increase the maximum duration of benefits by 2 weeks. This would extend the caregiving benefit from 42 to 44 weeks and the sickness benefit from 4 to 6 weeks.
- Establish the Canada Worker Lockdown Benefit which would provide $300 a week in income support to eligible workers should they be unable to work due to a local lockdown anytime between October 24, 2021 and May 7, 2022.
Read further details in the RSM Canada article.
More articles related to COVID-19: Business Resource Centre