Interest on commercial mortgages (subject to limits) for a qualifying property, less any subleasing revenuesĮxpenses for each qualifying period would be capped at $75,000 per location and an overall cap of $300,000 shared among entities.Property taxes (including school taxes and municipal taxes).The program covers fixed property expenses, which includes: The rent subsidy would be available retroactive to September 27, 2020, until June 2021.Ĭlick here for a graph that details the subsidy rate structure. If your business qualifies, it could receive an additional 25% of rent support, which could mean a rent subsidy of 90%. There’s also another layer of support for businesses whose revenues have dropped and have had to close their doors or limit their activities due to public health orders. For example: if your business experienced a revenue drop of 70% or more compared to pre-pandemic levels, you could receive a subsidy of up to 65% for eligible expenses. It’s available on a sliding scale to business owners, with the amount your business receives proportional to your revenue loss. The new rent subsidy is structured like the Canada Emergency Wage Subsidy. The amount of CERS support you receive is taxable and must be included as taxable income on your corporate tax return. The new program is administered by the Canada Revenue Agency and the Canada Mortgage and Housing Corporation.
A key change in the new program is that CERS can be claimed directly by qualifying small business tenants, unlike CECRA, which was only available to property owners. CERS replaces the Canada Emergency Commercial Rent Assistance program (CECRA). The subsidy covers eligible fixed property expenses, including rent. The Canada Emergency Rent Subsidy (CERS) program provides rent and mortgage support to qualifying businesses, charities and non-profits. What is the Canada Emergency Rent Subsidy? The federal government has launched a new rent relief program for small businesses impacted by COVID-19.īelow is a summary of the program.