COVID-19 Response Plan - Federal Government - Support for Canadians

Support for Businesses 

Tourism and Hospitality Recovery Program (THRP)

Eligibility

• Must be a qualifying tourism or hospitality entity (see complete list in Income Tax Regulation 8901.1(2) here) unless eligible through Local Lockdown Program (see below) as an organization affected by a qualifying public health restriction
• Must have average monthly revenue reduction of at least 40% from Mar 2020-Feb 2021
• Must have current month revenue loss of at least 40%

Benefit

• Wage and/or rent support available (separate applications required)
• Rate varies depending on level of revenue decline
• For periods 22-26, subsidy rate will range from 40% to 75%
• For periods 27-28, subsidy rate will range from 20-37.5%
• Additional rent subsidy available where entity has a location operating at reduced capacity due to a public health restriction for at least 7 days (fixed rate of 25% and prorated based on number of days the location was affected) 

Action Needed

• Program ended May 7, 2022; applications will be accepted for up to 180 days after each period end
• Eligible entities apply through the CRA’s My Business Account
• Persons representing a business may apply using Represent a Client
• Alternatively, an online application form will be available (wage subsidy only)
• Applicants need to calculate the estimated subsidy for their business prior to application

Hardest-Hit Business Recovery Program (HHBRP)

Eligibility

• For organizations that do not qualify for THRP
• Must have average monthly revenue reduction of at least 50% from Mar 2020-Feb 2021
• Must have current month revenue loss of at least 50%

Benefit

• Wage and/or rent support available (separate applications required)
• Rate varies depending on level of revenue decline
• For periods 22-26, subsidy rate will range from 10% to 50%
• For periods 27-28, subsidy rate will range from 5-25%
• Additional rent subsidy available where entity has a location operating at reduced capacity due to a public health restriction for at least 7 days (fixed rate of 25% and prorated based on number of days the location was affected) 

Action Needed

• Program ended May 7, 2022; applications will be accepted for up to 180 days after each period end
• Application process similar to process for THRP (above)
• More details about the HHBRP: Program Details (CRA)

Local Lockdown Program (LLP)

Eligibility

• For entities that do not qualify for THRP or HHBRP but require temporary support due to a qualified public health restriction
• Must have at least one location subject to a public health restriction lasting at least 7 days in claim period
• Must reasonably demonstrate at least 25% qualifying revenues for prior reference period were from activities restricted by public health lockdown
• Must have current month revenue decline of at least 40%

The Federal Government announced temporary measures under the LLP to expand support for periods 24 and 25 (December 19, 2021-February 12, 2022). On February 9, 2022, it was announced that these measures are intended to be further extended by one month, to March 12, 2022. The temporary measures include:

• Current month revenue decline of 25% (instead of 40%)
• Public health restriction will include a capacity restriction for activity of 50% or more (instead of a total restriction on activity)
• At least 50% of the applicant’s qualifying revenue must be derived from activities subject to the public health restriction (instead of 25%) 

Benefit

• Wage and/or rent support available (separate applications required)
• Rate varies depending on level of revenue decline
• For periods 22-23, subsidy rate will range from 40% to 75%
• For periods 24-26, as proposed, subsidy rate will range from 25-75% if subject to a qualifying public health restriction or qualifying partial (capacity-limiting) public health restriction
• For periods 27-28, subsidy rate will range from 20-37.5% 

Action Needed

• Program ended May 7, 2022; applications will be accepted for up to 180 days after each period end
• Same application process for THRP (above)
• More details about the LLP:
  • Program Details (CRA)
  • Temporary Measures 

Canada Recovery Hiring Program (CRHP)

Eligibility

• Eligible employers include Canadian-controlled private corporations, individuals, non-profit organizations, registered charities and certain partnerships
• Must have had a payroll account on March 15, 2020
• Employers qualify for the program if they have a drop in revenue (computed the same way as it was for the CEWS)

Benefit

• Support only available for active employees and will be available from June 6 to November 20, 2021
• Subsidy is equal to the incremental remuneration multiplied by an applicable hiring subsidy rate for a qualifying period
• Eligible remuneration for each employee is subject to a maximum of $1,129 per week
• Certain restrictions exist for non-arm’s length employees
• Must have experienced a revenue decline in the claim period or immediately prior claim period of more than 10%
• Eligible employers can claim either the CRHP or the CEWS for a particular period, but not both 

Action Needed

• Program ended May 7, 2022; applications will be accepted for up to 180 days after each period end

Enhanced Work-Sharing Program

Eligibility

• To be eligible for a WS agreement, businesses must be a year-round business in Canada for at least 1 year, be a private business or publicly held company, or have at least 2 employees in the WS unit
• Eligibility also extended to Government Business Enterprises and not-for-profit employers experiencing a shortage of work due to COVID-19 

Benefit

• Effective March 15, 2020 and extended to September 24, 2022, temporary special measures including extension of maximum possible duration of agreement from 38 to 76 weeks and a subsequent 26 weeks

Action Needed

• Employers must submit completed applications a minimum of 10 business days prior to requested start date
• More information, including links for applications, can be found here

Large Employer Emergency Financing Facility (LEEFF)

Eligibility

• Large for-profit businesses (with the exception of financial sector), as well as certain not-for-profit businesses, with annual revenues of $300 M or higher
• Eligible businesses must have significant operations or workforce in Canada, and not be involved in active insolvency proceedings

Benefit

• Provides bridge financing of $60 M or more to eligible entities

Action Needed

• Businesses seeking support must demonstrate intention to preserve employment and maintain investment activities
• Recipient companies required to publish annual climate-related disclosure reports