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

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

Synopsis
15 Minute Read

COVID-19 Response Plan
Federal Government – Support for Canadians
Last updated January 19, 2022, 11:00 a.m. MST

Insight
Insight

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

  • Effective October 24, 2021 to May 7, 2022
  • Separate application required for each claim period (and for each payroll account for wage subsidy)
  • 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
  • Deadline to apply is 180 days after the end of each claim period
  • More details about the THRP: Program Details (CRA)

Hardest-Hit Business Recovery Program (HHBRP)

Eligibility

  • For organizations that do not qualify for THRP
  • Must have average monthly revenue reduction of at least 40% 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

  • Effective October 24, 2021 to May 7, 2022
  • 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%

On December 22, 2021, the Federal Government also proposed temporary measures under the LLP to expand support for periods 24 and 25 (December 19, 2021-February 12, 2022). No regulations have been published to date on the temporary measures. Proposed 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%)

[Note no regulations have been released to implement the proposed temporary measures as of today]

  • 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) 

Benefit

  • Wage and/or rent support available (separate applications required)
  • Rate varies depending on level of revenue decline
  • Same subsidy rates as THRP (above) apply 

Action Needed


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

  • Extended to May 7, 2022
  • For more information on the CRHP, see MNP Insight

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
  • More information available:

Highly Affected Sectors Credit Availability Program (HASCAP)

Eligibility

  • Small and medium-sized Canadian-based businesses that have seen their revenues decrease by 50% or more as a result of COVID-19
  • Business must have been financially stable and viable prior to current economic situation
  • Business must have received payments either from the CEWS or the CERS by having demonstrated a minimum 50% revenue decline for at least 3 months (not necessarily consecutive) within the 8-month period prior to date of HASCAP Guarantee application
  • Loan must be used to continue or resume operations (not for repayment of existing financing)

Benefit

  • The guarantee covers amounts ranging from $25,000 to $1 M
  • Loans are low interest bearing with repayment terms up to 10 years

Action Needed

  • Up to a 12-month postponement of principal payments at start of loan Government has mandated BDC to provide a guarantee to financial institutions for 100% of value of new term loan
  • Application is through financial institution (can apply at one institution only)
  • Program is extended to March 31, 2022
  • More details and FAQ available here 

Support for Individuals

Employment Insurance (EI) (sickness benefits)

Eligibility

  • Employees who are:
    • Sick,
    • Shortage of work
    • Seasonal or mass lay-offs

Benefit

  • 55% of average insurable weekly earning, up to $573/week for up to 15 weeks
  • Available beginning March 15, 2020

Action Needed

  • Initial online application; then must call 1-833-381-2725 to waive one-week waiting period
  • Medical certificate not required

Employment Insurance (EI) (regular benefits)

Eligibility

  • Employees who lost jobs through no fault of their own (ex. due to shortage of work, seasonal or mass lay-offs) and are:
    • Available and able to work
    • Unable to find a job

Benefit

  • 55% of average insurable weekly earning, up to $573/week for up to 14-45 weeks
  • Available beginning immediately but must be without work and pay for 7 consecutive days to be eligible

Action Needed

  • Apply online within four weeks of last day of work
  • Must complete bi-weekly reports to prove continuing eligibility
  • Claims starting March 15, 2020 will have benefits delivered as part of CERB; for details see:


Canada Recovery Sickness Benefit (CRSB)

Eligibility

  • For workers who are sick or must self-isolate for reasons related to COVID-19
  • Unable to work at least 50% of scheduled work week
  • Did not apply for or receive other individual income support benefits during the period (e.g., EI, CRCB, CWLB, etc.)
  • $5,000 minimum earned income requirement in 2020, 2021 or in 12 months prior to date of application

Benefit

  • $500 per week (subject to withholding tax) up to a maximum of 6 weeks (do not have to be consecutive) between September 27, 2020 and May 7, 2022

Action Needed


Canada Recovery Caregiving Benefit (CRCB)

Eligibility

  • For eligible Canadians unable to work because they must care for a child or family member for reasons related to COVID-19
  • Unable to work at least 50% of scheduled work week
  • Did not apply for or receive other individual income support benefits during the period (e.g., EI, CRCB, CWLB, etc.)
  • $5,000 minimum earned income requirement in 2020, 2021 or in 12 months prior to date of application

Benefit

  • $500 per week (subject to withholding tax) up to a maximum of 44 weeks per household (do not have to be consecutive) between September 27, 2020 and May 7, 2022

Action Needed


Canada Worker Lockdown Benefit (CWLB)

Eligibility

  • For employed and self-employed people who cannot work due to a COVID-19 lockdown designated for their region
  • Did not apply for or receive other individual income support benefits during the period (e.g., EI, CRCB, CWLB, etc.)
  • $5,000 minimum earned income requirement in 2020, 2021 or in 12 months prior to date of application

Benefit

  • $500 per week (subject to withholding tax) up to a maximum of 44 weeks per household (do not have to be consecutive) between September 27, 2020 and May 7, 2022

Action Needed


Old Age Security (OAS) and Guaranteed Income Supplement (GIS) - Special Payment

Eligibility

Seniors eligible for OAS and GIS

Benefit

  • One-time tax-free payment of $300 for seniors eligible for OAS
  • Additional $200 payment for seniors eligible for GIS

Action Needed

  • No action required

For closed programs, click here

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