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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 May 9, 2022, 4:00 p.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

  • 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
  • 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 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:

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
  • 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: LEEFF Factsheet

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

  • Program ended May 7, 2022; applications will be accepted for up to 60 days after each period end
  • Program Details (CRA)

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

  • Program ended May 7, 2022; applications will be accepted for up to 60 days after each period end
  • Program Details (CRA)

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
  • Temporary measures introduced to include workers in regions where provincial or territorial governments have introduced capacity-limiting restrictions of 50% or more; measures will apply from December 19, 2021 to March 12, 2022

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

  • Program ended May 7, 2022; applications will be accepted for up to 60 days after each period end
  • Program Details (CRA) 

For closed programs, click here

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