Subsidy Updates

Subsidies Available Starting Period 22:

The following are the most recent and updated details regarding the wage & rent subsidies and their respective deadlines.

Canada Recovery Hiring Program (CRHP)

• A wage subsidy.
• This has been available since period 17 but has since been extended.
• Continues to require a 10% revenue decline in each period and compares incremental wages in the period to a base period.
• The base period remains to be March 14, 2021, to April 10, 2021.
• The subsidy takes a percentage of the incremental wages.
• The weekly wages are subject to a max of $1,129 per week per employee.
• Increases in one employees’ wage get offset by decreases to other employees’ wages, therefore, wages overall must increase compared to the base period.

Tourism & Hospitality Recovery Program (THRP)

• Wage and rent subsidy.
• There are two ways to qualify:
  1. More than 50% of eligible revenues come from one or more of the tourism, hospitality, arts, entertainment, or recreation activities, and have a 12-month average revenue drop from March 2020 to February 2021 of at least 40%, and have a current claim period revenue drop of at least 40%, or
  2. Local Lockdown Program (LLP) – You do not need to be in the tourism and hospitality sector, and you do not need the 12-month average revenue drop. You do need to be affected by a qualifying public health restriction and have a claim period revenue drop of at least 40%
     1. For a list of activities that qualify, see this link on CRA Tourism, hospitality, arts, entertainment, and recreation activities that qualify for the THRP.
     2. For a qualifying public health restriction, the activities that were stopped due to the public health restriction accounted for at least 25% of total eligible revenue.
     3. For periods 24 and 25, the government is proposing to temporarily expand the LLP so that a business can qualify if a public health order has reduced an entity’s capacity by 50% or more and the restricted activities account for at least 50% of the entity’s total qualifying revenues.
     4. They also intend to lower the current month’s revenue loss threshold from 40% to 25%.

Hardest Hit Business Recovery Program (HHBRP)

• A wage and rent subsidy.
• An organization can qualify regardless of sector.
• You must have a 12-month average revenue drop from March 2020 to February 2021 of at least 50%, and have a current claim period revenue drop of at least 50%.

Period & Subsidy Deadlines

Prepared by: Julia Komaniecki, CPA