What is CERS?
- A subsidy available to eligible Canadian businesses, non-profit organizations or charities to help cover commercial rent or property expenses.
Who is eligible?
- Qualifying renters – renting land or buildings from an arm’s length party that you use in the course of your regular business or organization activities.
- Property owners – use of your land or buildings in the course of your regular business or organization activities.
- If a property owner generates rent from non-arm’s length tenants, this rent is not eligible to be claimed under the program for the tenants. The owner may claim CERS if they use that property primarily for purposes other than earning arm’s length rent and meet all other conditions.
- Based on eligibility criteria similar to CEWS – requires a revenue decline.
What expenses are covered with the subsidy?
- Qualifying renters – arm’s length commercial rent which could include additional operating expenses (ie utilities, insurance, property taxes) if the tenant is required to pay these expenses under a net lease agreement.
- Property owners – mortgage interest, building insurance, property taxes.
- CERS claim is up to 65% of eligible expenses until the end of the sixth period (March 13, 2021). On March 3, 2021, the Government announced the 65% maximum subsidy rate would extend to June 5, 2021.
- Lockdown support – if business or organization was subject to a lockdown and had to shut their doors or significantly restrict their activities under a public health order, may be eligible for additional 25%
When is the deadline to apply?
- Eligible periods begin September 27, 2020, to June 5, 2021. Same periods as CEWS – first period covering September 27, 2020, to October 24, 2020, is due April 22, 2021.
- Same periods as the CEWS with the deadline for filing claims for each period being 180 days after the end of the qualifying period.
- CERS will continue to June 2021 as currently announced.
If you think you may be eligible to receive this subsidy, please reach out. We have not included in-depth details of this program which may impact your eligibility and amount of subsidy. Follow the link to the CRA site for more information.
Learn more details: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-rent-subsidy.html