The federal government recently announced changes to both business and worker COVID-19 support programs. Previous broad-based support programs such as the wage subsidy, rent subsidy and lockdown support ended on October 23, 2021 and instead the government intends to provide more targeted measures moving forward.
Two new targeted support programs were introduced for businesses still facing significant pandemic-related challenges:
- Tourism and Hospitality Recovery Program, which provides support through the wage and rent subsidy programs, to hotels, tour operators, travel agencies, and restaurants, with a subsidy rate of up to 75 per cent.
- Hardest-Hit Business Recovery Program, which provides support through the wage and rent subsidy programs, would support other businesses that have faced deep losses, with a subsidy rate of up to 50 per cent.
Applicants for these programs will use a new “two-key” eligibility system whereby they will need to demonstrate significant revenue losses over the course of 12 months of the pandemic, as well as revenue losses in the current month.
Businesses that face temporary new local lockdowns will be eligible for up to the maximum amount of the wage and rent subsidy programs, during the local lockdown, regardless of losses over the course of the pandemic.
These programs will be available until May 7, 2022, with the proposed subsidy rates available through to March 13, 2022. From March 13, 2022, to May 7, 2022, the subsidy rates will decrease by half.
Other Changes
The government is also extending the Canada Recovery Hiring Program until May 7, 2022, for eligible employers with current revenue losses above 10 per cent and increase the subsidy rate to 50 per cent.
Worker Support Programs
The government also proposed the following changes to worker support programs:
- Extend the Canada Recovery Caregiving Benefit and the Canada Recovery Sickness Benefit until May 7, 2022 and increase the maximum duration of benefits by 2 weeks.
- Introduce the Canada Worker Lockdown Benefit which would provide $300 a week in income support to eligible workers should they be unable to work due to a local lockdown anytime between October 24, 2021 and May 7, 2022.
We will provide more information as it becomes available. If you have any questions about this or other government support programs, please reach out to the Stonehenge Accounting team.