The Canada-Emergency Wage Subsidy was instrumental in helping qualified Canadian businesses during the pandemic. Even though it was quickly deployed and received constructive criticism, we must admit that it was helpful overall. The Federal government, however, decided to discontinue the program and the last eligible month to apply is October 2021.
However, the most impacted businesses won’t be left behind, especially with the new variant on the horizon. Here is the proposed suite of replacement programs:
- Extend Canada Recovery Hiring Program until May 7, 2022, for eligible employers with current revenue losses above 10% and increase the subsidy rate to 50%. The extension would help businesses continue to hire back workers, increase hours, and create the additional jobs Canada needs for a robust recovery.
- Tourism and Hospitality Recovery Program, which would provide support through wage and rent subsidies to, for example, hotels, tour operators, travel agencies, and restaurants, with a subsidy rate of up to 75%.
- Hardest-Hit Business Recovery Program, which would provide support through wage and rent subsidies to other businesses that have faced deep losses, with a subsidy rate of up to 50%.
- Local Lockdown Program, which would provide businesses that face temporary new local lockdowns up to the maximum amount available through the wage and rent subsidy programs.
Please note that none of the above-listed programs is launched. The Parliament is debating the programs this week and, with a bit of luck, the legislation will pass before Christmas. Please stay tuned!