Extension of the CEWS and Introduction of CERS
Source: Canadian Federation of Independent Business
Date: November 2, 2020
The Canadian Federation of Independent Business (CFIB) welcomes today’s legislation on the extension of the Canada Emergency Wage Subsidy (CEWS) and the new rent relief program, the Canada Emergency Rent Subsidy (CERS), for small businesses impacted by COVID-19.
Canada Emergency Wage Subsidy (CEWS)
It is good news that the wage subsidy will be extended until June 2021 and that plans to reduce the generosity of the subsidy over the fall have been paused. The wage subsidy formula will be based on 80 per cent of a firm’s revenue loss for most businesses over the fall. Those with losses of over 50 per cent can qualify for a top-up of up to an additional 25 per cent.
Canada Emergency Rent Subsidy (CERS)
We are pleased the government has incorporated CFIB’s three main recommendations into the legislation for the new rent program, including ensuring the program is independent of landlord participation, continues until June 2021 and provides support to businesses with revenue losses on a sliding scale. It is also welcome news that commercial mortgage interest for firms that own their own property will be eligible for a subsidy too.