Applications for the new Canada Emergency Rent Subsidy starts today!

For businesses, non-profits and charities facing uncertainty and economic challenges due to COVID-19, the Government of Canada is now taking applications for the new Canada Emergency Rent Subsidy (CERS). The CERS delivers direct and targeted rent support without the need to claim assistance through landlords and provides:

  • up to 65% of rent for businesses, charities and non-profits impacted by COVID-19.

  • an additional 25% Lockdown Support during a public health lockdown order.

From the canada.ca website:

Canada Emergency Rent Subsidy (CERS)

Canadian businessesnon-profit organizations, or charities who have seen a drop in revenue due to the COVID-19 pandemic may be eligible for a subsidy to cover part of their commercial rent or property expenses, starting on September 27, 2020, until June 2021.

This subsidy will provide payments directly to qualifying renters and property owners, without requiring the participation of landlords.

If you are eligible for the base subsidy, you may also be eligible for lockdown support if your business location is significantly affected by a public health order for a week or more.

Eligibility criteria

To be eligible to receive the rent subsidy, you must meet all four of the following criteria – you:

  1. Meet at least one of these conditions:

    • You had a CRA business number on September 27, 2020

      OR

    • You had a payroll account on March 15, 2020, or another person or partnership made payroll remittances on your behalf

      OR

    • You purchased the business assets of another person or partnership who meets condition 2 above, and have made an election under the special asset acquisition rules
      These special asset acquisition rules are the same for the Canada Emergency Wage Subsidy (CEWS).
      OR

    • You meet other prescribed conditions that might be introduced
      Note: there are no prescribed conditions at this time

    If you don’t have a business number but you qualify under condition b or c, you will need to set one up before you are able to apply for CERS. You do not need a payroll account to apply for CERS.

  2. Are an eligible business, charity, or non-profit (eligible entity)

    Check which types of businesses, charities, or non-profits are eligible

    If your business, charity, or non-profit is related to another eligible entity, you may be considered an “affiliated entity”. This may affect your calculations for the subsidy.

    Learn more about affiliated entities

  3. Experienced a drop in revenue

    Your drop in revenue is calculated by comparing your eligible revenue during the reference period with your eligible revenue from a previous period (baseline revenue).

    There is no minimum revenue drop required to qualify for the subsidy. The rate your revenue has dropped is only used to calculate how much subsidy you receive for these periods.

    Calculate your revenue drop online

    After you have read about the expenses you can claim, you can use the online calculator to find your revenue drop while calculating how much subsidy you may receive.

    OR

    Read about the calculation

    You can read the in-depth details of how the revenue drop is calculated.

    Check what counts as eligible revenue

    A CERS application must be filed no later than 180 days after the end of a claim period.

  4. Have eligible expenses

    To apply for CERS, you must have a qualifying property. Only certain expenses you pay for qualifying properties are eligible for CERS.
    Learn about qualifying properties and which expenses you can claim

The full details of the CERS can be found at: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-rent-subsidy.html

The Best Way to Buy Mortgage Insurance

Before buying insurance from your bank to cover your mortgage, understand the difference between self owned mortgage life insurance and bank owned life insurance. The key differences are ownership, premium, coverage, beneficiaries and portability.

Ownership:

  • Self: You own and control the policy.

  • Bank: The bank owns and controls the policy.

Premium:

  • Self: Your premiums are guaranteed at policy issue and discounts are available based on your health.

  • Bank: Premiums are not guaranteed and there are no discounts available based on your health.

Coverage:

  • Self: The coverage that you apply for remains the same.

  • Bank: The coverage is tied to your mortgage balance therefore it decreases as you pay down your mortgage but the premium stays the same.

Beneficiary:

  • Self: You choose who your beneficiary is and they can choose how they want to use the insurance benefit.

  • Bank: The bank is beneficiary and only pays off your mortgage.

Portability:

  • Self: Your policy stays with you regardless of your lender.

  • Bank: Your policy is tied to your lender and if you change, you may need to reapply for insurance.

We’ve created an infographic about the difference between personally owned life insurance vs. bank owned life insurance.

Talk to us, we can help.