What is Canada Emergency Rent Subsidy (CERS) and How to apply for it?
Canada Emergency Rent Subsidy (CERS) was introduced to help the businesses that suffer due to COVID-19 lockdowns and social distancing measures. This subsidy will be provided to tenants/lessees directly comparing to earlier rent subsidies which supposed to be applied by the lessors/landlords.
CERS is eligible for businesses, individuals, registered charity organizations and non-profit organizations who could get reimbursement of up to 65% of eligible rent and other rent-related expenses.
Eligible expenses include:
- Commercial rent (rental property)
- Property and similar taxes (rental or owned property)
- Insurance (owned property)
- Interest on the commercial mortgage (owned property)
Moreover, an additional 25% lockdown support is available if the business was forced to temporarily close or significantly restrict activities by public health order.
The subsidy rate is calculated using the following formula:
Your revenue drop
Revenue drop of 70% or more
Revenue drop of 50 to 70%
Revenue drop of less than 50%
How to calculate your rate
The maximum subsidy rate of 65%
(Your revenue drop – 50%) x 1.25 + 40%
0.8 x your revenue drop
CERS top-up (lockdown support) rate is 25% on lockdown, calculated as:
- 25% (fixed top-up rate)
- X days the location was locked due to the COVID-19 pandemic
- ÷ 28 (the days in the CERS period)
- = Your top-up (lockdown support) rate
Due to the above-complicated formula, the Government provided an online calculator to calculate the subsidy amount.
Revenue calculation is aligned with the Canada Emergency Wage Subsidy (CEWS) program, allows to choose a comparison period either:
- Average revenue of January and February 2020
- The applicable month of the previous year
Companies can start applying for the subsidy for a four-week period, retroactively from September 27, 2020, up to June 2021.
To apply CERS log in to My Business Account or Represent a client, create a CERS (ZA) number. You must apply for each claim period separately, no longer than 180 days after the claim period.