Area of Law: Coronavirus COVID-19
Answer # 7253
Canada Emergency Rent Subsidy (CERS)Region: Ontario Answer # 7253
What is the Canada Emergency Rent Subsidy (CERS)?
The Canada Emergency Rent Subsidy (CERS) is a federal subsidy that provides direct support of up-to 65 per cent of eligible expenses to qualifying tenants and property owners who have lost revenue due to the COVID-19 pandemic. Organizations can apply directly for the subsidy through the Canada Revenue Agency (CRA) without the assistance of their landlords. Support is available for the period of September 27, 2020 through to June 2021 (applicants can claim the subsidy retroactively for the period that began on September 27 and ended on October 24, 2020).
What types of organizations qualify for the CERS?
The CERS is available to qualifying:
- non-profit organizations, or
What expenses does the CERS cover?
Eligible expenses include:
- commercial rent,
- property taxes (including school taxes and municipal taxes),
- property insurance, and
- interest on commercial mortgages (subject to limits) for a qualifying property, less any subleasing revenues.
Sales tax on these costs, such as GST/HST, is not an eligible expense.
What are the eligibility requirements?
The following is a brief explanation of what is required to be eligible for the subsidy. For a more detailed explanation of all qualifications, visit the Canada Emergency Rent Subsidy (CERS) website.
To qualify, businesses must meet all four (4) of the following criteria:
1. Meet at least one of the following conditions:
- have a CRA business number as of September 27, 2020
- had a payroll account on March 15, 2020, or another person or partnership made payroll remittances on your behalf
- have 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
2. Are an eligible business, charity, or non-profit
3. Experience a drop in revenue
4. Have eligible expenses
Qualifying businesses may also may also be eligible for additional lockdown support of 25 per cent if the business location is shut down or business activities are significantly affected by a public health order for a week or more.
For a full explanation of CERS, including periods you can apply for, the types of expenses you can claim, and how to apply, visit canada.ca
For information on other available supports for businesses and individuals, visit the Government of Canada Economic Response Plan website.
Provincial relief programs for businesses: There may also be financial relief programs and incentives for businesses available from provincial governments. For more info, visit our related links and resources for what is available where you live.
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