New and Extended COVID Recovery Benefits Announced

Bill C2 received Royal Assent in Parliament, passing legislation for the recently proposed extensions to individual and business COVID-19 support programs.
We provide a summary of these programs here and will update as more information comes available.

Canada Worker Lockdown Benefit

The Canada Worker Lockdown Benefit (CWLB) gives temporary income support to people who cannot work due to a COVID-19 lockdown.

PROGRAM ELIGIBILITY AND DETAILS:

• Eligibility: Employees or self-employed people who cannot work due to a COVID-19 related regional public health lockdown
• Program Dates: October 24, 2021, to May 7, 2022
• Benefit Amount: $300 per week ($270 after taxes withheld)
• How to Apply: Currently accepting applications through CRA My Account.

Tourism and Hospitality Recovery Program

The Tourism and Hospitality Recovery Program (THRP), provides wage and rent support to businesses operating in tourism and hospitality (hotels, tour operators, travel agencies, and restaurants).

PROGRAM ELIGIBILITY AND DETAILS:

• Eligibility:
  • If more than 50% of your revenue comes from one or more of tourism, hospitality, arts, entertainment, or recreation and
  • You have a 12-month average revenue drop from March 2020 to February 2021 of at least 40% and
  • You have a claim period revenue drop of at least 40% (use the CRA’s online calculator to determine eligibility)
• Program Dates: October 24, 2021, to May 7, 2022
• Benefit Amount: up to 75% of wage and/or rent
• How to Apply:
  • For Wage Subsidies – online through the CRA’s web portal
  • For Rent Subsidies – online through the CRA’s web portal

Local Lockdown Program

The Local Lockdown Program offers businesses, charities, and non-profits wage and rent support if they are affected by a qualifying public health restriction. The program is administered through the Tourism and Hospitality Recovery Program (THRP).

IMPORTANT: You do not have to be in the tourism, hospitality, arts, entertainment, or recreation sectors to be eligible for this support

PROGRAM ELIGIBILITY AND DETAILS:

• Eligibility:
  • Your business was affected by a qualifying public health restriction and
  • You have a claim period revenue drop of at least 40% (use the CRA’s online calculator to determine eligibility)
  • Note: you do NOT need to calculate a 12-month average revenue drop under this eligibility option
• Program Dates: October 24, 2021, to May 7, 2022
• Benefit Amount: up to 75% of wage and/or rent
• How to Apply:
  • For Wage Subsidies – online through the CRA’s web portal
  • For Rent Subsidies – online through the CRA’s web portal

Hardest-Hit Business Recovery Program

The Hardest-Hit Business Recovery Program (HHBRP) provides support to other businesses that have faced significant losses since the start of the pandemic, with wage and rent subsidies of up to 50 per cent.

PROGRAM ELIGIBILITY AND DETAILS:

• Eligibility:
  • You must demonstrate you have experienced a 12-month average revenue drop from March 2020 to February 2021 of at least 50%
  • You have a claim period revenue drop of at least 50%
• Program Dates: October 24, 2021, to May 7, 2022
• Benefit Amount: up to 50% of wage and/or rent
• How to Apply:
  • For Wage Subsidies – online through the CRA’s web portal
  • For Rent Subsidies – online through the CRA’s web portal

Canada Recovery Hiring Program Extension

The Canada Recovery Hiring Program (CRHP) is designed to help businesses hire back employees, increase hours and create new jobs. The program dates have been extended to May 7, 2022, for eligible employers with current revenue losses above 10 per cent and increasing the subsidy rate to 50 per cent.

For details on this program, read our blog on the CRHP extension.

Canada Recovery Caregiving and Canada Recovery Sickness Benefit Extensions

The Canada Recovery Caregiving Benefit (CRCB) and the Canada Recovery Sickness Benefit (CRSB) programs have been extended:

• Program dates have been extended to May 7, 2022
• Maximum duration of benefits extended by two weeks:
  • CRCB from 42 to 46 weeks
  • CRSB from 4 to 6 weeks
• Eligible individuals will be able to apply retroactively back to the week of November 21, 2021

For details on this program, read our blog on the CRCB and the CRSB.

Contact FBC

Have questions about this or other COVID-19 programs for Canadian businesses? Unlimited consultation related to tax matters is a key benefit of FBC Membership. We’re offering a free consult where we get to know your business and determine next steps on saving you time and money. Request your consultation online.