Hard-hit organizations that do not qualify for the Tourism and Hospitality Recovery Program and that have been deeply affected since the outset of the pandemic would qualify for rent and wage support under the Hardest-Hit Business Recovery Program, provided they meet the following two eligibility requirements:
- An average monthly revenue reduction of at least 50 percent over the first 13 qualifying periods for the Canada Emergency Wage Subsidy (12-month revenue decline); and
- A current-month revenue loss of at least 50 percent.
The calculation of the 12-month revenue decline would follow the same rules as under the Tourism and Hospitality Recovery Program, as detailed above. The existing rules would continue to apply for the purposes of calculating the current-month revenue decline.
Subsidy Rate Structure
Under this program, the maximum subsidy rate for the wage and rent subsidies would be set at 50 percent for eligible entities from October 24, 2021, to March 12, 2022 (claim periods 22 to 26).
The wage and rent subsidy rates would continue to be calculated based on current-month revenue losses compared to those of a prior reference period, as under existing rules. However, under this program the subsidy rates would start at 10 percent for eligible hard-hit organizations with a 50 percent current-month revenue decline, increasing thereafter on a straight-line basis to a maximum rate of 50 percent for those with a current-month revenue decline of 75 percent or higher.
The rent and subsidy rates would be reduced by half from March 13 to May 7, 2022 (claim periods 27 and 28).
Lockdown Support would be available at the current fixed rate of 25 percent and pro-rated based on the number of days a particular location was affected by a lockdown, as under existing rules.
Table 2, below, details the proposed wage and rent subsidy rate structure for organizations that qualify for the Hardest-Hit Business Recovery Program from October 24, 2021, until May 7, 2022.
October 24, 2021 – March 12, 2022
March 13 – May 7, 2022
|Current-month revenue decline|
|75% and over||50%||25%|
|50-74%||10% + (revenue decline – 50%) x 1.6|
e.g., 10% + (60% revenue decline – 50%) x 1.6 = 26% subsidy rate
|5% + (revenue decline – 50%) x 0.8|
e.g., 5% + (60% revenue decline – 50%) x 0.8 = 13% subsidy rate
Support in the Event of a Public Health Lockdown
To recognize the challenges that may arise from resurgences of the pandemic, organizations subject to a qualifying public health restriction would be eligible for support at the subsidy rates as calculated in the Tourism and Hospitality Recovery Program (see Table 1), regardless of sector, if they have one or more locations subject to a public health restriction (lasting for at least seven days in the current claim period) that requires them to cease activities that accounted for at least approximately 25 percent of total revenues of the employer during the prior reference period.
Applicants would not need to demonstrate the 12-month revenue decline, only a current-month decline. It would be available to affected organizations, regardless of sector.