Relief for tourism, hospitality and others hardest hit by the COVID-19 pandemic | RENX

Federal legislation that came into effect on December 17, 2021 is intended to provide additional support to the tourism and hospitality sector, as well as other businesses that have been hard hit by the COVID-19 pandemic.

Bill C-2, legislation to provide additional support in response to COVID-19, includes the Tourism and Hospitality Recovery Program (THRP) and the Hardest-Hit Business Recovery Program (HHBRP), which are two new rental support programs. The applicable application periods for the THRP and HHBRP began on October 24, 2021, the day after the previous Canada Emergency Rent Subsidy (CERS) program expired, and have many of the same terms and conditions. eligibility as the ESRB.

Who is eligible for relief: Eligible applicants must be taxable corporations or trusts, individuals (such as sole proprietorships), registered charities or non-profit organizations. Public institutions, including but not limited to municipalities and local governments, Crown corporations, public universities, colleges, schools, and hospitals are not eligible. The person/organization must also meet at least one of the following conditions:

  1. she had a CRA business number on September 27, 2020;
  2. she had a payroll account on March 15, 2020 or another person or partnership made payroll remittances on her behalf;
  3. it has purchased the business property of another person or partnership who satisfies condition (a) or (b) above or who has elected under the special property acquisition rules; Where
  4. it meets other prescribed conditions that may be introduced.

Requirements for each grant:

Eligible candidates can qualify for the THRP in two ways:

  1. If the applicant is in the tourism and hospitality sector and meets the following three conditions:
    1. more than 50% of the organization’s eligible revenue is derived from one or more of the tourism, hospitality, arts, entertainment, or recreation activities supported by THRP;
    2. the organization has an average 12-month revenue decline from March 2020 to February 2021 of 40% or more; and
    3. the organization has a revenue decline of at least 40% during the claim period; Where
  2. If the applicant is affected by an eligible public health restriction, regardless of the sector, and meets the following two conditions:
    1. the organization has been affected by a qualifying public health restriction; and
    2. the organization has a revenue decline of at least 40%.

A qualifying public health restriction is a prescription that meets certain conditions, including:

  1. the public health restriction required the applicant or their non-arm’s length tenant to cease some or all regular activities at the qualifying property for at least 7 consecutive days; and
  2. the discontinued activities represent at least 25% of the qualified income earned during the preceding reference period from or in connection with the qualified property affected.

Which properties are eligible for relief: Only commercial properties are eligible for relief, meaning any “real or immovable property”, including buildings or land, in Canada that a business or organization owns or leases and uses in the framework of its ordinary activities. This excludes homes, cottages or other residences, as well as any properties that are primarily used to earn rental income from arm’s length parties or properties primarily used to earn rental income directly or indirectly from a party with which you have a non-arm’s length relationship and which are primarily used by that party. part to earn rental income.

Relief : What property expenses are eligible: The THRP and HHBRP each have a maximum eligible expense of $75,000 per business location. The maximum total for all locations is $1,000,000 for both programs. There are other eligibility criteria for expenses, including:

– expenses can only include amounts paid or payable to an arm’s length party;

– the expenses must relate to the claim period; and

– the expense must be paid or payable under a written agreement entered into before October 9, 2020, or a renewal under substantially similar conditions or an assignment of such an agreement.

The THRP rental assistance rate is available:

– up to 75% through THRP based on claim period revenue decline for claim periods 22 through 26, and

– up to 37.5% for claim periods 27-28.

The HHBRP subsidy rate is up to a maximum of 50% for claim periods 22-26 and 25% for claim periods 27-28.

Containment Support Supplement: If a person/organization must close or cease certain activities at one or more of their sites under a public health restriction for a week or more, they may be eligible for a Containment Support Supplement . This support provides an amount of up to 25% of eligible expenses per affected location for the days of the claim period when the restriction was in place.

Eligible landlords with non-arm’s length tenants can access the Lockdown Support Supplement for THRP and HHBRP. This requires that all of the following conditions be met:

  1. the qualified property is used by the lessee in the course of its usual activities;
  2. the property is subject to confinement;
  3. a health restriction obliges the tenant to close its doors or to significantly restrict its activities; and
  4. the owner must meet all other applicable conditions required for the Containment Support Supplement.

The calculation of the containment support supplement for an eligible landlord with non-arm’s length tenants is based on its own eligible expenses and not on the commercial rent paid or payable by its tenant(s).

What application periods can individuals/organizations apply for?

Periods 22-26: October 24, 2021 – March 12, 2022

Period 22: October 24-November 20, 2021

Period 23: November 21-December 18, 2021

Period 24: December 19, 2021-January 15, 2022

Period 25: January 16-February 12, 2022

Period 26: February 13-March 12, 2022

Periods 27-28: March 13-May 7, 2022

Period 27: March 23-April 9, 2022

Period 28: April 10, 2022-May 7, 2022

How to register: A separate claim must be submitted for each claim period and must be filed no later than 180 days after the end of the claim period. If applicants have never applied for housing assistance before, an online account must be created. Application periods 25 and over are not yet open for application.

Other support from Bill 2 – An Act to provide additional support in response to COVID-19:

The Canada Workers Lockdown Benefit, which provides income support of $300 per week to eligible workers who are directly affected by a COVID-19 related health lockdown in their area until May 7, 2022.

The Local Confinement Program, which provides businesses facing new temporary local confinements up to the maximum amount available through the wage and rent subsidy programs.

Extending the Canada Recovery Caregiver Benefit and the Canada Recovery Sickness Benefit until May 7, 2022, and increasing the maximum duration of benefits by 2 weeks. This extends the care allowance from 42 to 44 weeks and the sickness allowance from 4 to 6 weeks. Individuals will be able to apply retroactively to the week of November 21, 2021. Applications for Term 61 will open on December 20, 2021.

Extending Canada’s Recovery Hiring Program until May 7, 2022 for eligible employers with current revenue losses greater than 10% and increasing the subsidy rate to 50%. This extension will help businesses continue to rehire workers, increase hours and create the additional jobs Canada needs for a strong recovery.

Disclaimer: This article is provided for general informational purposes only and is not intended to be relied upon for legal advice. Consult an attorney for your unique situation.

*If there is a general real estate or leasing related question that you would like to see addressed in a future article in “The Legal Corner”, please contact me directly via email at [email protected] with your proposal. Not all requests can be met.

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