Canada Emergency Rent Subsidy and Lockdown Support up to June 2021

Providing rent assistance to businesses. The rent assistance will be provided as direct transfers to businesses with revenue declines, covering the period from 27 September 2020 to June 2021. The subsidy rate for March 2021 is assumed to also apply for the April to June 2021 periods. Consistent with the magnitude of the Department of Finance’s estimates, it is assumed that for April to June of 2021, revenues will be compared to a reasonably constant baseline unaffected by COVID-19. Rent assistance is calculated as a percentage of eligible expenses which is greater for businesses with greater revenue declines. An additional 25% subsidy is available to businesses that are forced to temporarily close certain locations or have their business activities significantly restricted by a direct mandatory public health order. Eligible expenses include commercial rent, property taxes, property insurance, and interest on commercial mortgages (subject to conditions), less any subleasing revenues. Expenses for each qualifying period would be capped at $75,000 per month per location with an overall cap of $300,000 per month shared among affiliated entities. The program is not cost-shared with provinces or territories.