Canada: Changes to business support programs (COVID-19)

Proposed changes to programs that have provided support in response to coronavirus

Proposed changes to programs that have provided support in response to coronavirus

Certain businesses and individuals may be affected by proposed changes to programs that have provided support in response to the coronavirus (COVID-19) pandemic.

These proposals (announced 21 October 2021):

  • Extend the “Canada Recovery Hiring Program” (CRHP) until 7 May 2022 (from 20 November 2021)
  • Introduce the “Tourism and Hospitality Recovery Program” and the “Hardest-Hit Business Recovery Program” to provide additional recovery subsidies for certain businesses that can demonstrate significant revenue losses over the course of 12 months of the pandemic, as well as revenue losses in the current month

These new support programs—that also include a new subsidy for organizations subject to further qualifying public health restrictions—will effectively replace the “Canada Emergency Wage Subsidy” (CEWS), “Canada Emergency Rent Subsidy” (CERS) and “Lockdown Support” programs that are set to expire 23 October 2021.

In the announcement, the Department of Finance also proposed a new “Canada Worker Lockdown Benefit” that is to provide $300* a week in income support to eligible workers, among other adjustments.

Read an October 2021 report prepared by the KPMG member firm in Canada

*$ = Canadian dollar

 

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