On December 16, 2021, Bill C-2 was enacted and Local Lockdown Program was introduced which provides support to organizations subject to a public health restriction order. On December 22, 2021, Prime Minister Justin Trudeau extended the eligibility for this program. Here are the highlights.
Targeted organizations
Most organizations regardless of their industry (including sole proprietors, companies, NPOs and registered charities).
Eligibility
- For periods 22 – 23 and 26 to 28:
- Current month revenue decline of at least 40%
- Being affected by a qualifying public health restriction order
- For periods 24 and 25 (As announced by Prime Minister on December 22, 2021)
- Current month revenue decline of at least 25%
- Being affected by a qualifying public health restriction order. The program is temporarily expended to business that :
- one or more of its locations is subject to a public health order that has the effect of reducing the entity’s capacity at the location by 50% or more, and
- activities restricted by the public health order accounted for at least 50% of the entity’s total qualifying revenues during the prior reference period.
Support quantum for the Local Lockdown Program
- From October 24, 2021 December 18, 2021 (periods 22 and 23)
- Current month decline > 75%: subsidy rate of 75%
- Current month decline between 40% and 75%: subsidy rate equal to revenue decline
- From December 19, 2021 February 12, 2022 (periods 24 and 25) (As announced by Prime Minister on December 22, 2021)
- Current month decline > 75%: subsidy rate of 75%
- Current month decline between 25% and 75%: subsidy rate equal to revenue decline
Eligible expenses
Eligible remuneration and eligible rent expenses as currently defined for the Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy (CERS). Monthly cap on eligible expenses under the CERS to be increased from $300M to $1,000M.
We Are Here to Help
We offer a Crisis Relief Program to support you throughout the process. Whether you are wondering about your company’s eligibility or would like an estimate of the amount of subsidy to which you may be entitled, do not hesitate to contact a member of our team.
