On December 16 2021, Bill C-2 was enacted. This bill introduces two programs to support Hospitality & Tourism and help for hard-hit industries. It also extends the Canada Recovery Hiring Program. Here are the highlights.

Targeted organizations

Organizations in selected sectors of the hospitality & tourism industry such as but no limited to hotels, restaurants, bar, tour operators, museums and trade show organizers.

Eligibility  

• Average monthly revenue reduction of at least 40% over March 2020 to February 2021
• Current month revenue reduction of at least 40% over comparable period

Support quantum  

• From October 24, 2021 to March 12, 2022 (periods 22 to 26)
  • Current month decline > 75%: subsidy rate of 75%
  • Current month decline between 40% and 75%: subsidy rate equal to revenue decline

• From March 13, 2022 to May 7, 2022 (periods 27 to 28)
  • Current month decline > 75%: subsidy rate of 37.5%
  • Current month decline between 40% and 75%: subsidy rate equal to 50% of 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

Targeted organizations

This program provides help for hard-hit industries that do not qualify under the THRP 

Eligibility 

• Average monthly revenue reduction of at least 50% over March 2020 to February 2021
• Current month revenue reduction of at least 50% over comparable period

Support quantum  

• From October 24, 2021 to March 12, 2022 (periods 22 to 26)
  • Current month decline > 75%: subsidy rate of 50%
  • Current month decline between 50% and 75%: subsidy rate of 10% + (revenue decline – 50%) X 1.6
• From March 13, 2022 to May 7, 2022 periods 27 to 28)
  • Current month decline > 75%: subsidy rate of 25%
  • Current month decline between 50% and 75%: subsidy rate of 5% + (revenue decline – 50%) X 0.8

Eligible expenses

Eligible remuneration and eligible rent expenses as currently defied for the CEWS and CERS. Monthly cap on eligible expenses under the CERS to be increased from $300M to $1,000M.

• Extension to May 7, 2022 under the current rules
• Subsidy rate for the period ending November 20, 2021 to May 7, 2022 would be increased to 50%

Note that the Federal Government introduced legislation with the authority to further extend through July 2, 2022 if required.

In addition, as at December 21, 2021, it is possible to file claims for period 22 of the THRP, HHBRP and CRHP.

We offer a Crisis Relief Program to support you throughout the process. Whether you are wondering about your company’s eligibility to help for hard-hit industries 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.