Canadian Business Emergency Account (CBEEA)
It is now possible to apply for the additional $20,000.
All companies that initially apply for the $40,000 are automatically eligible.
They should visit their financial institution’s website and follow the instructions for applying for CUEC.
The deadline for the initial $60,000 application or the $20,000 bonus is March 31, 2021.
Reminder of eligibility criteria :
- Q4 2019 payroll between $20,000 and $1.5 million;
Or
- Non-deferrable expenses in 2020 of between $40,000 and $1.5 million.
The loan must be used for current expenses.
Info on the CUEC website here.
Canada Emergency Rental Grant (CERG)
Canadian businesses, non-profits or charities that have experienced a drop in revenue due to the COVID-19 pandemic may be eligible for a subsidy to cover a portion of their commercial rent or real estate expenses, from September 27, 2020, through June 2021. Per 4-week period.
Eligible expenses for tenants (ATTENTION: RENTS MUST BE PAID TO CORPORATIONS WITH NO DEPENDENCY LINK) :
- Rent (based on a written agreement in effect before October 9, 2020);
- Amount to be paid to the lessor or a third party under a net lease (regular payments) such as :
o Property insurance (tenant’s insurance is not eligible);
o Utilities (electricity and others);
o Maintenance of common areas.
- Property taxes;
- Regular payments to the lessor for customary ancillary services.
The income reduction is calculated in exactly the same way as the SSUC. The same subsidy rate will also apply.
Eligible expenses for owners of eligible properties :
- Property taxes;
- Property insurance;
- Interest on commercial mortgages.
CAUTION: THE FOLLOWING PROPERTIES ARE NOT ADMISSIBLE
- Your home, cottage or other residence used by you, members of your family or other persons not dealing at arm’s length with you;
- Any property you own that is used primarily to earn rental income from arm’s-length parties. Corporations owning real estate are therefore not eligible.
It is possible for a management company and an operating company to qualify the management company, which owns the building, by treating the two companies as an affiliated group and taking the consolidated income. In this case, if there is a drop in income, the management company could obtain a subsidy for property taxes, insurance and mortgage interest.
A calculator is available on the government website here.
Requests must be made via the ARC’s My Business Account.
Companies have 180 days following the end of a period to apply.
If you have any questions, please contact Gustave Legault-Brousseau, CPA, CMA, Senior Financial Analyst at Amyot Gélinas, Conseils inc.
Telephone: 450 971-1550, ext. 3472 | 819 326-3400, ext. 3472
