COVID-19: FINANCIAL IMPACT REPORT

Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy (CERS) announced extension

The Federal Government announced that the current Canadian Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS) programs are extended for one additional period to October 23, 2021, from the previously announced ending date of September 25, 2021. In addition, the planned reduction in support has been removed and the eligible subsidy rate support will be increased from the previously announced 20% subsidy to 40% subsidy for periods 20 and 21 (see period dates below).

The announced changes the CEWS subsidy include:

  • The maximum base wage subsidy rate for active employees would remain at 40% in period 18 to 21, and the maximum top-up wage subsidy rate for employers with greater than a 50% revenue reduction would remain at 35 per cent.

The summary of CEWS periods 19 to 21 is as follows:

CEWS Base and Top-up rate structure Periods 19 – 21

CERS Base Rate Structure Periods 12 to 14 

More information on the announcement can be found at:
https://www.canada.ca/en/department-finance/news/2021/07/extending-business-support-measures-through-the-pandemic.html

Tourism and Hospitality Support Program

The Provincial Government announced details of the new Tourism and Hospitality Support Program which is targeted at those businesses involved in the tourism and hospitality sector.  Eligible applicants will be determined based on the following categories: Accommodations, Tours, Attractions, Food and Beverage, Outfitters, Transportation, Retail Operations in the Tourism Industry and Events.  The application will be available to complete online between July 13, 2021 to September 30, 2021. 

Applicant Eligibility

  • Tourism and Hospitality operators engaged in commercial operations that have experienced a loss of sales in 2020 over 2019 and have a reasonable plan to continue operations in 2021 and/or 2022.
  • Eligible applicants will be eligible for a minimum contribution of $2,500 or a contribution calculated at five per cent of total loss of sales in 2020 over 2019, up to a maximum of $50,000, per enterprise.
  • Corporations and sole proprietors/partnerships that are Newfoundland and Labrador owned and operated.
  • Municipalities are not eligible.
  • Applicants must have been in operation for at least one year on March 16, 2020 with the exception of new start-ups. New start-ups that were registered in 2020 and preparing to open for 2020 and/or 2021 season may be eligible but must provide additional information (i.e. summary of expenses) for assessment purposes.
  • If required, applicants shall be incorporated in Newfoundland and Labrador and have its primary place of operations in Newfoundland and Labrador.
  • Prior to March 16, 2020, applicants were in a financial position to operate in 2020 and are able to provide a reasonable plan to continue operations in 2021 and/or 2022.
  • Applicants are eligible to receive one non-repayable contribution per enterprise.
  • Applications will be processed on a first come, first served basis until September 30, 2021.

More information on the announcement can be found at: https://www.gov.nl.ca/releases/2021/exec/0708n03/

The application can be found online at:
http://apps.gov.nl.ca/tourism_emerg_grants/Form/Form/Edit/?template_id=3146550


Please note that due to the rate at which the current COVID-19 situation is changing, and the response by government to feedback on its initiatives, the information contained in this update is accurate as of the release date indicated above.

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