Community Support & Recovery Plan

Supporting our Business Community

On May 5, City Council approved a Community Support and Recovery Plan (CSRP), that includes immediate relief for taxpayers and a recovery fund to address the pandemic’s short- and long-term financial impact on all sectors of the community. It includes:

• Deferring 2020 utility and property tax deadlines for all property types to Sept. 30;

• Designating $5-million to implement a response plan with both short- and long-term support for businesses, residents and non-profits;

• Seeking federal and provincial stimulus funding for City capital projects to promote economic recovery; and

• Additional measures to be included

Supporting our Business Community

On May 5, City Council approved a Community Support and Recovery Plan (CSRP), that includes immediate relief for taxpayers and a recovery fund to address the pandemic’s short- and long-term financial impact on all sectors of the community. It includes:

• Deferring 2020 utility and property tax deadlines for all property types to Sept. 30;

• Designating $5-million to implement a response plan with both short- and long-term support for businesses, residents and non-profits;

• Seeking federal and provincial stimulus funding for City capital projects to promote economic recovery; and

• Additional measures to be included in the 2021 budget.

City staff are now moving forward with refining the CSRP and a host of ideas are being considered, including targeted grants, reduced or waived City fees, technology investments and marketing to support local businesses. Staff plan to present specific CSRP recommendations to Council in late May.

Business Supports

We have more than 7,000 businesses in Coquitlam, ranging from home-based operations to large enterprises with hundreds of employees. The City recognizes that this is a very challenging time for many of our local businesses as they face the impacts and the uncertainty of the current public health crisis.

From the start of the COVID-19 pandemic, Coquitlam’s Economic Development team has been reaching out to local business stakeholders and researching how best to support our community’s business sector. Over the coming weeks and months, City staff will continue to work with other levels of government, as well as business support organizations and other industry stakeholders, to help identify and inform our next steps.

This page has been developed to provide ongoing updates and information resources to Coquitlam’s business community. This will include opportunities for input, links to government and industry assistance programs, and a Q&A forum to get answers to your questions.

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  • Coquitlam Relaxes Sign Rules to Support Businesses - City of Coquitlam

    27 Nov 2020

    Nov. 27, 2020

    Coquitlam has temporarily relaxed its sign regulations to help businesses more easily publicize key information related to the pandemic.

    Monday night, Council approved temporary exemptions to the sign bylaw that will waive fees and other requirements for temporary signs that convey safety, hours and other information to customers.

    Part of the City’s COVID-19 Community Support and Recovery Plan (CSRP), the exemptions are in effect until Dec. 31, 2021 and apply to licensed businesses (excluding home occupation businesses) for temporary sandwich board signs, window signs and time-limited signs (e.g., banner signs).

    Helping Businesses Meet New Challenges

    Many Coquitlam businesses have faced temporary closures and changes to their hours and services – often with little notice – as they continue to operate during the pandemic. The ongoing changes to health orders make it challenging to conform with the City’s sign bylaw, which includes an approval process to ensure attractive and appropriate sign use.

    The temporary exemptions will mean businesses do not need to apply for a sign permit, pay fees or adhere to limits on the sign area (excluding sandwich board signs), time period and number of temporary signs that provide pandemic-related information such as:

    • Hours of operation, closures and reopenings;
    • Directional information to ensure physical distancing;
    • Best practices to limit the spread of COVID-19, such as use of masks;
    • Changes of services or inventory; and
    • Phone numbers and website addresses.

    The temporary signs may not be used to advertise products, services or pricing, and businesses are expected to keep the signs organized, maintained in a professional manner and installed safely.

    Sandwich boards must remain on the business property and are not permitted on sidewalks or other public rights-of-way unless approved through a formal sign application.

    The City will revisit these temporary exemptions at the end of 2021.

    For more details, visit www.letstalkcoquitlam.ca/business or www.coquitlam.ca/development, or contact the Planning & Development customer service centre at 604-927-3430 or planninganddevelopment@coquitlam.ca.

  • Canada Revenue Agency opens applications for the Canada Emergency Rent Subsidy - Government of Canada

    27 Nov 2020

    Nov. 23, 2020

    Canada’s COVID-19 Economic Response Plan has helped to support millions of Canadian workers and businesses throughout the pandemic. Through the Canada Emergency Rent Subsidy (CERS), the Government is providing targeted, direct relief to businesses, non-profits, and charities that continue to face the economic impacts of the COVID-19 pandemic.

    Today, the Honourable Diane Lebouthillier, Minister of National Revenue, opened the CERS to receive applications from qualifying organizations. These organizations can now apply directly for the subsidy for the period from September 27 to October 24, 2020 through the Canada Revenue Agency (CRA) My Business Account, or Represent a Client portals. Applications for the second CERS period (October 25 to November 21, 2020) will open on November 30.

    In response to concerns raised by stakeholders about the program, the Government is proposing to amend the CERS in order to allow applicants to include eligible expenses in their CERS application before the expense has been paid. This means that organizations can include rent and other eligible amounts already paid in respect of a claim period as well as amounts that are payable for the claim period when submitting their CERS applications. Amounts that are not paid at the time of the application will have to be paid no later than 60 days after payment of the subsidy.

    The CRA has launched a CERS online calculator and application form that are designed almost identically to those of the Canada Emergency Wage Subsidy (CEWS). The calculator guides applicants through a step-by-step process that allows them to determine the subsidy amount they can claim, based on the information they enter. The CERS web pages include detailed information about eligibility requirements, how payment periods are structured, and how the subsidy is calculated.

    The CRA will collect applications over the coming days and, on November 30, process applications received to date. Qualifying organizations whose claims successfully clear the CRA’s automated verification system and that are registered for direct deposit should expect to begin receiving payments starting on December 4. In cases where the CRA does not have enough information on file to process a claim, we will ask organizations to provide us with additional information so that we can verify their eligibility before we process their application.

    The CRA recognizes and appreciates the important role that stakeholders are playing in providing feedback on how the CERS program will operate. We look forward to continuing to work closely with businesses, non-profits, and charities and their representative organizations as we deliver the CERS program.

  • B.C. Small and Medium Sized Business Recovery Grant - Small Business B.C.

    16 Nov 2020

    Visit the Small Business B.C. Webpage Here.

    Legal and Accounting Professional Services to Support B.C.’s Small and Medium Sized Business Recovery Grant Program

    The B.C. Small and Medium Sized Business Recovery Grant Program is intended to provide financial assistance to businesses that have been drastically impacted by COVID-19. Eligible businesses will receive grants of between $10,000 to $30,000 (with an additional top-up of up to $10,000 for eligible tourism-related businesses) to support the costs of implementing a recovery plan that outlines a realistic approach to keeping the business afloat until sales and revenues are able to return to more-normal levels.

    By supporting those businesses that establish a realistic plan to remain viable through what may be a prolonged period of reduced consumer activity, the program is intended to help British Columbia businesses stabilize and adapt their operations, sustain their employees and continue to support local purchases of goods and services in communities throughout the province.

    Small Business BC is a delivery partner that will be focused on Stage 2 of the process – retaining a roster of professional service providers, matching eligible businesses with service providers, and ensuring recovery plans are completed in a timely manner.

    Eligible businesses will be provided with professional services valued at up to $2,000 per business (including taxes) to help assess their situation and develop a recovery plan that will describe a realistic path to remaining solvent until COVID-19 is behind us.

    Businesses Helping Businesses

    The B.C. Small and Medium Sized Business Recovery Grant program is seeking interested parties such as accountants, financial planners, bookkeepers and lawyers to assess the solvency of businesses and help develop recovery plans (template to be provided). Small Business BC matches the business to the service provider who invoices SBBC for reimbursement for services, up to a maximum of $2,000 (including taxes) per grant recipient at their normal hourly rate of up to $250/hour.

    Service providers must participate in a 45 minute webinar to ensure they are fully briefed on the objectives of the program, its timelines and the importance of a consistent approach.

    Once businesses are verified as being eligible for the program, they will be matched with professional service providers through Small Business BC, wherever possible based on location, sector and spoken language needs. Businesses will receive a detailed summary of next steps and requirements of their participation. Once assigned to a business, the role of the professional service provider will be to review the business’s financial statements and assist them in evaluating and developing a recovery plan which will become the foundation of their grant application. More detail will be provided at the webinar.

    Upon completion of the recovery plan – which should take no longer than two weeks to prepare from when the professional advisor is referred, the business will upload the recovery plan to their online application and the system will notify the Ministry of Jobs, Economic Development and Competitiveness (JEDC) that the plan is ready for review.

    How to Apply

    If you are one of the professions listed above, can support clients within a two week window, and would like to lend your skills, knowledge and expertise to assisting companies develop their economic recovery plans, and play a part in rebuilding a critical part of B.C’s economy, please submit your interest to Small Business BC by November 18th at 11:59pm PDT. Late applications will not be considered – no exception.

  • Government of Canada provides targeted support for business to help maintain over 11,000 jobs in British Columbia - Government of Canada

    13 Nov 2020

    Nov. 13, 2020

    From the outset, the Government of Canada has taken action to support businesses affected by the COVID-19 pandemic, and to protect their contributions to the Canadian economy. One measure of support is the $1.5 billion Regional Relief and Recovery Fund (RRRF), delivered by Canada’s Regional Development Agencies and intended for small- and medium-sized enterprises that have been unable to access other federal relief measures, putting jobs and livelihoods at risk.

    The pandemic has created new barriers and challenges for BC businesses, including access to capital, and there has been strong demand for RRRF funding. The traditional broad range of supports available to entrepreneurs through the business ecosystem, such as industry associations, are also subject to their own pandemic-related challenges. These not-for-profit organizations, best placed to identify and nurture locally relevant initiatives that meet regional needs, are struggling at the time that they are needed most.

    Support for the business ecosystem

    Today, the Honourable Joyce Murray, Minister of Digital Government and Member of Parliament for Vancouver Quadra, announced over $1.7 million for business ecosystem support in BC. This RRRF funding for seven organizations will ultimately support enterprises in all stages of the business lifecycle, from nurturing start-ups to the ongoing development of mature firms. Many of the programs being funded are already under way, bringing immediate support for local companies, and making a difference for families and communities across the West.

    Today’s funding from Western Economic Diversification Canada (WD) is expected to help maintain more than 11,000 jobs in businesses across the province, and is part of the government’s commitment to create one million jobs across Canada.

    For example, the Community Futures Development Association of BC will receive $1 million to create economic support programs for small and medium-sized enterprises in communities impacted by mill closures. Recent mill closures and curtailments – exacerbated by the COVID-19 pandemic – have had a devastating impact on businesses in remote, resource dependent communities. Funding is expected to provide 190 small businesses with training, mentorship and operational costs, helping to maintain 760 jobs over the next six months.

    This RRRF funding complements existing programs offered by WD, such as the WES Ecosystem Fund and the Regional Innovation Ecosystems (RIE) program. RRRF will help industry sectors retain the knowledge and skills of valuable employees, and maintain the capital flows and supply chains needed to build back better in an economic recovery.

  • Canada Emergency Rent Subsidy - Government of Canada

    05 Nov 2020

    Nov. 5, 2020

    On October 9, the government proposed the new Canada Emergency Rent Subsidy to provide direct relief to businesses, non-profits, and charities that continue to be economically impacted by the COVID-19 pandemic. The new rent subsidy would be available retroactive to September 27, 2020, until June 2021.

    The government is providing the proposed details for the first 12 weeks of the program, until December 19, 2020. The proposed program would, in many ways, mirror the successful Canada Emergency Wage Subsidy, providing a simple, easy-to-understand program for affected qualifying organizations. The new rent subsidy would provide benefits directly to qualifying renters and property owners, without requiring the participation of landlords.

    This backgrounder provides information for organizations that have experienced a revenue decline and may qualify for the Canada Emergency Rent Subsidy. If your organization has been subject to a public health order issued under the laws of Canada, a province or territory (including orders made by a municipality or regional health authority under one of those laws), you may be eligible for additional resources under the new Lockdown Support.

    Rent Subsidy for Organizations Impacted by the Crisis

    With the introduction of the new rent subsidy, qualifying organizations that have suffered a revenue drop would be eligible for a subsidy on eligible expenses. As shown in Table 1 and Figure 1, below, the maximum base rate subsidy would be 65 per cent, and available to organizations with a revenue drop of 70 per cent or more. The base rate would then decline to a rate of 40 per cent for organizations with a revenue drop of 50 per cent, and then would gradually reduce to zero for those not experiencing a decline in revenues. This structure mirrors the Canada Emergency Wage Subsidy rate structure.

    Table 1
    Revenue Decline Base Subsidy Rate
    70% and over 65%
    50% to 69% 40% + (revenue drop - 50%) x 1.25
    (e.g., 40% + (60% revenue drop – 50%) x 1.25 = 52.5% subsidy rate)
    1% to 49% Revenue drop x 0.8
    (e.g., 25% revenue drop x 0.8 = 20% subsidy rate)
    Figure 1
    • text version

    Eligible Expenses

    Eligible expenses for a location for a qualifying period would include commercial rent, property taxes (including school taxes and municipal taxes), property insurance, and interest on commercial mortgages (subject to limits) for a qualifying property, less any subleasing revenues. Any sales tax (e.g., GST/HST) component of these costs would not be an eligible expense.

    Eligible expenses would be limited to those paid under agreements in writing entered into before October 9, 2020 (and continuations of those agreements) and would be limited to expenses related to real property located in Canada. Expenses that relate to residential property used by the taxpayer (e.g., their house or cottage) would not be eligible. Payments made between non-arm's-length entities would not be eligible expenses. Mortgage interest expenses in respect of a property primarily used to earn, directly or indirectly, rental income from arms-length entities would not be eligible.

    Expenses for each qualifying period would be capped at $75,000 per location and be subject to an overall cap of $300,000 that would be shared among affiliated entities.

    Eligible Entities

    Eligibility criteria for the new rent subsidy would generally align with the Canada Emergency Wage Subsidy program. Eligible entities include individuals, taxable corporations and trusts, non-profit organizations and registered charities. Public institutions are generally not eligible for the subsidy. Eligible entities also include the following groups:

    • Partnerships that are up to 50 per cent owned by non-eligible members;
    • Indigenous government-owned corporations that are carrying on a business, as well as partnerships where the partners are Indigenous governments and eligible entities;
    • Registered Canadian Amateur Athletic Associations;
    • Registered Journalism Organizations; and
    • Non-public colleges and schools, including institutions that offer specialized services, such as arts schools, driving schools, language schools or flight schools.

    In addition, an eligible entity must meet one of the following criteria:

    • have a payroll account as of March 15, 2020 or have been using a payroll service provider;
    • have a business number as of September 27, 2020 (and satisfy the Canada Revenue Agency that it is a bona fide rent subsidy claim); or
    • meet other conditions that may be prescribed in the future.

    Calculating Revenues

    Revenues will be calculated in the same manner as under the Canada Emergency Wage Subsidy program.

    • An entity's revenue for the purposes of the rent subsidy is its revenue from its ordinary activities in Canada earned from arm's-length sources, determined using its normal accounting practices. Revenues from extraordinary items and amounts on account of capital are excluded.
    • For registered charities and non-profit organizations, the calculation includes most forms of revenue, excluding revenues from non-arm's length persons. These organizations are allowed to choose whether to include revenue from government sources as part of the calculation. Once chosen, the same approach would have to apply throughout the program period.
    • Special rules for the computation of revenue are provided to take into account certain non-arm's-length transactions, such as where an entity sells all of its output to a related company that in turn earns arm's-length revenue.
    • Affiliated groups that do not normally compute revenue on a consolidated basis may elect to do so.

    Reference Periods for the Drop-in-Revenues Test

    Eligibility would generally be determined by the change in an eligible entity's monthly revenues, year-over-year, for the applicable calendar month.

    Alternatively, an entity can choose to calculate its revenue decline by comparing its current reference month revenues with the average of its January and February 2020 revenues.

    Once an entity has chosen to use either the general or alternative approach, they must use that approach for each of the three periods. The approach chosen would apply to both the base Canada Emergency Wage Subsidy and the Canada Emergency Rent Subsidy.

    An eligible entity would use the greater of its percentage revenue decline for the current qualifying period and that for the previous qualifying period in order to determine its subsidy rate. This would provide certainty to businesses regarding their expected minimum subsidy rate and aligns with the practice under the Canada Emergency Wage Subsidy.

    Table 2, below, outlines each qualifying period and the relevant reference period for determining the change in revenue.

    Table 2: Reference Periods
    Qualifying period General approach Alternative approach
    Period 8 September 27 to October 24, 2020 October 2020 over October 2019 or September 2020 over September 2019 October 2020 or September 2020 over average of January and February 2020
    Period 9 October 25 to November 21, 2020 November 2020 over November 2019 or October 2020 over October 2019 November 2020 or October 2020 over average of January and February 2020
    Period 10 November 22 to December 19, 2020 December 2020 over December 2019 or November 2020 over November 2019 December 2020 or November 2020 over average of January and February 2020
    Note: The period numbers align with those used for the Canada Emergency Wage Subsidy, for simplicity. Period 8 of the Canada Emergency Wage Subsidy program is the first period for which the rent subsidy will be in effect.

    All applications must be made on or before 180 days after the end of the qualifying period.

    The estimated cost for the first three periods of the rent subsidy program, including the new Lockdown Support for locations significantly affected by public health restrictions, is $2.2 billion in 2020-21.

    How Organizations Will Benefit

    Example 1:

    Sandy owns a kitchen supply store. The store was closed down in the initial stages of the pandemic in March and April, but has since reopened. With new safety precautions in place Sandy now limits the number of customers in her store. In September and October, her revenues are down 25 per cent compared to last year. She paid $5,000 in eligible rent costs during the first period of the rent subsidy. For this period, she will be eligible for a rent subsidy of 20 per cent, or $1,000.

    Example 2:

    Matt owns a local chain of three casual dining restaurants. With restrictions on dining room capacity, and patio business declining as cooler weather sets in, his revenues were down 40 per cent in September and 60 per cent in October, compared to the same time last year. Matt incurred $30,000 in eligible rent costs in respect of the first period of the rent subsidy. He will be eligible for a rent subsidy at a rate of 52.5 per cent, for a benefit of $15,750.

    Example 3:

    MovieCastle Group is a chain of six cinemas. MovieCastle Group fully owns each cinema, which are all incorporated separately. In September, revenues were down 70 per cent, and in October, revenues were down over 80 per cent. MovieCastle Group and its companies incurred rent costs of $600,000 in respect of the period.

    Under the rent subsidy, MovieCastle Group will be eligible for a base subsidy rate of 65 per cent on a maximum of $300,000 of rent expenses per period. At each location, only the first $75,000 of rent expenses is eligible for the subsidy. MovieCastle Group members decide to divide the maximum $300,000 for the group equally amongst the six members, and each therefore can claim $50,000 in eligible expenses. The total group benefit will be $195,000 (or 65 per cent of $300,000).

  • Lockdown Support for Businesses Facing Significant Public Health Restrictions - Government of Canada

    05 Nov 2020

    Nov. 5, 2020

    On October 9, the government proposed new targeted, direct supports for businesses, non-profits and charities facing ongoing economic challenges amidst the second wave of the COVID-19 pandemic. For organizations that are subject to a lockdown and must shut their doors or significantly limit their activities under a public health order issued under the laws of Canada, a province or territory (including orders made by a municipality or regional health authority under one of those laws), the government proposed a top-up under the new Canada Emergency Rent Subsidy to provide additional support while they face lockdowns.

    The new Lockdown Support would be available retroactive to September 27, 2020, until June 2021, during periods when businesses are facing eligible public health restrictions. The government is providing the proposed details for the first 12 weeks of the program, until December 19, 2020. The proposed program would align with many aspects of the Canada Emergency Wage Subsidy to provide a simple, easy-to-understand program directly to renters and property owners.

    This backgrounder provides information for organizations that have been significantly affected by public health restrictions and may be eligible for additional support for certain rent or property expenses. If your organization is not subject to qualifying public health lockdown restrictions, but you are currently experiencing a decline in revenues, you may still be eligible for the Canada Emergency Rent Subsidy.

    Base Rent Subsidy for Organizations Impacted by the Crisis

    With the introduction of the new Canada Emergency Rent Subsidy, qualifying organizations that have suffered a revenue drop would be eligible for a subsidy on certain expenses. As shown in Table 1 and Figure 1, the maximum base rate would be 65 per cent, available to organizations with a revenue drop of 70 per cent or more. The base rate would then gradually decline to a rate of 40 per cent for organizations with a revenue drop of 50 per cent, and then would gradually reduce to zero for those not experiencing a decline in revenues. This structure mirrors the Canada Emergency Wage Subsidy rate structure for the relevant periods.

    Lockdown Support for Locations Significantly Affected by Public Health Restrictions

    The new Lockdown Support of 25 per cent would be available to organizations with locations that are temporarily forced to close or temporarily have their business activities significantly restricted by a public health order issued under the laws of Canada or a province or territory. This would include a shutdown of a location as a result COVID-19 outbreak (as declared by a provincial, territorial or regional health authority). This follows a commitment in the Speech from the Throne to provide direct financial support to businesses temporarily shut down as a result of a local public health decision.

    Specifically, a public health restriction would be an order that meets the following conditions:

    • it is made under the laws of Canada, a province or territory (including orders made by a municipality or regional health authority under one of those laws) in response to the COVID-19 pandemic;
    • it is limited in scope based on factors such as defined geographical boundaries, type of business or other activity, or risks associated with a particular location;
    • non-compliance with the order is a federal, provincial or territorial offence or can result in the imposition of an administrative monetary penalty or other sanction imposed by the Government of Canada or a province or territory;
    • it cannot result from a violation of an order that meets the above conditions; and
    • it must be in effect, for a period of at least a week, so that some or all of the activities of the eligible entity at, or in connection with, the qualifying property are required to completely cease. In other words, limitations would be on the type of activity rather than the extent to which an activity may be performed or limits placed on the time during which an activity may be performed.

    For an organization to qualify for the Lockdown Support for a qualifying property, the following conditions must apply:

    • the organization qualifies for the base Canada Emergency Rent Subsidy; and
    • the public health order requires that the organization
      • completely shut down the location; or,
      • cease some or all of the activities at the location and it is reasonable to conclude that the ceased activities, in the appropriate pre-pandemic prior reference period, were responsible for at least approximately 25 per cent of the revenues of the entity at that location.

    If the organization is subject to a public health restriction and has to cease activities for only part of a qualifying period, the Lockdown Support would be pro-rated for the number of days in the period during which the relevant location was affected.
    The following examples illustrate some common circumstances where an organization qualifying for the base subsidy may have qualifying property (i.e., a location) that would be eligible for the Lockdown Support.

    • Restrictions on indoor dining: a restaurant that normally earns approximately 25 per cent or more of its revenues in connection with indoor dining could qualify due to its dining room being shut down even if it shifts its activities to take-out orders to make up some of the lost revenues from indoor dining.
    • Closure of bars: a bar that is ordered to close down due to a regional public health restriction, and, anticipating low demand for take-out, does not continue operating, could qualify.
    • Closure of fitness centres: a fitness center providing group fitness classes that is ordered to close down could qualify, even if, for instance, it moves to online instruction.
    • Closure of retail stores: a retail store that is ordered to close down its location in a shopping mall, but that continues to operate providing online sales and curbside pick-up, could qualify so long as its in-store sales normally accounted for at least approximately 25 per cent of its revenues.
    • Restrictions on types of personal services: an esthetics studio that earned most of its pre-pandemic revenues from services that cannot be performed while wearing a mask and can no longer be provided due to a public health restriction, could qualify.
    • Other closures of certain indoor activities: a theater or an interactive museum that is ordered to close down would qualify.
    • Closure in relation to a COVID-19 outbreak on the premises: a soup kitchen that is ordered to close down due to a specific public health restriction arising from a number of its employees contracting COVID-19 would qualify.

    The following examples illustrate some common circumstances where an organization would generally not be eligible for the Lockdown Support:

    • Reduction in business hours: a bar that is subject to a restriction requiring bars in a region to shut down by 10:00 pm each day would not qualify, as their activities would not be required to cease for a period of at least one week.
    • Requirements for physical distancing: a restaurant that earns most of its revenues in connection with indoor dining would not qualify due to a public health restriction limiting patrons to six persons per table, as it could continue to carry on its indoor dining activities.
    • Restrictions on travel: a bed and breakfast that sees a decrease in the number of clients due to travel restrictions would not qualify as it can continue to operate, and there is no order to cease its activities.
    • Reduction in the number of clients at any one time: a movie theater that is required to limit the number of clients would not qualify, as it would not be required to cease any of its activities.
    • Violation of a public health order: a factory that is required to close down due to violating a public health restriction would not qualify because the shut-down resulted from a contravention of public health orders.
    Table 1
    Revenue Decline Base subsidy rate Lockdown Support
    70% and over 65% 25%
    50% to 69% 40% + (revenue drop - 50%) x 1.25
    (e.g., 40% + (60% revenue drop – 50%) x 1.25 = 52.5% subsidy rate)
    25%
    1% to 49% Revenue drop x 0.8
    (e.g., 25% revenue drop x 0.8 = 20% subsidy rate)
    25%
    Figure 1
    • Text version

    Eligible Expenses

    Eligible expenses for a qualifying property for a qualifying period would include commercial rent, property taxes (including school taxes and municipal taxes), property insurance, and interest on commercial mortgages (subject to limits), less any subleasing revenues. Any sales tax (e.g., GST/HST) component of these costs would not be an eligible expense.

    Eligible expenses would be limited to those paid under agreements in writing entered into before October 9, 2020 (and continuations of those agreements) and would be limited to expenses related to real property located in Canada. Expenses that relate to residential property used by the taxpayer (e.g., their house or cottage) would not be eligible. Payments made between non-arm’s-length entities would not be eligible expenses. Mortgage interest expenses in respect of a property primarily used to earn, directly or indirectly, rental income from arms-length entities would not be eligible.

    For the purpose of the base subsidy, expenses for each qualifying period would be capped at $75,000 per location and be subject to an overall cap of $300,000 that would be shared among affiliated entities. For the purpose of the new Lockdown Support for those affected by public health restrictions, eligible expenses would be capped at $75,000 per location, but no overall cap would apply.

    Eligible Entities

    Eligibility criteria would generally align with the Canada Emergency Wage Subsidy program. Eligible entities include individuals, taxable corporations and trusts, non-profit organizations and registered charities. Public institutions are generally not eligible for the subsidy. Eligible entities also include the following groups:

    • Partnerships that are up to 50 per cent owned by non-eligible members;
    • Indigenous government-owned corporations that are carrying on a business, as well as partnerships where the partners are Indigenous governments and eligible entities;
    • Registered Canadian Amateur Athletic Associations;
    • Registered Journalism Organizations; and
    • Non-public colleges and schools, including institutions that offer specialized services, such as arts schools, driving schools, language schools or flight schools.

    In addition, an eligible entity must meet one of the following criteria:

    • have a payroll account as of March 15, 2020 or have been using a payroll service;
    • have a business number as of September 27, 2020 (and satisfy the Canada Revenue Agency that it is a bona fide rent subsidy claim); or
    • meet other prescribed conditions.

    Calculating Revenues

    Revenues will be calculated in the same manner as under the Canada Emergency Wage Subsidy program.

    • An entity's revenue for the purposes of the rent subsidy is its revenue from its ordinary activities in Canada earned from arm's-length sources, determined using its normal accounting practices. Revenues from extraordinary items and amounts on account of capital are excluded.
    • For registered charities and non-profit organizations, the calculation includes most forms of revenue, excluding revenues from non-arm's length persons. These organizations are allowed to choose whether to include revenue from government sources as part of the calculation. Once chosen, the same approach would have to apply throughout the program period.
    • Special rules for the computation of revenue are provided to take into account certain non-arm's-length transactions, such as where an entity sells all of its output to a related company that in turn earns arm's-length revenue.
    • Affiliated groups that do not normally compute revenue on a consolidated basis may elect to do so.

    Reference Periods for the Drop-in-Revenues Test

    Eligibility would generally be determined by the change in an eligible entity's monthly revenues, year-over-year, for the applicable calendar month.

    Alternatively, an entity can choose to calculate its revenue decline by comparing its current reference month revenues with the average of its January and February 2020 revenues.

    Once an entity has chosen to use either the general or alternative approach, they must use that approach for each of the three periods. The approach chosen would apply for the purpose of both the base Canada Emergency Wage Subsidy and Canada Emergency Rent Subsidy.

    An eligible entity would use the greater of its percentage revenue decline for the current qualifying period and that for the previous qualifying period in order to determine its subsidy rate. This would provide certainty and aligns with the practice under the Canada Emergency Wage Subsidy.

    Table 2 below outlines each qualifying period and the relevant period for determining change in revenue.

    Table 2
    Reference periods
    Qualifying period General approach Alternative approach
    Period 8 September 27 to October 24, 2020 October 2020 over October 2019 or September 2020 over September 2019 October 2020 or September 2020 over average of January and February 2020
    Period 9 October 25 to November 21, 2020 November 2020 over November 2019 or October 2020 over October 2019 November 2020 or October 2020 over average of January and February 2020
    Period 10 November 22 to December 19, 2020 December 2020 over December 2019 or November 2020 over November 2019 December 2020 or November 2020 over average of January and February 2020
    Note: The period numbers align with those used for the Canada Emergency Wage Subsidy, for simplicity. Period 8 of the Canada Emergency Wage Subsidy program is the first period for which the rent subsidy will be in effect.

    All applications must be made on or before 180 days after the end of the qualifying period.

    The estimated cost for the first three periods of the rent subsidy program, including the top-up for locations significantly affected by public health restrictions, is $2.2 billion in 2020-21.

    How Organizations Will Benefit

    Example 1:

    Sonia is the owner of a gym that was fully locked down on September 20 under provincial order. In September, her revenues were down by 50 per cent because of the physical distancing measures, and her revenues in October will fall to zero. Her rent expenses for the period are $10,000. Sonia will be eligible for the 25 per cent Lockdown Support, or $2,500. In addition, Sonia will receive a base rent subsidy of 65 per cent, or $6,500, for a combined total of $9,000.

    Example 2:

    Restaurant Inc is a chain of restaurants with 10 locations. In September, revenues were down 70 per cent, and in October, revenues were down over 80 per cent when the dining rooms of six of their 10 locations were shut down under a regional public health order effective October 10. Restaurant Inc incurred rent costs of $400,000 in respect of the period, $120,000 of which related to the six locations closed by public health order. Under the rent subsidy, Restaurant Inc will be eligible for a base subsidy rate of 65 per cent plus the new Lockdown Support of 25 per cent with respect to the six locations closed by public health order for the days they were affected (in this case 15 days out of the 28-day period). As shown in Table 3 below, Restaurant Inc will be able to benefit from the base subsidy and the Lockdown Support. The base subsidy would apply on $300,000 in eligible expenses (the monthly cap), for a benefit of $195,000. The Lockdown Support is only capped per location, meaning it would apply on $120,000 of eligible expenses ($20,000 x 6), and is pro-rated to the number of days in the qualifying period that the business was affected by the public health order. As such, the benefit associated with the Lockdown Support would be of $16,071 ($120,000 x 25% x 15/28). This would result in a total rent subsidy of $211,071 for the month of October.

    Table 3
    Example of subsidy calculation for Restaurant Inc
    Subsidy rate Eligible expenses Eligible days Subsidy
    Base rent subsidy 65% $300,000 28 65% x $300,000 = $195,000
    Lockdown Support 25% $20,000 x 6 =$120,000 15/28 25% x $120,000 x 15/28 = $16,071
    Total $211,071


  • Details on the Canada Emergency Wage Subsidy Extension - Government of Canada

    05 Nov 2020

    Nov. 5, 2020

    The government introduced the Canada Emergency Wage Subsidy to protect Canadian jobs, encourage employers to quickly rehire workers previously laid off because of COVID-19, and help bridge the Canadian economy to the other side of this unprecedented crisis. The wage subsidy program was put in place for an initial 12-week period from March 15 to June 6, 2020, providing a 75 per cent wage subsidy to eligible employers. On May 15, 2020, the government announced a 12-week extension, to August 29, 2020. On July 17, 2020, the government unveiled a redesign allowing more employers to access wage subsidy support while ensuring that support is better targeted to their needs, and proposed a further extension to December 19, 2020.

    The government is proposing to further extend the wage subsidy program until June 2021 and implement other enhancements to the program to better respond to the evolving economic and health situation. These proposed changes will make the program more flexible and more generous, and ensure that the program provides continued support to employers.

    Details of the program until December 19, 2020 are provided here. The government will provide details for the upcoming periods in advance of the current terms’ expiry and will ensure the wage subsidy program continues to be responsive to the economic situation.

    Maintaining the Base Subsidy at its Current Level Until December

    The wage subsidy includes a base subsidy for all employers whose revenues have been impacted by the pandemic. The base subsidy rate for Period 8 (September 27 to October 24, 2020) would continue to apply for Periods 9 and 10 (October 25 to December 19, 2020). As such, the maximum base subsidy rate would be set at 40 per cent for this period. Table 1, below, shows the new rate structure of the base subsidy.

    Timing Period 8:
    September 27 – October 24
    Period 9:
    October 25 – November 21
    Period 10:
    November 22 – December 19
    Table 1
    New Rate Structure of the Base Subsidy, Periods 8-10
    Maximum weekly benefit per employee Up to $452 Up to $452 Up to $452
    Revenue drop


    50% and over 40% 40% 40%
    0% to 49% 0.8 x revenue drop
    (e.g., 0.8 x 20% revenue drop = 16% base subsidy rate)
    0.8 x revenue drop
    (e.g., 0.8 x 20% revenue drop = 16% base subsidy rate)
    0.8 x revenue drop
    (e.g., 0.8 x 20% revenue drop = 16% base subsidy rate)

    The new rate structure for the base wage subsidy would replace the one previously announced on July 17, 2020 for Period 9.

    Top-up Wage Subsidy More Responsive to Support the Most Affected Employers

    A top-up wage subsidy of up to 25 per cent is available to employers most adversely impacted by the pandemic. Currently, an eligible employer’s top-up wage subsidy is generally determined based on the revenue drop over the preceding three months compared to the same months in the prior year. Under the alternative approach to the calculation of baseline revenues, the top-up wage subsidy is determined based on the revenue drop experienced when comparing average monthly revenue in the preceding three months to the average monthly revenue in January and February 2020.

    To make the top-up wage subsidy more responsive to sudden changes in revenue, the revenue-decline test for the base subsidy and the top-up wage subsidy would be harmonized from September 27, 2020 onward. Instead of using the current three-month revenue-decline test for the top-up wage subsidy, both the base and top-up wage subsidies would be determined by the change in an eligible employer's monthly revenues, year-over-year, for either the current or previous calendar month. This means an employer with a 70 per cent or greater revenue loss in a single period would be eligible for a 65-per-cent wage subsidy. For employers using the alternative method (announced on April 8, 2020), both the base subsidy and the top-up wage subsidy would be determined by comparing its current monthly revenues with the average of its January 2020 and February 2020 revenues.

    Because the wage subsidy would now be based on the current month’s revenue losses, instead of the preceding three months’, an employer who had strong revenues over the summer, but is facing a revenue decline of over 50 per cent in Period 8, would qualify for a more generous wage subsidy this fall.

    Table 2, below, shows the new combined rate structure with the base subsidy and the top-up wage subsidy.

    Timing Period 8:
    September 27 – October 24
    Period 9:
    October 25 – November 21
    Period 10:
    November 22 – December 19
    Table 2
    Rate Structure of the Combined Base Subsidy and the Top-up Wage Subsidy, Periods 8-10
    Maximum weekly benefit per employee Up to $734 Up to $734 Up to $734
    Revenue drop


    70% and over 65% 65% 65%
    50% to 69% 40% + 1.25 x (revenue drop - 50%)
    (e.g., 40% + 1.25 x (60% revenue drop - 50%) = 52.5% combined base and top-up wage subsidy rate)
    40% + 1.25 x (revenue drop - 50%)
    (e.g., 40% + 1.25 x (60% revenue drop - 50%) = 52.5% combined base and top-up wage subsidy rate)
    40% + 1.25 x (revenue drop - 50%)
    (e.g., 40% + 1.25 x (60% revenue drop - 50%) = 52.5% combined base and top-up wage subsidy rate)
    0% to 49% 0.8 x revenue drop 0.8 x revenue drop 0.8 x revenue drop
    Figure 1
    Rate Structure of the Combined Base Subsidy and the Top-up Wage Subsidy

    • Text version

    Under the alternative approach, both the base subsidy and the top-up wage subsidy would be determined by the change in an eligible employer's monthly revenues relative to the average of its January 2020 and February 2020 revenues. Table 3, below, outlines each qualifying period and the relevant period for determining an eligible employer’s change in revenue.

    Employers that had chosen to use the general approach to choosing a prior reference period for Period 5 (July 5 to August 1) and onward would continue to use that approach. Similarly, employers that had chosen to use the alternative approach for Period 5 and onward would continue to use the alternative approach.

    An eligible employer would use the greater of its percentage revenue decline for the current qualifying period and that for the previous qualifying period for the purpose of determining its combined base subsidy and top-up wage subsidy rate for the current qualifying period.

    Timing Period 8:
    September 27 – October 24
    Period 9:
    October 25 – November 21
    Period 10:
    November 22 – December 19
    Table 3
    Reference Periods for the Base Subsidy and the Top-up Wage Subsidy
    General approach October 2020 over October 2019 or September 2020 over September 2019 November 2020 over November 2019 or October 2020 over October 2019 December 2020 over December 2019 or November 2020 over November 2019
    Alternative approach October 2020 or September 2020 over average of January and February 2020 November 2020 or October 2020 over average of January and February 2020 December 2020 or November 2020 over average of January and February 2020

    Safe Harbour Rule for the Top-up Wage Subsidy for Periods 8 through 10

    For Periods 8 through 10, an eligible employer would be entitled to a top-up wage subsidy rate not lower than the rate that it would be entitled to if its entitlement were calculated under the three month revenue-decline test. Under this safe harbour rule, an eligible employer’s top-up wage subsidy would generally be determined based on the revenue drop experienced when comparing revenues in the preceding three months to the same months in the prior year. Under the alternative approach to the calculation of baseline revenues, an eligible employer’s top-up wage subsidy would be determined based on the revenue drop experienced when comparing average monthly revenue in the preceding three months to the average monthly revenue in January and February 2020. Table 4, below, outlines the reference periods for the safe harbour rule.

    Timing Period 8:
    September 27 – October 24
    Period 9:
    October 25 – November 21
    Period 10:
    November 22 – December 19
    Table 4
    Reference Periods for the Top-up wage Subsidy Safe Harbour Rule
    General approach July to September 2020 over July to September 2019 August to October 2020 over August to October 2019 September to November 2020 over September to November 2019
    Alternative approach July to September 2020 average over January and February 2020 average* August to October 2020 average over January and February 2020 average* September to November 2020 average over January and February 2020 average*

    * The calculation would equal the average monthly revenue over the three months of the reference period divided by the average revenue for the months of January and February 2020.

    Alignment of Benefits for Furloughed Employees

    As announced on October 14, 2020, for Periods 9 (October 25 to November 21) and 10 (November 22 to December 19), the wage subsidy for furloughed employees would be adjusted to align with the benefits provided through Employment Insurance (EI) to ensure equitable treatment of employees on furlough between both programs.

    Specifically, the wage subsidy calculation for a furloughed employee would be the lesser of:

    • the amount of eligible remuneration paid in respect of the week; and
    • the greater of:
      • $500, and
      • 55 per cent of pre-crisis remuneration for the employee, up to a maximum subsidy amount of $573.

    The employer portion of contributions in respect if the Canada Pension Plan, EI, the Quebec Pension Plan, and the Quebec Parental Insurance Plan in respect of furloughed employees would continue to be refunded.

    Special Baseline Remuneration Period for Employees Returning from Leave

    Under the general rules, an eligible employer’s entitlement to the wage subsidy for a furloughed employee, as well as an active employee in certain circumstances, is determined through a calculation that takes into account both the employee’s current and baseline (pre-crisis) remuneration.

    Baseline remuneration means the average weekly eligible remuneration paid to an eligible employee by an eligible employer during the period beginning January 1, 2020, and ending March 15, 2020. Any period of seven or more consecutive days for which the employee was not remunerated is excluded from the calculation. However, the eligible employer may elect, for each qualifying period in respect of an employee, an alternative baseline period for calculating the average weekly eligible remuneration. For Periods 5 through 9 (July 5 to November 21, 2020), the alternative baseline remunation period begins on July 1, 2019 and ends on December 31, 2019. An eligible employer may elect the alternative baseline period because, for example, an eligible employee was on leave through the duration of the regular baseline remuneration period.

    Under proposed new rules, employers would be given greater flexibility to claim the wage subsidy in respect of employees returning from maternity leave, parental leave, caregiver leave or long-term sick leave. An eligible employer would be able to elect for each qualifying period from Periods 5 to 10 (July 5 to December 19, 2020), a special baseline remuneration period in respect of an eligible employee returning from a continuous maternity, parental, caregiver, or long-term sick leave that began before July 1, 2019 and ended after March 15, 2020. The special remuneration period would be the 90-day period ending immediately before the beginning of the employee’s leave period.

    The proposed new baseline remuneration periods for Periods 5 to 10 (July 5 to December 19, 2020) are summarized in table 5 below:

    Regular baseline remuneration period Alternative baseline remuneration period Special baseline remuneration period*
    Table 5
    Baseline Remuneration Periods for Periods 5 to 10
    January 1 to March 15, 2020 July 1, 2019 to December 31, 2019 90-day period ending immediately before the beginning of the employee’s leave period

    * Available for eligible employees returning from a continuous maternity, parental, caregiver, or long-term sick leave that began before July 1, 2019 and ended after March 15, 2020.

    Application Period

    Currently, to qualify for the wage subsidy for a qualifying period, an eligible employer must make an application for the qualifying period, in a prescribed form and manner, no later than January 31, 2021.

    With the extension of the wage subsidy, to ensure that employers have sufficient time to make their wage subsidy applications, the proposed new deadline to make an application for a qualifying period would be the later of January 31, 2021 or 180 days after the end of the qualifying period.

    Asset Purchases

    The wage subsidy has a relieving rule that applies when an entity purchases all or substantially all of business assets of a seller. If the purchaser and seller jointly elect, the purchaser can use the prior reference period revenues associated with those assets for the purpose of computing its revenue decline.

    This rule would be expanded to allow it to be used when an entity purchases the assets of a business, or of a distinct part of a business, of an arm’s length seller and the purchaser uses those assets to carry on a business. As with the existing rule, the purchaser and seller would need to make a joint election.

    Eligible Employees

    Eligible employees are employees for whom the wage subsidy can be claimed. An amendment to the definition “eligible employee” would ensure that only employees of an eligible entity employed primarily in Canada throughout a qualifying period (or portion of a qualifying period during which the employee was employed by the eligible entity) would be considered eligible employees for the purpose of the wage subsidy.

  • Minister Ng announces new measures to help Canadian small businesses access global markets amid COVID-19 - Government of Canada

    03 Nov 2020

    Nov. 3, 2020

    Helping Canada’s small businesses go global is key to driving economic recovery.

    Today, the Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, announced new actions to help Canadian businesses grow while navigating the challenges of the COVID-19 pandemic in the global marketplace.

    The Government of Canada launched the CanExport SMEs program—delivered through the Trade Commissioner Service—in 2016. As an investment totalling $190 million, this program has helped thousands of small business owners and entrepreneurs break into new international markets with funding of up to $75,000 to cover travel costs and other expenses.

    With international travel restricted due to COVID-19, the CanExport SMEs program is pivoting to now help small businesses:

    • develop and expand their e-commerce presence by covering partial costs associated with online sales platforms and digital strategy consulting, as well as advertising and search engine optimization
    • attend virtual trade shows and other business-to-business events
    • navigate new COVID-19-related trade barriers by helping pay for new international market certifications and requirements

    Canada is working to build a sustainable and resilient recovery that benefits everyone. That is why these new measures will also provide dedicated support for Indigenous and women-owned small businesses, which have been disproportionately impacted by the COVID-19 crisis.

    This new support will help hundreds of small businesses in the coming months explore new opportunities to sell their world-class Canadian products and services in the international marketplace, grow their businesses, and create good jobs for Canadians.

    Small business owners and entrepreneurs are encouraged to apply for CanExport SMEs program funding.

  • Webinars Help Coquitlam Businesses Get Online for Free - City of Coquitlam

    29 Oct 2020

    Oct. 29, 2020

    Coquitlam is offering its businesses the opportunity to quickly build a free web presence – something that is more important now than ever.

    The City has partnered with Webnames.ca, a B.C.-based domain registrar and website management firm with roots in Coquitlam, to host two free one-hour webinars Nov. 17 at 11 a.m. and Nov. 26 at 4 p.m. The sessions will show Coquitlam businesses how they can launch a simple website for no cost for the first year, as well as how to grow web traffic.

    The project is offered through the Coquitlam COVID-19 Community Support and Recovery Plan (CSRP).

    Sign Up for Webinars Today

    Many businesses are struggling during the pandemic, and small businesses that are not online are among those suffering the most. A consumer survey conducted by the City in late spring showed that while about a third of Coquitlam residents are supporting local businesses more now, more of them are turning to online shopping, delivery and ordering for curbside pickup. Additionally, most indicated they research business information online including store hours, menus and other offerings.

    Coquitlam small businesses that attend the free, no-obligation webinars Tuesday, Nov. 17 and Thursday, Nov. 26 will get information on how to set up a Webnames.ca LiteSite package at no cost that includes a .CA domain name (web address), a one-page website with free hosting for one year, an email address reflecting the domain name, and a SSL certificate (security encryption).

    Participating businesses will own their own domain name and have a professional email address that provides credibility. Having a dedicated web presence is an important component of an overall brand and marketing strategy, in addition to a social media presence.

    After the first year, renewals will be available at $50 per year – a good value even if only for the domain name and email. However, there will be no obligation to continue the service beyond the first free year.

    The Nov. 17 webinar will teach participants how to plan and launch a website, while the Nov. 26 webinar will focus on how to grow web traffic to make the most of their new online presence.

    Businesses can sign up by contacting the City’s Economic Development team at economicdevelopment@coquitlam.ca or 604-927-3905.

    The offer is open to any Coquitlam small business (up to 50 employees) with a valid City business licence.

    Recordings of the webinars will also be posted online at www.letstalkcoquitlam.ca/business as well as on the City’s YouTube channel following the sessions.

    More Ways to Get Online

    Coquitlam businesses can also promote themselves online for free by:

    About Webnames.ca

    Webnames.ca is Canada's original domain registrar and a one-stop convenience for the online needs of individuals, small businesses, nonprofit organizations and corporations. Canadian owned and operated since 2000, Webnames.ca began as a spin-off from the internet pioneers who founded the .CA country code in 1987. The company’s CEO has roots in Coquitlam as a former resident and business owner.

    More Supports Coming From CSRP

    Coquitlam continues to roll out supports through its COVID-19 Community Support and Recovery Plan (CSRP), introduced in May to provide direct relief to residents, businesses and non-profits and to foster community resilience and recovery.

    Initiatives being considered this fall and beyond include grants to City cultural partners, increased business supports, and support for community and non-profit services and programs. To promote economic recovery, the City will also continue to monitor and leverage provincial and federal government stimulus funding announcements.

    Because the CSRP is intended to be flexible and responsive to new challenges and opportunities, programs may change or be added in the months ahead. Information and updates will be posted at www.coquitlam.ca/CSRP.

  • Canada Emergency Business Account now open to businesses using personal banking accounts - Government of Canada

    26 Oct 2020

    Oct. 26, 2020

    The Government of Canada is providing continued support to small business owners and entrepreneurs to help them adapt and position their businesses for recovery.

    Today, the Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland announced that as early as October 26, 2020, the Canada Emergency Business Account (CEBA) will be available to businesses that have been operating out of a non-business banking account.

    To be eligible, businesses must have been operating as a business as of March 1, 2020, must successfully open a business account at a Canadian financial institution that is participating in CEBA, and meet the other existing CEBA eligibility criteria. The deadline to apply for CEBA is December 31, 2020.

    CEBA is part of the Government of Canada’s economic response plan to help Canadians and Canadian businesses deal with the COVID-19 pandemic. The measures under this plan are helping businesses keep their doors open, keep their employees on payroll, protect the jobs that Canadians depend on, and recover quickly when the time comes.