Canada - CRA has begun administering the Canada Emergency Rent Subsidy

On November 23, 2020, the Canada Revenue Agency (CRA) began accepting applications to the Canada Emergency Rent Subsidy (CERS). The CERS is one element of the Government of Canada COVID-19 Economic Response Plan, which is helping to support Canadian workers and businesses during the pandemic. The CERS provides targeted, direct relief to businesses, non-profit organizations, and charities that face the economic impacts of COVID-19.  

The CERS provides direct support of up to 65% of eligible expenses to tenants and property owners for qualifying organizations affected by COVID-19. Eligible expenses include commercial rent, property taxes, property insurance, and interest on commercial mortgages for a qualifying property, less any subleasing revenues. Any sales tax component of these costs is not an eligible expense. Qualifying organizations that are subject to a lockdown and must stop or significantly limit their activities under a public health order may be eligible for additional Lockdown Support of 25% of eligible expenses.

Qualifying organizations can apply directly for the subsidy through the CRA My Business Account, or Represent a Client online portals, without the need to claim the assistance through their landlords. As part of the process, applicants are required to register in My Business Account or Represent a Client for a new Business Number Program Account Identifier, used specifically for the CERS program. Organizations also need to provide specific information and attest that they meet the eligibility criteria for the program. 

The CRA has launched CERS web pages, including an online calculator, to assist organizations in preparing their applications. The CERS calculator guides applicants through a step-by-step calculation of the CERS and helps them determine the subsidy amount they can claim.

The CRA recognizes that many businesses, non-profits and charities have been severely affected by the COVID-19 pandemic, and is making it a priority to deliver CERS payments as quickly as possible.  To this end, the CRA has developed validation processes allowing many claims to be paid without manual intervention, and ensuring that interventions to verify information are handled quickly and with a minimal administrative burden. To ensure that payments can be issued in as timely a manner as possible, the CRA is processing claims using an automated verification system that compares claimant information with information already on file.

More information about the CERS and other benefit programs related to COVID-19 that are administered by the CRA is available at: CRA and COVID-19: Changes to taxes and benefits.