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Canada’s new COVID-19 subsidies target tourism and hospitality and hardest-hit businesses

Ottawa – The federal government is shifting from the broad-based support offered at the height of pandemic lockdowns to more targeted measures, including two new subsidy programs for tourism and hospitality and hardest-hit businesses.

According to a news release from the Department of Finance Canada, the government is proposing the following changes to business support programs:

• Extending the Canada Recovery Hiring Program until May 7, 2022, for eligible employers with current revenue losses above 10 per cent and increase the subsidy rate to 50 per cent. The extension would help businesses continue to hire back workers and to create the additional jobs Canada needs for a full recovery.
• Delivering targeted support to businesses that are still facing significant pandemic-related challenges. Support would be available through two streams: the Tourism and Hospitality Recovery Program, which would provide support through the wage and rent subsidy programs, to hotels, tour operators, travel agencies, and restaurants, with a subsidy rate of up to 75 per cent, and the Hardest-Hit Business Recovery Program, which would provide support through the wage and rent subsidy programs, would support other businesses that have faced deep losses, with a subsidy rate of up to 50 per cent.

Applicants for these programs will use a new “two-key” eligibility system whereby they will need to demonstrate significant revenue losses over the course of 12 months of the pandemic, as well as revenue losses in the current month.

Businesses that face temporary new local lockdowns will be eligible for up to the maximum amount of the wage and rent subsidy programs, during the local lockdown, regardless of losses over the course of the pandemic.

These programs will be available until May 7, 2022, with the proposed subsidy rates available through to March 13, 2022. From March 13, 2022, to May 7, 2022, the subsidy rates will decrease by half.

To ensure that workers continue to have support and that no one is left behind, the government proposes to:

• Extend the Canada Recovery Caregiving Benefit and the Canada Recovery Sickness Benefit until May 7, 2022, and increase the maximum duration of benefits by 2 weeks. This would extend the caregiving benefit from 42 to 44 weeks and the sickness benefit from four to six weeks.
• Establish the Canada Worker Lockdown Benefit which would provide $300 a week in income support to eligible workers should they be unable to work due to a local lockdown anytime between Oct. 24, 2021 and May 7, 2022.