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CEWS Extension and CECRA Launch Date

CEWS Extension to August 29, 2020


The federal government announced on May 15, 2020 that it will be extending the 75% CEWS wage subsidy another 12 weeks to August 29, 2020. Changes to the CEWS eligibility criteria can also be expected in about one month's time as the government will be consulting with key businesses and labour representatives with a particular focus on adjusting the 30% revenue decline benchmark for eligibility. Changes in this regard will likely be necessary to provide businesses with support while they start to reopen since businesses will hopefully start to see an increase in revenues over the coming months.

Further, although it appears that they are not formally passed as of the date of this blog post, Bill Morneau announced that eligibility has been changed, retroactive to March 15, 2020, so that the following groups can receive the CEWS:

  • 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 employers;  
  • 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.
The government also intends to make changes to the CEWS to:

  • Provide flexibility for employers of existing employees who were not regularly employed in early 2020, such as seasonal employees;
  • Ensure that the CEWS applies appropriately to corporations formed on the amalgamation of two predecessor corporations and
  • Better align the treatment of trusts and corporations for the purpose of determining CEWS eligibility.
More details about the CEWS extension and changes are expected soon.

CECRA Launching May 25, 2020

Prime Minister Trudeau announced earlier today that the Canada Emergency Commercial Rent Assistance (CECRA) application portal will be available through the CMHC website on May 25, 2020 at 8:00 a.m. Small business commercial tenants and their landlords can apply for this program, which will decrease commercial tenants' rents by 75%. While landlords will lose 25% of their commercial rents, the government is hoping that landlords will see the benefit of retaining their current tenants during these difficult times and absorb this cost.

Note: while this blog and the information above provides general information, it does not constitute legal advice. The best way to get guidance on your specific legal issue is to contact a lawyer. For more information about the CEWS or CECRA, or if you have any other questions regarding your employment or commercial tenancy issue, please contact our office for a consultation with one of our lawyers.
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