How the subsidies are calculated: COVID-19 rent and property support for businesses
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COVID-19 rent and property expense support for businesses
Sections
- What the changes are
- Who can apply
- Expenses you can claim
- Periods you can apply for
- Calculate your amount
- How to apply
- After you apply
- Contact us about a rent subsidy
How the subsidies are calculated
On this page
- Use the online calculator
- How much you may claim
- Calculating your rent subsidy rate
- Lockdown support top-up eligibility criteria
- Calculating your lockdown support top-up amount
Use the online calculator
You can use the online calculator before you apply to calculate your amount and see which subsidy you can claim:
- Tourism and Hospitality Recovery Program (THRP) - rent amount, or
- Hardest-Hit Business Recovery Program (HHBRP) - rent amount
How much you may claim
The THRP and HHBRP provide a base rent subsidy amount and in some cases, a lockdown support top-up amount.
In each claim period, you may claim eligible expenses up to certain maximum amounts:
| Maximum eligible expense | CERS Ended | THRP | HHBRP |
|---|---|---|---|
| Per business location | $75,000 | $75,000 | $75,000 |
| Total for all locations Applies to base subsidy only. There is no maximum for the lockdown support top-up |
$300,000 | $1,000,000 | $1,000,000 |
If you are part of an affiliated group that is applying for a rent subsidy, the maximum amounts for eligible expenses apply to the entire group.
If you must close or cease certain activities at one or more of your locations under a public health restriction for one week or longer, you may be eligible for a lockdown support top-up amount of up to 25% of eligible expenses per affected location for the days the restriction was in place in the claim period.
Calculating your rent subsidy rate
Your rent subsidy rate is based on the revenue drop you experienced between the claim period you are applying for and the corresponding prior reference period.
How the claim period revenue drop is calculated
This revenue drop is used to calculate your rent subsidy rate.
How the rent subsidy rate is calculated for the THRP
| Claim period |
Claim period revenue drop |
Subsidy rate |
|---|---|---|
| 22 and 23 | 75% and over | 75% |
| 40 to 74.99% | same as claim period revenue drop Example: 60% revenue drop = 60% subsidy rate |
|
| less than 40% | 0% | |
| 24 to 26, if you are a qualifying tourism and hospitality entity |
75% and over | 75% |
| 40 to 74.99% | same as claim period revenue drop Example: 60% revenue drop = 60% subsidy rate |
|
| less than 40% | 0% | |
| 24 to 26, if you were subject to a qualifying public health restriction or qualifying partial (capacity-limiting) public health restriction |
75% and over | 75% |
| 25 to 74.99% | same as claim period revenue drop Example: 30% revenue drop = 30% subsidy rate |
|
| less than 25% | 0% | |
| 27 and 28 | 75% and over | 37.5% |
| 40 to 74.99% | claim period revenue drop ÷ 2 Example: 60% revenue drop ÷ 2 = 30% subsidy rate |
|
| less than 40% | 0% |
How the rent subsidy rate is calculated for the HHBRP
| Claim period |
Claim period revenue drop |
Subsidy rate |
|---|---|---|
| 22 to 26 | 75% and over | 50% |
| 50 to 74.99% | 10% + (revenue drop − 50%) × 1.6 Example: 10% + (60% revenue drop − 50%) × 1.6 = 26% subsidy rate |
|
| less than 50% | 0% | |
| 27 and 28 | 75% and over | 25% |
| 50 to 74.99% | 5% + (revenue drop − 50%) × 0.8 Example: 5% + (60% revenue drop − 50%) × 0.8 = 13% subsidy rate |
|
| less than 50% | 0% |
How the rent subsidy rate was calculated for the CERS Ended
| Claim period |
Claim period revenue drop |
Subsidy rate |
|---|---|---|
| 1 to 10 | 70% or more | 65% |
| 50 to 69.99% | (Your revenue drop - 50%) x 1.25 + 40% | |
| Less than 50% | 0.8 x your revenue drop | |
| 11 | 70% or more | 60% |
| 50 to 69.99% | (Your revenue drop – 50%) x 1.25 + 35% | |
| 10.01 to 49.99% | (Your revenue drop – 10%) x 0.875 | |
| 10% or less | 0% | |
| 12 and 13 | 70% or more | 40% |
| 50 to 69.99% | (Your revenue drop – 50%) x 0.75 + 25% | |
| 10.01 to 49.99% | (Your revenue drop – 10%) x 0.625 | |
| 10% or less | 0% | |
| 14 | 70% or more | 20% |
| 50 to 69.99% | (Your revenue drop – 50%) x 0.5 + 10% | |
| 10.01 to 49.99% | (Your revenue drop – 10%) x 0.25 | |
| 10% or less | 0% |
Lockdown support top-up eligibility criteria
To qualify for the lockdown support top-up, you must have:
- at least the minimum revenue drop that is required for the claim period
- one or more locations temporarily closed, or have activities stopped for a week or longer due to a COVID-19-related public health order
- the minimum lockdown period can span across two different claim periods
Example – Gloria’s Gift Shop
Gloria owns a gift shop in Ontario.
Her location was closed due to a COVID-19 related public health order from May 4, 2021 to May 12, 2021 inclusive. Claim period 8 ended on May 8, 2021.
This means her location was locked down for 9 days total, but:
- 5 days occurred in claim period 8
- 4 days occurred in claim period 9
A public health restriction is an order that meets certain conditions. It must:
- be based on an order or decision issued by a federal, provincial, or municipal government, or a local health authority in response to the COVID-19 pandemic
- be limited in scope based on one or more factors such as:
- geographical boundaries
- type of business or other activity
- risks associated with a particular location
- result in sanctions or be an offence if you do not comply
- requires you or your non-arm's-length tenant to stop some or all regular activities at the qualifying property for at least 7 days in a row
- the activities that were stopped must account for at least approximately 25% of the eligible revenues earned during the prior reference period from or in connection with the affected qualifying property
An order that restricts or reduces activities but doesn’t require you to close or stop certain activities does not qualify for a lockdown support top-up.
Examples of restrictions that do not qualify for a lockdown support top-up
- travel restrictions that reduce the number of clients
- rules about when you can perform your regular activities, such as
- restricted or reduced service hours or hours of operation
- any other restrictions that do not specifically order you to stop or close an activity, such as
- reduced seating capacity or other physical distancing strategies
You do not qualify for a lockdown support top-up if you are already restricted or closed because you failed to comply with a previous public health order or decision.
Calculating your lockdown support top-up amount
In addition to the rent subsidy rate, you may receive a lockdown support top-up for locations affected by a public health restriction. Lockdown support is calculated on a location-by-location basis.
Your lockdown support rate is 25%, calculated as:
- 25% fixed lockdown rate
- times days in the claim period that the location was affected by a public health restriction
- divided by 28 (the total days in the claim period)
- equals Your lockdown support top-up rate
Example lockdown support rate calculation
For example, if one of your business locations was affected by a public health restriction for 7 days during the 28 day period, you would be eligible to receive:
- 25% base lockdown support top-up rate multiplied by
- 7 days out of 28
- for a 6.25% lockdown support rate.
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- Date modified:
- 2022-04-22