Canada Emergency Rent Subsidy CERS | Lockdown Support | Applications Open Nov. 23, 2020

Canada Emergency Rent Subsidy – this is everything you need to know for a successful application including lockdown support 📚 Recommended Reading List: https://amzn.to/38NWwLR The Federal Government has released additional background details into the Canada Emergency Rent Subsidy (“CERS”) program earlier in November. The CERS’ predecessor, the Canada Emergency Commercial Rent Assistance (CECRA), was widely criticized for relying on buy-in from landlords, many of whom did not participate in the program. ************************ Watch Next: ▶ Canadian Housing Market Crash: What Goes Up, Comes Down? | Canadian Housing Market Update Nov. 2020    • Canadian Housing Market Crash: What Goes U...   ▶ The 2021 Canadian Housing Crash? | Canadian Real Estate 2021 Forecast and Outlook    • The 2021 Canadian Housing Crash? | Canadia...   ************************ 💲 EARN up to $250 by Opening an Account with Questrade! https://bit.ly/3mgW7G3 💲 EARN 2.5% Cash Back on Everyday Purchases from American Express: https://bit.ly/36dLqhO ✔ Subscribe Here:    / danishghazicpa   ✔ Instagram: https://bit.ly/2Jhgncb ************************ Unlike Canada Emergency Commercial Rent Assistance (CECRA), there are no maximum rent thresholds that disqualify larger tenants from eligibility and it appears that tenants who have expenses that exceed the Canada Emergency Rent Subsidy CERS cap amounts will still be able to obtain subsidies for eligible expenses within the specified limits. As of early October, the Government of Canada has delivered over $1.8 billion in rent support, through the Canada Emergency Commercial Rent Assistance for small businesses program. 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. Applications for the Canada Emergency Rent Subsidy CERS open Nov. 23, 2020. For the Canada Emergency Rent Subsidy (CERS), the maximum base rate subsidy would be 65 %, and available to organizations with a revenue drop of 70 % or more compared to a reference period. The Canada Emergency Rent Subsidy CERS base rate would then decline to a rate of 40 % for organizations with a revenue drop of 50 %, and then would gradually reduce to zero for those not experiencing a decline in revenues. Rents from April through September were subsidized under the CECRA program through the landlords. Certain news outlets are reporting that you might not actually start to receive the cash for the Canada Emergency Rent Subsidy CERS subsidy until sometime December. Qualifying Rent Expenses for Commercial Tenants o Gross rent. o Rent based on a percentage of sales, profit, or a similar criterion o Amounts required to be paid under a triple net lease as regular instalments of operating expenses, property taxes and ancillary services. o The qualifying rental amount must be reduced by amounts received from subletting the property. The following amounts are excluded from the calculation of qualifying rent: o Sales taxes (GST/HST/PST) o Amounts paid under a guarantee, security or covenant o Payments arising due to default under the agreement by the eligible entity o Interest and penalties on unpaid amounts o Fees payable for discrete items or special services o Common area maintenance reconciliation adjustment payments 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. The Canada Emergency Rent Subsidy CERS program will also provide for a top-up or “Lockdown Support” of 25% for businesses that must shut their doors or significantly limit their activities under a public health order. This would raise the maximum subsidy to 90% from 65% for the Canada emergency rent subsidy application. The Canada Emergency Rent Subsidy CERS application program has made improvements over the CECRA program, but it still has its shortfalls, this new program requires tenants to pay rent before being able to apply for CERS benefits which may be very difficult for tenants who do not have the cash flow to do so. How do I apply for Canada Emergency rent subsidy? If you are eligible for the subsidy, you will be required to apply to the CRA by no later than 180 days after the end of the applicable qualifying period. Disclaimer: This channel is for education purposes only and opinions expressed in this video are based on personal research and should be treated as such. These are not instructions, suggestions, nor directions as to how to handle your money. The facts and figures presented in this video are up-to-date based on the recording. These may have changed based on when you watch the video Please, always do your own due diligence! #CanadaEmergencyRentSubsidy #CanadaRentSubsidy #RentReliefCanada