2020 Ontario Budget:
On November 5th, 2020, Rod Phillips, Ontario’s Minister of Finance, presented the province’s budget. Please find our summary of the budget here.
Other Government Support:
Further to our last newsletter regarding the increase from $40,000 to $60,000, the government had updated their position and you are now permitted to apply if you were not operating your business from an active business banking account. However, you must now open a business banking account before the CEBA application. There have been no further updates to the application process for the additional loan amount, we will provide more information as it becomes available.
The CRA has confirmed that the forgivable portion is taxable in the year of receipt, even though there are conditions to be met (i.e. repaid by December 31, 2022). They will be releasing a technical bulletin shortly to provide further details.
Canada Emergency Rent Support (CERS):
On November 2, 2020, Bill C-9 was introduced to amend legislations regarding CEWS and CERS. Under the proposed Bill C-9, CERS applications are due by the later of January 31, 2021, and 180 days after the end of the qualifying period. The first qualifying period ended October 24, 2020. Up to $75,000 per period in rent, mortgage interest, insurance and property taxes paid by commercial property owners can be partially subsidized.
Bill C-9 is expected to go into Senate readings in the coming week, we will provide more information as it becomes available.