With the end of the CEWS and CERS on October 23, 2021, the Government of Canada has announced the Hardest-Hit Business Recovery Program to help support impacted businesses and organizations.

The HBRP will provide rent and wage subsidies to organizations that have been deeply affected since the outset of the pandemic, and that do not qualify for the Tourism and Hospitality Recovery Program (THRP).

Who is eligible?

Eligible organizations are required to meet both of the following two conditions to qualify:

1) An average monthly revenue reduction of at least 50% over the first 13 qualifying periods for the Canada Emergency Wage Subsidy (ie. a 12-month revenue decline), and

2) A current-month revenue loss of at least 50%.

  • The 12-month revenue decline would be calculated as, the average of all revenue decline percentages from March 2020 to February 2021 (claim periods 1-13, excluding claim period 10 or 11).
  • Any periods in which an entity was not carrying on its ordinary operations for reasons other than a public health restriction (ex. because it is a seasonal business) would be excluded from this calculation.
  • The existing rules would continue to apply for the purposes of calculating the current-month revenue decline.

Specifics on the CEWS qualifying periods can be found here.

How much is the subsidy?

The maximum subsidy rate for the wage and rent subsidies would be set at 50% from October 24, 2021 to March 12, 2022 (claim periods 22 to 26).

  • The wage and rent subsidy rates would continue to be calculated based on current-month revenue losses compared to those of a prior reference period.
  • The subsidy rates would start at 10% for eligible organizations with a 50% current-month revenue decline.
  • The subsidy then increases in proportion to current-month revenue loss up to a maximum rate of 50% (for those with a current-month revenue decline of 75% or higher).
  • The rent and subsidy rates would be reduced by half from March 13, 2022 to May 7, 2022 (claim periods 27 and 28).
Current-month revenue decline Periods 22-26 (October 24, 2021 – March 12, 2022) Periods 27-28 (March 13 – May 7, 2022)
75% and over 50% 25%
50-74% 10% + (Revenue Decline - 50%) x 1.6 (ex. 60% Decline - 50% = 10% x 1.6 = 16 + 10% = 26% Subsidy) 5% + (Revenue Decline - 50%) x 0.8 (ex. 60% Decline - 50% = 10% x 0.8 = 8 + 5% = 13% Subsidy)
0-49% 0% (not eligible) 0% (not eligible)

How long is the subsidy available for?

The initial announcement only covered support until November 20, 2021. However, the government is proposing to introduce legislation as soon as possible to extend these programs until May 7, 2022, with authority for further amendments through regulations until July 2, 2022.

How do I apply?

Applications are not currently open. Application details have not yet been finalized or published by the government, but they are expected to be released in the upcoming weeks.

We will publish updates here and on our social media channels (Facebook, Twitter, LinkedIn) at that time.

Have questions?

If you have any questions about the Hardest-Hit Business Recovery Program, please contact one of our Small Business experts or complete the contact form below.

Heather Schwab

Heather Schwab

Service Expertise: Valuations , Estate Planning , Tax
Industry Expertise: Small Business , Agriculture , Retail

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