Zafar B. Jaffer
Partner
Article
8
On December 8, 2020, the Alberta Government introduced mandatory expanded public health measures (the "New Restrictions") to respond to the increasing surge of COVID-19 cases in Alberta. The New Restrictions expand the public health measures and state of emergency declared by the Alberta Government on November 24, 2020, and are in effect province wide. The following summarizes the New Restrictions to assist businesses in understanding any New Restrictions applicable to them.
The following businesses and services will need to abide by the following restrictions on the noted dates:
With the introduction of the New Restrictions, the Alberta Government also announced the expansion of the Small and Medium Enterprise Relaunch Grant (the "Grant Program"). Eligible organizations who have experienced a 30% revenue loss due to the COVID-19 pandemic will qualify for the Grant Program. This adjusts the qualification from the previous 40% revenue loss requirement under the Grant Program. This 30% threshold will be applicable to business impacted by the pandemic retroactive to March. Businesses that meet the eligibility criteria of the Grant Program will be able to apply for 15% of their pre-COVID-19 monthly revenue for up to a maximum of $5,000 in funding. In addition, businesses that are affected by the public health orders in effect from November 6, 2020 and later will also be eligible to apply for a second payment of up to 15% of the pre-COVID-19 monthly revenue up to a maximum of $15,000 through the Grant Program.
On November 19, 2020, in response to the continued uncertainty and economic challenges faced by Canadian businesses due to the COVID-19 pandemic, the Government of Canada introduced a series of new, targeted supports to help businesses. Bill C-9, An Act to Amend the Income Tax Act (Emergency Rent Subsidy and Canada Emergency Wage Subsidy) ("Bill C-9") introduced the new Canada Emergency Rent Subsidy ("CERS"). CERS will provide direct payments to eligible businesses for commercial rent or property expenses. Eligible business will receive up to a maximum of 65% of eligible expenses until December 19, 2020 and claims can be made retroactively to September 27, 2020.
Bill C-9 also created the new Lockdown Support, which will provide an additional 25% through CERS for qualifying organizations that must close down or restrict their activities under a public health order issued under the laws of Canada, a province or territory (including orders made by a municipal or regional health authority). Bill C-9 also extended the Canada Emergency Wage Subsidy ("CEWS") program to June 2021.
With the New Restrictions and the rising number of COVID-19 cases across Alberta, we expect that many businesses may experience economic challenges and could be able to take advantage of certain federal and provincial support programs recently introduced, as outlined above. We welcome you to contact us with respect to any questions you may have regarding the funding supports available to assist your businesses through these unprecedented times.
We will continue to provide regular updates with respect to the Alberta Government's response to the COVID-19 pandemic as additional information becomes available.
We invite you to contact a member of Gowling WLG's Alberta Essential Services Team, Zafar B. Jaffer and/or Krista Schofer, if you have questions regarding the New Restrictions and how such restrictions may impact your business.
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