Feds offer more than rent relief

OTTAWA — Following the Hotel Association of Canada’s advocacy work, what originally started as simply a rent relief program, has now evolved to cover property owners and a number of their fixed costs as well. This will significantly help the majority of our hotels and will deliver non-repayable relief to hotels in the hundreds of millions of dollars.

The new program will include:

• Mortgage interest support to property owners until June 2021 (up to a maximum of 65% of eligible expenses has been confirmed until December 19, 2020. Future parameters in 2021 will be adapted and targeted as needed). Claims would be allowed retroactive to September 27, 2020.
• Support for additional fixed costs including insurance, property tax, school tax and other municipal taxes.

The subsidy will be provided based on a percentage of revenue loss. The maximum base rate subsidy of 65 per cent will be available to those with a revenue drop of 70 per cent or more, which will then decline based on a sliding scale. Expenses for each qualifying period are capped at $75,000 per location and will be subject to an overall cap for affiliated entities.

For more information go to: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-rent-subsidy.html