Support for Hotels 

Federal COVID-19 Business Support Programs 

Tourism & Hospitality Recovery Program (THRP)

  • The THRP is a dedicated support program for the Tourism and Hospitality businesses.

  • The THRP provides support through wage and rent subsidies of up to 75%.

  • The THRP replaces the CEWS and CERS programs. As a reminder, CEWS and CERS programs ended on October 23rd, 2021, and the THRP applies retroactively to the 23rd of October.
     

Eligibility:

  • The Government has provided a list of businesses that are considered tourism, hospitality and event businesses. The list can be found by clicking here.

  • To be eligible for the program, a business must meet the requirements to be considered a tourism, hospitality and event business and experience the following revenue reductions:

    • An average monthly revenue reduction of at least 40 percent over the first 13 qualifying periods for the Canada Emergency Wage Subsidy (12-month revenue decline); and

    • A current-month revenue loss of at least 40 percent.
       

More information about eligibility can be found here.

Program ends May 7th 2022 and will decrease by half starting March 13th 2022.

Hardest-Hit Business Recovery Program (HHBRP)

  • The HHBRP provides support through wage and rent subsidies to businesses that have faced deep revenue losses.

  • The HHBRP provides support through the wage and rent subsidies of up to 50 percent.

  • The HHBRP replaces the CEWS and CERS programs.

  • As a reminder, CEWS and CERS programs ended on October 23rd, 2021, and the THRP applies retroactively to the 23rd of October.
     

Eligibility:

  • There is no requirement to be in a certain sector for the HHBRP (unlike the THRP).

  • To qualify for the HHBRP, you must meet the following two conditions:

  • You have a 12-month average revenue drop from March 2020 to February 2021 of at least 50 percent.

  • You have a claim period revenue drop of at least 50 percent.

 

More information about eligibility can be found here.

Program ends May 7th 2022 and will decrease by half starting March 13th 2022.

Highly Affected Sectors Credit Availability Program (HASCAP)

The Highly Affected Sectors Credit Availability Program provides loans to businesses hardest hit by the pandemic. HASCAP provides:

  •  100% net loss government guarantee

  • Loan amount between $25,000 and $1 million per legal entity

  • Maximum combined exposure of related legal entities of $6.25 million

  • Loan proceeds cannot be used to pay down an existing debt/lease facility

  • Up to 10-year repayment term

  • 4% fixed interest rate

  • Up to 12-month postponement of principal repayments at the start of the loan

  • No personal guarantees

Eligibility:

An applicant business must:

  • An applicant business must:

    • Be a commercial enterprise whose intent is to generate revenue from the sale of goods or services that is at least sufficient to cover its operating expenses and service its debt.

    • Have been financially stable and viable prior to the current economic environment.

    • Not have an impaired loan as of March 1, 2020, or the eligible loan closing date.

    • Other eligibility requirements may apply
       

Hoteliers must fall into one of the following categories:

  • If your hotel has received the Canada Emergency Wage Subsidy (CEWS) or the Canada Emergency Rent Subsidy (CERS)

    • You must provide Canada Revenue Agency attestation forms demonstrating a minimum 50% revenue decline, for at least 3 months, within the 8-month period prior to the date of your HASCAP application.

    • Your hotel must have received CEWS or CERS, or be receiving THRP, HHBRP, or CRHP.

  • If your hotel does not qualify for these support programs:

    • You must provide financial statements that reflect at least three months (which do not need to be consecutive) of monthly year-over-year revenue decrease of a minimum of 50% per month, within the 8-month period prior to the date of your HASCAP application.

    • Your financial institution will require the above information to process your request.

Timelines and How to Apply:

  • As a first step, you must contact your primary financial institution to get more information and to apply.

    • You can only apply to one financial institution – your primary lender.

    • If your primary lender is not participating in the program, only then may you apply via another financial institution.

  • The program will be available until March 31, 2022.

Canada Recovery Hiring Program (CRHP)

Details:

  • The CRHP provides support to enable employers to hire additional staff or cover increases in payroll costs.

  • The CRHP would provide a subsidy of up to 50% of incremental remuneration (increases in payroll costs) to eligible employees.
     

Eligibility:

Canada Emergency Wage Subsidy (CEWS)

  • The CEWS program was a lifeline for many businesses in our industry. It provided a subsidy for employers to continue paying employee wages.

  • As of October 24, 2021 the CEWS program was replaced by two other programs:

    • The Tourism and Hospitality Recovery Program

    • The Hardest-Hit Business Recovery Program
      Please see the descriptions of these programs below.

Eligibility:

  • To be eligible for CEWS, businesses must have a CRA payroll account on March 15, 2020 and have experienced a drop in revenue.

  • Further details regarding eligibility can be accessed here.

  • If you were eligible for the CEWS, you can still apply for past claim periods until 180 days after the claim period has ended. Hoteliers can apply for CEWS directly on CRA’s website.

Canada Emergency Rent Subsidy  (CERS)

  • The CERS program was a lifeline for many businesses in our industry. It provided a subsidy for employers to continue paying employee wages.

  • As of October 24, 2021 the CERS program was replaced by two other programs:

    • The Tourism and Hospitality Recovery Program

    • The Hardest-Hit Business Recovery Program
      Please see the descriptions of these programs below.

Eligibility:

  • To be eligible for CERS, businesses must have a CRA payroll account on March 15, 2020 and have experienced a drop in revenue.

  • Further details regarding eligibility can be accessed here.

  • If you were eligible for the CERS, you can still apply for past claim periods until 180 days after the claim period has ended. Hoteliers can apply for CEWS directly on CRA’s website.

Canada Emergency Businesses Account (CEBA)

Details:

  • CEBA provided interest-free loans of up to $60,000 to small businesses and not-for-profits.

  • Repaying the balance of the loan on or before December 31, 2023 will result in loan forgiveness of 33 percent (up to $20,000).

 

CEBA is now closed. 

Regional Recovery and Relief Program (RRRF)

  • The RRRF was a flexible, interest free loan program with forgivable relief administered by the Regional Development Agencies (RDA) across Canada.

  • Government has extended  the repayment deadline to qualify for partial forgiveness for CEBA-equivalent lending through the RRRF to December 31, 2023.

RRRF is now closed.

Last updated:  January 31, 2022