Government of Canada – Hardest-Hit Business Recovery Program (HHBRP)

Description:

The Hardest-Hit Business Recovery Program (HHBRP) provides targeted wage and rent support for hard-hit eligible businesses, charities, and non-profits outside of tourism or hospitality that have been deeply affected since the start of the pandemic.

Comments on Funding:

Funding is a wage or hiring subsidy.

Eligibility:

To be eligible for a wage or hiring subsidy, applicants must meet:

  •  two general eligibility criteria that relate to all subsidies;
  • additional requirements that are specific to the subsidy they are applying for, and
  • revenue drop requirements for the subsidy they are applying for;

Applicants may only apply for one wage or hiring subsidy per claim period, even if they are eligible for more than one.

Applicants must meet both of these criteria to be eligible for any subsidy:

I. had a CRA payroll account on March 15, 2020. Even if they didn’t have a payroll account on March 15, they may still qualify if:

  • another person or partnership made remittances on their behalf, or
  • they purchased all (or almost all) of another person’s or partnership’s business assets.

II. be one of the following types of employers:

  • individuals (such as sole proprietors);
  • corporations (or trusts) that are not exempt from income tax under Part I of the Income Tax Act. Note: Publicly traded companies or their subsidiaries are not entitled to any wage subsidy for a claim period in which they paid taxable dividends to an individual who is a holder of common shares of the company or of the subsidiary of the company.
  • the following persons that are exempt from income tax under Part I of the Income Tax Act :
  • non-profit organizations;
  • agricultural organizations;
  • boards of trade;
  • chambers of commerce;
  • non-profit corporations for scientific research and experimental development;
  • labour organizations or societies;
  • benevolent or fraternal benefit societies or orders. 
  • individuals (such as sole proprietors);
  • corporations (or trusts) that are not exempt from income tax under Part I of the Income Tax Act. Note: Publicly traded companies or their subsidiaries are not entitled to any wage subsidy for a claim period in which they paid taxable dividends to an individual who is a holder of common shares of the company or of the subsidiary of the company.
  • the following persons that are exempt from income tax under Part I of the Income Tax Act :
  • certain Indigenous government-owned corporations that carry on a business;
  • partnerships consisting of eligible employers and certain Indigenous governments;
  • registered Canadian amateur athletic associations;
  • registered journalism organizations;
  • private schools or private colleges, and
  • partnerships where at least 50% of the fair market value of all interests in the partnership are held by eligible employers throughout the claim period.

Public institutions are not eligible for the subsidies. This includes municipalities and local governments, Crown corporations, public universities, colleges and schools, and hospitals.

Additional HHBRP ELIGIBILITY CRITERIA:

  •  Eligible organizations, regardless of their business sector, may qualify for the HHBRP if they don’t qualify for the THRP.
  • To qualify for the HHBRP, they must meet the following two conditions:
  • They have a 12-month average revenue drop from March 2020 to February 2021 of at least 50%.
  • They have a claim period revenue drop of at least 50%.

Other Things to Note:

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    Many of the eligibility and calculation rules for the wage subsidy under the THRP and the HHBRP are the same as they were for the CEWS.
    Effective: October 24, 2021, to May 7, 2022

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