Government of Canada – Tourism and Hospitality Recovery Program (THRP) and Local Lockdown Program

ByMaurice

Description:

The Tourism and Hospitality Recovery Program (THRP) provides targeted wage and rent support for eligible businesses, charities, and non-profits in the tourism or hospitality sector or those affected by a qualifying public health restriction.

The Local Lockdown Program is a way businesses, charities, and non-profits affected by a qualifying public health restriction can be eligible for wage and rent support through the Tourism and Hospitality Recovery Program (THRP).

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.
  • registered charities;
  • partnerships where all members are eligible employers;
  • the following prescribed organizations:
  • 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.

If your business activities are significantly affected by a qualifying public health restriction, you may be eligible for support through the THRP even if you are not a qualifying tourism or hospitality entity.

Additional THRP ELIGIBILITY CRITERIA:

There are two ways eligible organizations can qualify for the THRP:

  1. Tourism and hospitality sector meeting the following three conditions:
  • More than 50% of their revenue comes from one or more of the tourism, hospitality, arts, entertainment, or recreation activities this program supports.
  • They have a 12-month average revenue drop from March 2020 to February 2021 of at least 40%.
  • They have a claim period revenue drop of at least 40%. OR
  1. Organizations affected by a qualifying public health restriction regardless of sector meeting the following two conditions:
  • They were affected by a qualifying public health restriction.
  • They have a claim period revenue drop of at least 40%.

Applications Steps:

2

The THRP and the HHBRP also include a rent subsidy. If applicants are eligible to apply for both a wage subsidy and a rent subsidy, they must apply for them separately.

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    Other Things to Note:

    As a business, charity, or non-profit in Canada that has been affected by the COVID-19 pandemic, you may be eligible for one or more subsidies to cover part of your wage and rent expenses.

    Starting on October 24, 2021, you may qualify for wage support through the:

    • Tourism and Hospitality Recovery Program (THRP);
    • Hardest-Hit Business Recovery Program (HHBRP); or the
    • Canada Recovery Hiring Program (CRHP). If you are eligible for both the CRHP and one of the other wage subsidies, apply for the subsidy that gives you the higher amount.

    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

    About the author

    Maurice

    Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Ontario to identify and maximize government grants to grow their business. Click here to learn more about Moe’s background and how he can help your business.

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