Bill C-9 : a welcome help for hotels

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Montreal centre-ville

On November 10, 2020 the Hotel Association of Greater Montréal (AHGM) has seen its demands for the hotel industry resonate with the federal governement.

The Bill C-9

Fixed costs, which are a huge financial burden for hotels, will now be partially covered through the Canada Emergency Rent Subsidy.

Indeed, the Canada Emergency Rent Subsidy will provide direct support to owners and tenants that are the most affected by the pandemic context. This subsidy will provide support to 65% of eligible expenses, for a maximum of $75,000 per establishment and $300,000 per business group. These fees include school and municipal taxes, property insurance and interests on commercial mortgages.

In addition, additional assistance covering 90% eligible expenses of $75,000 is available to businesses affected by a public health decree. For example, with the ban on gatherings, which does not allow hosting business and social meetings as well as operating as a catering component, some companies could request this additional help. To be eligible, however, the company will have to demonstrate that the portion of the activities affected, represented at least 25% of revenues before the pandemic.

For more details regarding the Canada Emergency Rent Subsidy, please consult the following document provided by the Department of Finance Canada.