This will depend on if the two companies are part of a commonly owned group.
The definition can be found here (link to above FAQ “How do you define a commonly-owned group for RSP application purposes?)
Scenario One: If the two companies are part of a commonly owned group
The two companies would’ve had to experience a collective reduction in revenue of 30% or more.
- Company One would calculate their revenue for the 7-day affected revenue period and 7-day comparative period.
- Company Two would calculate their revenue for the 7-day affected revenue period and 7-day comparative period.
- Company Once & Two must use the same date ranges for the affected and comparative revenue periods.
- If the collective revenue for Company Once & Two in the affected revenue period, has declined by 30% or more than their collective revenue in the comparative period, then they may be eligible to apply for the RSP.
If they have collectively had a reduction in revenue of 30% or more, any company can apply for the RSP, provided that the individual company has also experienced a reduction in revenue of at least 30%.
i.e., The group has suffered a 30% decline in revenue AND the individual company has suffered a 30% decline in revenue.
Even if the individual company has suffered a 30% decline in revenue, if the group has not suffered a 30% reduction in revenue, they will not be eligible for the RSP.
Scenario Two: If the two companies are not part of a commonly owned group
The company with the decline in revenue of 30%, will be eligible for the RSP, provided they meet all the other criteria.
The company which did not suffer a reduction in revenue, will not be eligible.