Update (week of September 8, 2020): The Government announced that it is extending the CECRA by another month to help small businesses pay rent for September. Application has also been extended to accomodate this extension.
- What is the Canada Emergency Commercial Rent Assistance (CECRA)? The CECRA is a program for small businesses affected by the COVID 19 pandemic. This program will lower rent paid by these small businesses by 75%.
- Who are eligible? As mentioned, the CECRA is for small businesses affected by COVID 19. These small businesses will be eligible if they are paying less than $50,000 per month in rent and have temporarily ceased operations or have experienced at least 70% drop in pre-COVID revenues. This program will also available to non-profit and charitable organizations.
- How does this program work? First, forgivable loans will be provided through this program to qualifying commercial property owners to cover 50% of 3 monthly rent payments payable by eligible small business tenants who are financial struggling during April, May, June and July (program was extended by 1 month to cover July rent). The loans will then be forgiven if the mortgaged property owner agrees to reduce the small business tenants’ rent by at least 75% under a rent forgiveness agreement. The agreement must include a term that the tenant will not be evicted. The remainder of the rent, up to 25%, will then be covered by the small business tenant.
- When will this program start? The CECRA will be open for applications starting May 25, 2020.
- How can you apply? Applications will be accepted through the Canada Mortgage and Housing Corporation website. More details here: CMHC Website
Source: https://www.canada.ca/en/department-finance/economic-response-plan.html
