The Canada Emergency Commercial Rent Assistance (CECRA) for small businesses provides relief for small businesses experiencing financial hardship due to COVID-19. The program gives forgivable loans to eligible commercial property owners so that they can reduce the rent owed by their impacted small business tenants by at least 75% for the months of April, May, and June 2020.
How does the CECRA for small businesses program work?
- Provides forgivable loans to qualified commercial property owners;
- Covers 50% of 3 monthly rent payments paid by eligible tenants (April, May, June);
- The loans will be forgiven if the property owner reduces tenants rent by at least 75% under a rent forgiveness agreement, which will include a term not to evict the tenant while the agreement is in place;
- Tenant pays the remaining 25% of the rent; and
- The deadline for qualified commercial property owners to apply is August 31, 2020.
Who qualifies as an eligible tenant?
- Businesses paying less than $50,000 per month in rent and who have temporarily ceased operations.
- Experienced at least 70% drop in pre-COVID revenues
How to apply:
It is expected that CECRA will be operational by mid-May, and further details will be announced soon.
For more information visit: https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business