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Canada Emergency Commercial Rent Assistance (CECRA)

CECRA provides much needed relief for small businesses


SB Partners Admin on May 5, 2020 in COVID19

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.

Or

  • 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