Prime Minister Justin Trudeau announced that the Federal Government has reached an agreement in principle with all provinces and territories to implement the Canadian Emergency Commercial Rent Assistance (CECRA) for small business.
This program will lower rent by 75% for small businesses that have been affected by COVID -19.
Business paying less than $50,000 per month in rent and who have temporarily ceased operations..
Businesses who have experienced at least a 70% drop in pre-COVID-19 revenues. This support will also be available to non-profit and charitable organizations.
The Prime Minister also stated that support for larger businesses will be announced in the coming days,
How it Works:
The program will provide forgivable loans to qualifying commercial property owners to cover 50% of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May and June.
The loans will be forgiven if the mortgaged property owner agrees to reduce the eligible small business tenants’ rent by at least 75% for the three corresponding months under a rent forgiveness agreement, which will include a term not to evict the tenant while the agreement is in place. The small business tenant would cover the remainder up to 25%
It is expected that CECRA will be operational by mid-May with commercial property owners lowering the rents of their small business tenant’s payable for the months of April and May retroactively and for June.
Further details on .CECRA will be shared in the near future once final terms and conditions are available.
AARO Executive Director