* This article was updated on November 25, 2020.
Please note that the CECRA program has ended and has been replaced by the new Canada Emergency Rent Subsidy.
To provide rent relief to small businesses affected by the COVID-19 pandemic, the federal government introduced the Canada Emergency Commercial Rent Assistance (CECRA) program earlier this year.
The CECRA program has now been extended by one month to cover rent in September. Applications for April, May and June will also be reopened together with extensions for July, August and September.
The deadline to submit a new application and opt-in for the July and August extension is September 30, 2020. Details about the September extension application will be available soon on the CECRA website.
Existing applicants will have to reapply for September. New applicants will get to choose whether they’d like to apply for the three-month initial period, four months, five months or six months.
The CECRA program was created in collaboration with the provincial and territorial governments. The program reduces monthly rent by 75% for small businesses experiencing financial losses due to the COVID-19 crisis.
Eligible commercial property owners can apply to this program through the Canada Mortgage and Housing Corporation website.
How does CECRA work?
CECRA provides forgivable loans to eligible commercial property owners to cover 50% of the monthly rent to be paid by eligible small businesses tenants for months of April, May, June, July, August and September.
The government will excuse the loans if the property owner reduces the small business tenants’ rent by at least 75% under a rent forgiveness agreement. The agreement will include a moratorium on eviction. The small business tenant would pay the remaining 25%.
Of the 75% forgiven, the federal and provincial governments would take on 50% of the rent, while the property owner would be responsible for covering the remaining 25%.
Who are the small businesses that qualify?
Small businesses paying less than $50,000 per month in rent, and who have closed operations for the time being or suffered at least a 70% drop in pre-COVID revenues, qualify for this program.
When will CECRA be operational?
The Canada Emergency Commercial Rent Assistance program opened for applications from May 25, 2020. Eligible commercial property owners can apply to this program through the Canada Mortgage and Housing Corporation website.
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