Canada Emergency Commercial Rent Assistance Program (CECRA)
- Commercial property owners are being offered forgivable loans to cover 50% of three month rent payments.
- The loans will be forgiven only if the property owner agrees to reduce rent by at least 75 per cent for April, May and June.
- Landlords will absorb 25% of rent, the government and provinces will pay 50% and the tenant will pay 25%.
- CECRA will likely be operational by mid-May, with commercial property owners lowering the rents of their eligible tenants for the months of April and May retroactively, and for June
- The rent relief is based on the base rent and not net or total rent cost, which for some small businesses will still be a sizable bill to pay monthly.
- Property owners are prohibited from evicting the tenant while the agreement is in place.
Who is eligible
Tenants who paid less than $50,000 per month in rent, have had to temporarily cease operations, or have experienced at least a 70% drop in pre-COVID-19 revenues.
This program is also made available to non-profits and charities.
The intention is to have commercial property owners lower rents for their tenants now and be paid retroactively for April, May and June.
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