Commercial Rent Assistance application forms now available; eligibility expanded
Application documents and updated criteria for Canada Emergency Commercial Rent Assistance (CECRA) for small businesses are now available, and that the program will be opened for applications beginning on May 25.
The program will provide forgivable loans to eligible commercial property owners, who in turn will give a rent reduction of at least 75 per cent for April and May (retroactive), and June, to their small business tenants. Program eligibility has been expanded to include properties with and without mortgages.
Applications will be accepted through the Canada Mortgage and Housing Corporation website beginning on May 25, and application documents can be accessed now.
Overview of CECRA
- CECRA will provide forgivable loans to qualifying commercial property owners, whether they have a mortgage on their property or not. The loans will cover 50 per cent 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 qualifying property owner agrees to reduce the small business tenants’ rent by at least 75 per cent under a rent reduction 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 per cent of the rent.
- Impacted small business tenants are businesses that are paying less than $50,000 per month in gross rent in a given location, with annual revenues of less than $20 million (at the ultimate parent level), and who have experienced at least a 70 per cent drop in pre-COVID-19 revenues.
Good news! Canada Emergency Commercial Rent Assistance application forms now available and eligibility has been expanded.- The program provides forgivable loans to property owners that give a 75% rent reduction to their eligible small business tenants.- Eligibility expanded to include properties with or without a mortgage- Impacted small businesses tenants are those that pay less than $50,000/month in gross rent and have experienced at least a 70% drop in revenues due to COVID-19More details and links to the application forms at www.tbchamber.ca/covid19
Posted by Thunder Bay Chamber of Commerce on Thursday, May 21, 2020