The federal government announced on April 24, it has reached an agreement with all provinces and territories to implement the Canada Emergency Commercial Rent Assistance for small businesses. The program is aimed to reduce rent by 75% for small businesses that have been affected by COVID-19. This is targeted to small businesses paying less than $50,000 in rent per month, and who have temporarily ceased operations or have experienced at least a 70% drop in pre-COVID revenues. This is also available to non-profit and charitable organizations.
The program is aimed to provide eligible small business tenants who are experiencing financial hardship during April, May, and June with forgivable loans to qualifying commercial property owners to cover 50% of 3 monthly rent payments that are payable.
If the mortgaged property owner agrees to reduce the small business tenants’ rent by at least 75% under the forgiveness agreement, which would include a term not to evict the tenant for the duration of the agreement, the loan will be forgiven. The landlord covers 25% and the remaining 25% of the rent is covered by the small business tenant.
For more information about the program please click here.
Applications start on May 25, 2020, at 8:00 AM, and are being staggered accordingly:
You can click here to start the application process.
The Canada Mortgage and Housing Corporation (CMHC) is encouraging all eligible commercial property owners to participate in the program to help businesses manage during the current pandemic.
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