Canada Emergency Commercial Rent Benefit
Friday, April 24, 2020
The Canada Emergency Commercial Rent Assistance for small businesses will provide forgivable loans to qualifying commercial property owners to cover 50 per cent of three monthly rent payments payable by eligible small business tenants experiencing financial hardship during April, May, and June. The federal Canada Mortgage and Housing Corp. will administer and deliver the program.
The loans will be forgiven if the mortgaged property owner agrees to reduce the eligible small business tenants’ rent by at least 75 per cent for the three corresponding months under a rent forgiveness agreement, which will include a pledge 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.
Who is eligible:
- Affected small business tenants are those paying less than $50,000 per month in rent and
- who have temporarily ceased operations, or have experienced at least a 70-per-cent drop in pre-COVID-19 revenues.
When will Canada Emergency Commercial Rent Assistance Program be available
It is expected the new program 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. I will provide more information as it is released.