Today the Prime Minister and Finance Minister provided details on the highly-anticipated Canada Emergency Commercial Rent Assistance (CECRA). In summary:
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- The federal government has reached an agreement with the provinces and territories to relieve 75% of the rental costs for hard hit small businesses, charities and non-profits for the months of April, May and June. Under the program, federal and provincial governments will cover 50% of rent, while the property owner will cover 25%, leaving 25% to be paid by tenants. The government portion will be cost shared, with the federal government bearing 75% of the cost of the program, while the remaining 25% of the program will be paid by the provinces.
- This program will be available in mid-May for small businesses, charities and non-profits who pay $50,000/month or less in rent, and who have seen at least a 70% drop in pre-COVID-19 revenues.
- Property owners will be provided forgivable loans to the amount of 50% of three monthly rent payments, through the Canada Mortgage and Housing Corporation (CMHC). This will be granted in exchange for the reduction of rent by 75% and a moratorium on evictions.
- A separate program for larger businesses will be announced in the coming days.
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The news release for this announcement can be found here. More details around eligibility and measures to help edge cases will emerge in the coming week.
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Our federal team is standing by to answer your questions:
Sheamus Murphy
613 323 7607
Bridget Howe
613 797 8058
Ben Parsons
613 323 5226