Today the Prime Minister and Finance Minister provided details on the highly-anticipated Canada Emergency Commercial Rent Assistance (CECRA). In summary:
- 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.
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.
Our federal team is standing by to answer your questions:
613 323 7607
613 797 8058
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