Canada Emergency Commercial Rent Assistance (CECRA) for small businesses will be extended by one month
Today, the Deputy Prime Minister Chrystia Freeland, and Minister Mary Ng, announced that Canada Emergency Commercial Rent Assistance (CECRA) for small businesses will be extended by one month to help eligible small businesses pay rent for September.
“Across Canada, small businesses are working hard to grapple with this crisis so they can serve their communities and provide jobs. Our government recognizes that while small businesses’ needs are evolving, many still require support to face the challenges of the COVID-19 pandemic. That is why we are extending the rent relief provided through CECRA by an additional month, to ensure that Canadian businesses hit hardest by COVID-19 get support when they need it most.”– The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
The loans cover 50 per cent of three to six monthly rent payments for eligible small business tenants during April, May, June, July, August and September.
The loans will be forgiven if the qualifying property owner agrees to reduce their 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.
“As we work to safely reopen our economy, our government understands that things are still tough for our small business owners and that rent remains a major expense. That’s why we are extending the Canada Emergency Commercial Rent Assistance by one month to include September. We will continue to be there for our small business owners as we rebuild.”– The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade
Eligible 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 experienced at least a 70 per cent drop in pre-COVID-19 revenues on average for the period of April, May and June.
As many business continue to struggle with loss of revenue brought on the by the coronavirus, the extension of the rent relief to small businesses is a welcomed news to those on the brinks of foreclosure.