Emergency Commercial Rent Relief Extended Through July

Jamie Grossman
Jamie Grossman

As Managing Principal of Cresa Toronto for the last 15+ years, Jamie has grown the firm to become one of Canada’s largest occupier-focused commercial real estate companies.

See other blogs by Jamie Grossman

The Canadian Emergency Commercial Rent Assistance Program (CECRA), which provides forgivable loans to eligible commercial property owners experiencing potential rent shortfalls due to COVID-19, for the months of April and May and June, has now been extended through July.

 

Only Landlords can apply for CECRA through an online portal, until August 31, 2020.

 

Eligible property owners must offer a minimum of a 75% rent reduction for the months of April – July 2020 and will be provided forgivable loans worth 50% of the value of the small business’ rent each month. To apply, the Landlord must include several pieces of information, attestations and agreements including a Rent Reduction Agreement, Forgivable Loan Agreement.

 

Eligible small businesses pay no more than $50,000 in monthly gross rent per location, generate no more than $20M in gross annual revenue and have experienced at least a 70% decline in pre COVID-19 revenues.

 

Only those tenants approved in the April, May and June application are eligible for the July extension.

 

Key details of the program: 

 

•The program will provide forgivable loans to qualifying commercial property owners to cover 50% of the rent payments for April, May, June and July for eligible small business tenants who are experiencing financial hardship.
•
•The loans will be forgiven if the mortgaged property owner agrees to reduce the rent of eligible small business tenants by at least 75% for the three corresponding months under a rent forgiveness agreement. The agreement will include a term not to evict the Tenant while the agreement is in place.

 

•Small business tenants paying less than $50,000 per month in rent and who have temporarily ceased operations or have experienced at least a 70% drop in pre-COVID-19 revenues are eligible for the program. This support will also be available to non-profit and charitable organizations.

Related

posts

See all