The federal government announced an agreement in with all provinces and territories to implement the CECRA. This measure will lower rent by 75% for small businesses, as well as non-profit and charitable organizations impacted by COVID-19.
Eligible entities are those that are paying less than $50,000 in monthly rent, and have: o Temporarily ceased operations, or Experienced at least a 70% drop in pre-COVID-19 revenues.
The program will provide forgivable loans to qualifying commercial property owners to cover 50% of three monthly rent payments (April, May and June), if the owner agrees to reduce eligible tenants’ rent by at least 75% for that period under a rent forgiveness agreement. A rent forgiveness agreement must include a term not to evict the tenant while the agreement is in place.
Pursuant to this program, the tenant would be responsible for covering 25%, the property owner 25%, and the federal government and provinces would share the remaining 50%.
The Canada Mortgage and Housing Corporation will administer and deliver the CECRA. More details can be found here. https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business