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Writer's pictureDimitry Skupchenko

Canada Emergency Commercial Rent Assistance (CECRA)

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


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