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Client Communication:

Canada Emergency Commercial Rent Assistance (CECRA)

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May 21, 2020

Application open May 25, 2020.

We aren’t in June yet — should I wait to apply? 

No, you must apply for all 3 months at the same time and all impacted tenants must be included on a single application.

Your tenant can use forecasts for the month of June. The eligibility on the 70% factor will be determined on the average of April, May and then, forecasting June revenues.


May 19, 2020

This program will lower rent by 75% for small businesses that have been affected by COVID-19.
CMHC will provide forgivable loans to eligible commercial property owners.
• The loans will cover 50% of the gross rent owed by impacted small business tenants during the 3-month period of April, May and June 2020.
• The property owner will be responsible for no less than half of the remaining 50% of the gross rent payments (paying no less than 25% of the total).
• The small business tenant will be responsible for no more than half of the remaining 50% of the gross rent payments (paying no more than 25% of the total).

Am I eligible?
Tenants: Contact your landlord

Landlords: To qualify for CECRA for small businesses, the property owner must meet the following requirements:

  • own commercial real property occupied by one or more impacted small business tenants
  • entered into a lease with the eligible tenant on or before April 1, 2020
  • entered or will enter into a rent reduction agreement for the period of April, May, and June 2020, that will reduce impacted small business tenant’s rent by at least 75%. Ensure rent reduction agreement with impacted tenants includes:
  • a moratorium on eviction for the period during which the property owner agrees to apply the loan proceeds, and
  • a declaration of rental revenue included in the attestation Property owners with or without mortgages are eligible to apply.

What is an impacted small business tenant?
Impacted small business tenants are businesses, including non-profit and charitable organizations who:

  • pay no more than $50,000 in monthly gross rent per location (as defined by a valid and enforceable lease agreement),
  • generate no more than $20 million in gross annual revenues, calculated on a consolidated basis (at the ultimate parent level), and have experienced at least a 70% decline in pre-COVID-19 revenues Eligible small business tenants who are in sub-tenancy arrangements are eligible To measure revenue loss, small businesses can compare revenues in April, May and June of 2020 to that of the same month of 2019. They can also use an average of their revenues earned in January and February of 2020.

How do I apply?
Application portal to open later this month

What will you need for your application?

  1. Attestations:
    a. Tenant or Sub-tenant Attestation – Click Here for Sample
    Each eligible tenant must attest to the meeting the program criteria (see What is an impacted small business tenant).

    b. Property Owner’s Attestation – Click Here for Sample
    Property Owner tenant must attest to the meeting the program criteria (see Am I Eligible?).

  2. Agreements:
    a. Rent Reduction Agreement – Click Here for Sample
    Agreement with the eligible tenant to confirm rent reduction based on the program criteria.

    b. Forgivable Loan Agreement Property owner must agree to the terms and conditions outlined here.

  1. Other Information:
    a. Property information: Property address, Property type, Property tax statement and latest rent roll and number of commercial units
    b. Applicant information: Banking information and Contact details
    c. Tenant information: Tenant contact information, Registered business name, Leased area and monthly gross rent for the period April, May, June 2020

What’s the deadline?
The deadline to apply is August 31, 2020.

Can a property owner whose small business is the only tenant apply?
YES, landlords and tenants who are not at arm’s length will be included in the program as long as there was a valid and enforceable lease agreement in place as at April 1, 2020 and the rent under the lease is at market rates.

How can the property owner use the CECRA funds?
In order of priority, funds can be used for:

  1. Reimbursing the tenant for any rent paid above the 25% during the eligible period unless the tenant chooses to apply the previously paid rent against future rent,
  2. Any costs and expenses relating directly to the property, including any financing held by the property owner operation and maintenance and repaid obligations (such as common costs of common area maintenance, property taxes, insurance and utilities)

When is the CECRA loan forgiven?
December 31, 2020.


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