November 25, 2020
For information on the Canada Emergency Rent Subsidy: CLICK HERE
October 13, 2020
CECRA is being replaced with Canada Emergency Rent Subsidy (“CERS”)
New Canada Emergency Rent Subsidy will provide support directly to qualifying tenants and landlords that have been affected by COVID-19.
• Available retroactively from September 27 and will be available until June 2021
• To subsidizes up to 65% of eligible expenses incurred by businesses, charities and non-profits that have suffered a revenue drop, on a sliding scale, similar to the CEWS
• In addition to the 65% subsidy, a top-up subsidy of 25% will be available for organizations temporarily shut down due to a mandatory public health order issued by a qualifying public health authority (such as the measures announced for Toronto, Ottawa and Peel).
Further details to follow.
September 24, 2020
Your property owner can now opt-in for the September extension for CECRA.
• The September extension is based on the existing program parameters for the April, May and June period.
• You automatically qualify for the September extension without re-assessing a revenue decline for that month, if you are/were eligible for the original period. No additional documents are required.
• A written notice will confirm the extension of your Rent Reduction Agreement. Your property owner must notify you in writing that they have requested the extensions on your behalf.
• New applicants can apply for up to 5 months of rent assistance (from April through August) all at once. Once the initial application is pre-approved, your property owner can opt-in for September.
• This is the final extension of the program.
If your property owner has not yet submitted their application or is still creating it, the deadline to submit new applications is September 30th, 2020.
If your property owner has been approved for rental assistance and wants to opt-in for the extensions only, the deadline to submit the request is October 30th, 2020.
September 10, 2020
CECRA will be extended by one month to help eligible small businesses pay rent for September. Current CECRA application deadlines will also be extended to accommodate this extension.
August 21, 2020
If a property owner has been approved for rental assistance and is requesting the July and/or August extension, the deadline to submit the application is September 14, 2020.
o The August extension is based on the existing program parameters for the April, May and June period. No new documents are needed to opt-in.
o Not all tenants in the original application need to be included in the request for the July and/or August extension.
o Property owners can only opt-in once and no new tenants can be added.
August 4, 2020
CECRA is extended to August for those tenants approved in the April, May, June and July application.
If a business had an average revenue decline of 70% or more in April, May and June, they are deemed eligible for the additional month of rent relief.
If you have been approved for rental assistance and you are applying for the July and/or August extension, your deadline to submit your application is September 14, 2020.
If you have not yet submitted your application or are still creating it, your deadline to submit new applications that include the July and/or August extension is August 31, 2020.
July 30, 2020
The July Extension Opt-In is Now Available.
If you have previously been approved, you automatically qualify and no additional documents are required. You must log into the portal and opt-in for your impacted tenants.
If you haven’t yet applied for CECRA for small businesses, you can apply for July as part of your entire application.
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.
Source: https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business
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?
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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?).
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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.
- 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:
- 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,
- 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.
Source: https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business
