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Canada Emergency Commercial Rent Assistance (CECRA)

The Government reached an agreement in principle with all provinces and territories to implement the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses. This program will lower rent by 75 per cent for small businesses that have been affected by COVID-19.

  • The program will provide forgivable loans to qualifying commercial property owners to cover 50% of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, and June.
  • The loans will be forgiven if the mortgaged property owner agrees to reduce the small business tenants’ rent by at least 75% under a rent forgiveness agreement, which will include a term not to evict the tenant while the agreement is in place. The small business tenant would cover the remainder, up to 25% of the rent
  • Impacted small business tenants are businesses 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 revenues. This support will also be available to non profit and charitable organizations.

We encourage all eligible commercial property owners to participate in this program.

As part of your application, you must provide rent reduction agreement(s) and landlord and tenant attestations. To help you prepare, CMHC (Canada Mortgage and Housing Association) has outlined what information will be required and sample documents:

 

Since a large volume of applications is expected CMHC will be asking property owners to register on the following days once the application process has opened.

NOTE: Once registered, the portal will be available 24/7 for applicants to input data and upload documents.

Day Who should register?
Tuesday Property owners who are located in Manitoba, Saskatchewan, Ontario and the Territories, with up to 10 tenants who are eligible for the program
Wednesday All other property owners in Manitoba, Saskatchewan, Ontario and the Territories
Friday All

 

CMHC has engaged MCAP and First Canadian Title (FCT) to deliver CECRA for small businesses. You may be contacted by either MCAP or FCT throughout the applicant validation and funding processes.

 

CMHC has prepared sample documents to help property owners prepare for the application process

The legal version of these application documents will be available in the portal when it opens at 8:00 a.m. EST on May 25, 2020.

  • Tenant or Sub-tenant’s Attestation (sample PDF): Property owners must have each of their eligible commercial small business tenants and/or subtenants sign an attestation. The Tenants are responsible for attesting to their eligibility with the program requirements.
  • Property Owner’s Attestation (sample PDF)Property owners must sign an attestation confirming the information relating to the property owner and the property provided in the application is correct and attest to their eligibility with the program requirements.
  • Rent Reduction Agreement (sample PDF)Property owners must enter into a legally binding rent reduction agreement with each impacted tenant to confirm the rent reduction in accordance with the program terms and conditions.  This agreement is conditional upon final approval of the application for CECRA for small businesses.
  • Forgivable Loan Agreement (sample PDF)Property owners must agree to the terms and conditions in the application and outlined in the forgivable loan agreement.

All application documents are accessible beginning May 25, 2020.

Applicants will also need to provide the following information:

  • Property information includes: property address, property type, property tax statement, latest rent roll for each property and the number of commercial units
  • Applicant information includes: banking information (including bank statement), property owner contact information, co-ownership information and contact details for co-owners
  • Tenant information includes: tenant contact information, registered business name, lease area and the monthly gross rent for the period of April, May and June 2020

TIP! If you have questions about the sample documentation, CMHC asks that you wait to speak to a specialist when the portal opens at 8:00 a.m. on May 25, 2020. Sign up at the following link: https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business