Canada Emergency Commercial Rent Assistance

Published: May 27, 2020
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Abstract

Introducing rent assistance for small businesses. The rent assistance will be provided through forgivable loans to property owners leasing property to eligible small businesses. In order to qualify for a forgivable loan in relation to the rent paid by an eligible small business, the property owners must have signed an agreement to lower the rent of a tenant small business by at least 75% and to not evict the tenant in April, May, or June of 2020. The loan will be forgiven if rents are in fact lowered by at least 75%. Eligible small businesses are those who:
  1. pay no more than $50,000 in monthly gross rent per location;
  2. generate no more than $20 million in annual gross revenues, calculated on a consolidated basis; and
  3. have temporarily ceased operations (i.e. generating no revenues) or have experienced at least a 70% decline compared to pre-COVID-19 revenues.
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. Loans and loan forgiveness will be available retroactively, provided an application is made by 31 August 2020. Most provinces bear 25% of the cost of the program, up to a cap based on 25% of the initially estimated cost of the program; however, the cost of the program will not be shared in the territories or PEI.