Today the Government of Canada announced the Canada Emergency Commercial Rent Assistance (CECRA) program for small businesses that will provide forgivable loans to commercial property owners who in turn will lower or forgo rent to small businesses for the months of April, May and June.
The program will lower rent by up to 75% for eligible small businesses with rents under $50,000/month. The caveat is the landlord must agree to cooperate.
Commercial property landlords are offered loans to cover 50% of three monthly rent payments. These loans will be forgiven if the landlord agrees to reduce rent by at least 75% for the three months. Loan amounts would go directly to the lender.
Eligible businesses for this program include those that pay less than $50,000/month, have ceased operations due to COVID-19 temporarily or have experienced at least a 70% drop in revenues.
Many small businesses will find this program welcome but due to landlord opt-in, there may be some left without help.
Full details will follow at https://www.canada.ca/en/department-finance/economic-response-plan.html.
If you are a tenant or a landlord, please call us if you need help with your commercial property.
Michael Nam Nguyen PREC*
Praedia Real Estate Group | Magsen Realty