Applications Available for Commercial Rent Assistance Program
Applications for businesses seeking funding through the Canada Emergency Commercial Rent Assistance Program are now available at the Canada Mortgage and Housing Corporation (CMHC) website.
This program aims to 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 per cent 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 eligible small business tenants’ rent to no more than 25 per cent for the three corresponding months under a rent forgiveness agreement, which will include a term not to evict the tenant while the agreement is in place. Approved agreements would have a rent composition made up of the following: the small business tenant would cover up to 25 per cent of the rent, the program would cover 50 per cent of the rent and the landlord would cover the remaining minimum 25 percent.
Impacted small business tenants are businesses paying no more than $50,000 per month in rent and who have experienced at least a 70 per cent drop in pre-COVID-19 revenues. This support will also be available to non-profit and charitable organizations.
The program, which will be administered by CMHC, is a collaboration between the Federal Government and provincial and territorial governments. The Provincial Government and the Federal Government will cost-share the program.