Latest Update (June 1st):
B.C. businesses eligible for rent support from the federal government (CECRA) will be protected from evictions as the B.C. government issues a new order under the Emergency Program Act (EPA).
Eligible businesses whose landlords choose not to apply for the federal CECRA program will be protected from evictions due to unpaid rent payments through to the end of June 2020, as determined by the federal program timelines.
- View News Release from the government of B.C.
- Canada Mortgage and Housing Corporation - CECRA Resource Page
The Canada Emergency Commercial Rent Assistance (CECRA) for small businesses will lower rent by 75 per cent for small businesses that have been affected by COVID-19.
- CECRA will provide forgivable loans to qualifying commercial property owners, whether they have a mortgage on their property or not. The loans will 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 qualifying property owner agrees to reduce the small business tenants’ rent by at least 75 per cent under a rent reduction 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 per cent of the rent.
- Impacted small business tenants are businesses that are paying less than $50,000 per month in gross rent in a given location, with annual revenues of less than $20 million (at the ultimate parent level), and who have experienced at least a 70 per cent drop in pre-COVID-19 revenues.
To qualify for CECRA, the property owner must meet the following requirements:
- You own property that generates rental revenue from commercial property located in Canada
- You are the property owner of the commercial property where the impacted small business tenants are located
- You have 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%
- Your rent reduction agreement with impacted tenants includes a moratorium on eviction for the period of April, May and June 2020
What Defines 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, based on the existing accounting practices of the small business), and
- have temporarily ceased operations (i.e. generating no revenues), or has experienced at least a 70% decline in pre-COVID-19 revenues.
Please Note: When measuring revenue loss, small businesses can compare revenues in April, May and June of 2020 to that of the same month of 2019. Businesses that commenced operations after June 30, 2019 can also use an average of their revenues earned in January and February of 2020.
What You Need to Apply
Property owners will need to provide information in support of their application, sign an attestation and agree to the terms and conditions of the loan agreement in order to be eligible for the program.
- Tenant or Sub-tenant’s Attestation (sample PDF):
Property owners must have each of their eligible impacted 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.
Property Owner 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, tax registration number (i.e 9 digits + RT extension), number of employees, lease area, and the monthly gross rent for the period of April, May and June 2020
How to Apply for CECRA
Applications for CECRA are currently open. This program will be taking applications until August 31, 2020. Click here to apply for Canadian Emergency Commercial Rent Assistance (CECRA) for small business.
To manage the volume of expected applicants, property owners will be asked to register on the following days to help manage the flow: