Canada Emergency Commercial Rent Assistance (CECRA)

August 1, 2020

As the COVID-19 global pandemic continues to hit hard on Canadian businesses, the Federal Government in partnership with all provinces and territories announced the Canada Emergency Commercial Rent Assistance (CECRA) in April 2020.

The CECRA was initiated to help small businesses meet the cost of their rent. Commercial property owners can now get a forgivable loan if they meet the eligibility criteria. This includes reducing rent for small business tenants by at least 75% for the period between April to August 2020. 50% of the rent would be covered by CERCA, 25% by the tenant, while the remaining 25% will be waived by the property owners.

This economic response plan (CECRA) makes sure that commercial property owners get income while business tenants also get the help needed during these challenging times. The program will subsequently assist in easing financial hardship for both parties.

The CECRA is aimed at small business owners whose monthly gross rent is less than $50,000 for each business location, and annual consolidated revenue less than $20 Million. Also, these businesses must have experienced a 70% decline in pre-COVID-19 revenue.