This morning the Prime Minister announced the Canadian Emergency Commercial Rent Program for commercial landlords who offer rent reductions to their tenants during April, May and June. This is a forgivable loan to commercial landlords. Ministers also indicated they would keep supporting businesses and thanked small business owners for their resilience during this period.
Here are the conditions:
- This is for qualifying commercial property owners whose commercial tenants are paying less than $50,000 in monthly rent
- Their tenants have experienced a reduction in revenues since the beginning of COVID-19 of at least 70%.
- This applies to tenants who are small businesses, not-for-profits and charities.
- Landlords have to agree to a moratorium on evictions
- They are forgivable loans for landlords that will cover 50% of the rent if they offer a reduction to their tenants of at least 75%.
- The commercial property owners can apply for a retroactive period. If they have already stepped up for reductions in April can apply.
- This is on top of other programs including: CERB, Interest-free Canada Emergency Business Account, Canada Emergency Wage Subsidy program; and deferrals for income tax, GST and HST, and customs payments.
- This program is in addition to loans through BDC and Export Development Bank
The loan is being offered through CMHC (Canada Mortgage and Housing). The Federal Government is asking landlords to be flexible with their tenants as they implement this measure – targetted to implement in mid-May.