It is challenging for small business owners who faced financial hardships due to Covid-19. Thanks to the commercial rent relief acts which is a lifesaver for most of the small business owners. The Canadian government in partnership with the provincial and territorial government came up with an emergency rent assistance program called CECRA. commercial rent relief canada is of course a boon to small business owners in the time of crisis. Find the full list here on the eligibility and procedures to apply for commercial rent relief.
What is Commercial Rent Relief?
The rent relief and financial assistance are offered to small business owners, tenants, and landlords. These are forgivable loans offered to the commercial property owners. It covers 50% of their rent payments. The rent relief is directly disbursed to the mortgage lender. Properties under a mortgage are eligible for the commercial rent relief. The cost of the rent is shared among the tenants, landowners, and the government. This rent relief support will be extended up to April 1, 2020. The rent relief forgives all the loans provided the landlord accepts the terms and conditions. The landlord cannot recover the rent after the closure of the program.
Small businesses impacted by Covid-19 are eligible to apply for the rent relief. Businesses with a 70% drop in revenue due to Covid-19 can apply for the rent relief funds. All small business owners who pay up to $50,000 monthly rent for a single business location are eligible to apply for rent relief. Companies generating annual gross revenue of $20 million can be benefited from this commercial rent relief act. There are certain exceptions to become eligible for small business tenants.
The following do not qualify for the rent relief program
- An organization holding a political office
- Organization under criminal prosecution
- Organization functioning in property owned by the federal, provincial, and municipal government.
Benefits of Commercial Rent Relief
Small businesses are greatly benefited by this rent relief. The future of small business seems to be attractive with this federal rent relief. The loan pays the property owner up to 50% of the monthly rent to be paid by the tenant. The tenant must take up the responsibility of paying 25% of the monthly gross rent. All the loans of small business owners will be forgiven under the commercial rent relief on December 31, 2020.
How To Apply?
The small business application portal can be used for applying for commercial rent relief. Visit the CanadaMortgage and Housing Corporation portal to apply for the rent relief program. Property owners must register before they apply for rent relief. The portal is open 24/7 for uploads. They can apply for the rent relief directly. Commercial property owners must provide the following documents when applying for rent relief.
- Property Address
- Property Type
- Property Tax Statement
- Rent roll
- Number of commercial units
- Property contact information
- Bank information
- Bank Statement
The tenants must provide the following
- Contact information
- Lease area
- Registered business name
- Monthly gross rent