On October 9, 2020, the Federal Government announced plans to
introduce the new Canada Emergency Rent Subsidy
(“CERS”), which replaces the Canada
Emergency Commercial Rent Assistance Program
(“CECRA”) announced in May. Notably,
CERS would provide support directly to tenants. This addresses a
criticism of CECRA which placed the onus on landlords to apply for
the subsidy.
CERS will provide rent and mortgage support until June 2021 for
qualifying organizations affected by COVID-19. CERS will be
available to businesses, charities, and non-profits that have
suffered a drop in revenue, as long as they have eligible costs,
such as rent and mortgage interest payments.
In addition, CERS is available to businesses with more than
$20 million in annual revenue, and with more than $50,000 in
monthly rent. Businesses with revenue or rent obligations beyond
these amounts were previously not eligible for support under
CECRA.
