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ARTICLE · 02 DECEMBER 2020

Canada Emergency Rent Subsidy (CERS) Flowchart

Moodys Private Client Law LLP
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Earlier in 2020, the Canada Emergency Commercial Rent Assistance (CECRA) program was introduced by the Government with great fanfare. Unfortunately, due to the design of the program ...

CanadaReal Estate and Construction
Kenneth Keung
Kenneth Keung
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Earlier in 2020, the Canada Emergency Commercial Rent Assistance (CECRA) program was introduced by the Government with great fanfare. Unfortunately, due to the design of the program (e.g. asking landlords to agree upfront to a net 25% cut in rental revenue, and burdening the landlord with all of the risk and administration), the take-up of the CECRA was dismal and most small business tenants did not receive the help the program was intended to deliver. To replace the CECRA, the Government recently introduced the Canada Emergency Rent Subsidy (CERS). The CERS legislation was passed into law on November 19, 2020 and it provides assistance for rent and property expenses going back to September 27, 2020. In our view, the CERS is a much more powerful and accessible program than the CECRA and it is delivered straight to businesses that need such assistance.

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