Bill C-9 creating the new Canada Emergency
Rent Subsidy (the "CERS") received its
Third Reading in the House of Commons on November 6, 2020 and is
now under consideration by the Senate.
The CERS, if enacted, will replace the now-expired
Canada Emergency Commercial Rent Assistance
("CECRA") program. CECRA, which was administered by Canada
Mortgage and Housing Corporation, with assistance from MCAP and
First Canadian Title, provided over $2 billion in commercial rent assistance
from April to September 2020 to businesses that experienced
decreased revenue as a result of the COVID-19 pandemic.
Whereas CECRA required landlords and tenants to enter into rent
reduction agreements to receive forgivable, interest-free,
government loans, the CERS is designed as a tax subsidy intended to
mirror, in many respects, the Canada Emergency Wage Subsidy (the
"CEWS") in effect since
April 2020. Bill C-9 operates as an amendment to the
Income Tax Act (Canada) (the "Tax
Act").
