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ARTICLE · 12 NOVEMBER 2020

Not Just A Rent Subsidy: How CERS May Dramatically Affect You

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After almost a month of eager anticipation, the federal government has released draft legislation to institute the new Canada Emergency Rent Subsidy (CERS)...

CanadaReal Estate and Construction

After almost a month of eager anticipation, the federal government has released draft legislation to institute the new Canada Emergency Rent Subsidy (CERS), replacing the now-expired Canada Emergency Commercial Rent Assistance (CECRA). The legislation, which is awaiting third reading in Parliament will, if implemented, mark a radical shift from CECRA, for the following reasons:

  • First and foremost, CERS, despite the name, would not be just a rent subsidy for businesses that lease real estate, but also a subsidy for certain mortgage interest, insurance costs and property tax expenses for businesses that own the real property used in their business' ordinary activities (provided that such businesses are not primarily using such real property to earn rental income).

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