Rent Relief Is On Its Way For Small Business Tenants

The federal government, in partnership with the provincial and territorial governments, has established the Canada Emergency Commercial Rent Assistance program (CECRA) for small business owners paying rent. CECRA provides financial relief to small business tenants impacted by COVID-19 by offering unsecured, forgivable loans to eligible commercial property owners who are then required to pass along rent relief to their eligible small business tenants.

Under CECRA, a small business tenant impacted by COVID-19 is defined as a business that: (i) has had a 70% or greater decline in its pre-COVID-19 revenues, (ii) pays up to a maximum of $50,000 in monthly gross rent per location, and (iii) generates a maximum of $20-million in gross annual revenues, calculated on a consolidated basis.