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ARTICLE · 14 MAY 2020

Canada's Emergency Commercial Rent Assistance Program (CERCA)

Dickinson Wright PLLC
Dickinson Wright PLLC
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Dickinson Wright PLLC

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On April 24, 2020, The Canadian Federal Government provided some details about the new Canada Emergency Commercial Rent Assistance program (CECRA) for small businesses and commercial landlords.

CanadaTax

On April 24, 2020, The Canadian Federal Government provided some details about the new Canada Emergency Commercial Rent Assistance program (CECRA) for small businesses and commercial landlords. The CECRA was announced on April 16, 2020 to provide relief for small business tenants and, in some respect, landlords.

Under the CECRA, the Federal Government will offer forgivable loans to the landlord equal to 50% of three monthly rent payments that are payable by eligible small business tenants who are experiencing financing hardship in April, May, and June. The loans will be forgiven if the mortgaged property owner agrees to reduce the small business tenants' rent by at least 75%, with the remaining 25% or less covered by the tenant.

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