The Canada Mortgage and Housing Corporation published more information on the Canada Emergency Commercial Rent Assistance Program (“CECRA”). Highlights include:
- Commercial Rent Landlords must have declared rental income on their tax returns for 2018 and/or 2019 to qualify.
- Landlords must apply before the deadline of August 31, 2020.
- The Government loans are forgivable if the landlord complies with all applicable program terms and conditions
- Landlords cannot seek to recover rent abatement amounts after the Program is over
- The Government loans to the landlord will cover 50% of the gross rent owed by a qualifying small business tenant during April, May, and June 2020
- Landlords can apply retroactively for this Program provided that the landlord can prove eligibility during April, May, and June 2020.
- Landlords must refund any amounts paid by the small business tenant for that period. The refund can be a credit for future rent if agreeable by the tenant and the landlord.
Small business tenants to qualify if:
- The $50,000 maximum in monthly gross rent is per location and defined in a valid and enforceable lease agreement, and
- The small business cannot generate more than $20 million in gross annual revenues calculated on a consolidated basis (at the ultimate parent level).
Reference: http://www.mondaq.com/canada/landlord-tenant--leases/938232/cmhc-comments-on-the-canada-emergency-commercial-rent-assistance-program
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