Under the latest extension, those who qualified during the original period will still be eligible for CECRA assistance without having to determine whether the 70-per-cent revenue decline continued in July, August or September.
This will be the final extension of this program as the government explores options to support small businesses as they face the ongoing challenges of the COVID-19 pandemic
If you have previously been approved, you automatically qualify for the extensions and no additional documents are required. You must log into the portal and opt-in for your impacted tenants.
If you haven’t yet applied for CECRA for small businesses, you must apply for July and August as part of your entire application.
The program offers assistance for the months of April, May, June and July 2020.
- Property owners can apply later and the program will be applied retroactively.
- Property owners may still apply for assistance once the 3-month period has ended if they can prove eligibility during those months. The end date for applications is August 31, 2020.
- Property owners must use the funds from CECRA to refund amounts in excess of 25% paid by the small business tenant for the period or at the option of the impacted tenant apply rent paid in excess of 25% to future rent owing by the impacted tenant.
CMHC will provide forgivable loans to eligible commercial property owners. Funds will be transferred to the property owner’s financial institution.
- The loans will cover up to 50% of the monthly gross rent owed by impacted small business tenants during the 3-month period of April, May and June 2020.
- The property owner will be responsible for no less than half of the remaining 50% of the monthly gross rent payments (paying no less than 25% of the total).
- The small business tenant will be responsible for no more than half of the remaining 50% of the monthly gross rent payments (paying no more than 25% of the total)
When to Apply
To manage this volume and allow CMHC to serve you better, CMHC will be asking property owners to register on the following days once the application process has opened.
Property owners who are located in Manitoba, Saskatchewan, Ontario and the Territories, with up to 10 tenants who are eligible for the program can register on Tuesday, May 26, 2020.
What do you need
Property owners will need to provide information in support of their application, sign an attestation and agree to the terms and conditions of the loan agreement in order to be eligible for the program.
The legal version of these application documents will be available in the portal when it opens at 8:00 a.m. EST on May 25, 2020.
You’ll also need to provide the following information:
Property owner information
Property information includes: property address, property type, property tax statement, latest rent roll for each property and the number of commercial units
Applicant information includes: banking information (including bank statement), property owner contact information, co-ownership information and contact details for co-owners
Tenant information
Tenant information includes: tenant contact information, registered business name, lease area and the monthly gross rent for the period of April, May and June 2020
Eligibility
To qualify for CECRA for small businesses, the commercial property owner must:
- own commercial real property* which is occupied by one or more impacted small business tenants
- enter (or have already entered) into a legally binding rent reduction agreement for the period of April, May and June 2020, reducing an impacted small business tenant’s rent by at least 75%
- ensure the rent reduction agreement with each impacted tenant includes:
- a moratorium on eviction for the period during which the property owner agrees to apply the loan proceeds, and
- a declaration of rental revenue included in the attestation
NOTE: Small businesses that opened on or after March 1, 2020 are not eligible.
Impacted small business tenants are businesses — including non-profit and charitable organizations — that:
- pay no more than $50,000 in monthly gross rent per location (as defined by a valid and enforceable lease agreement)
- generate no more than $20 million in gross annual revenues, calculated on a consolidated basis (at the ultimate parent level)
- have experienced at least a 70% decline in pre-COVID-19 revenues **
NOTE: Eligible small business tenants who are in sub-tenancy arrangements are also eligible, if these lease structures meet program criteria.
Source: https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business
