April 27, 2020by Israel Foulon LLP
Since our April 22, 2020 E-Bulletin, the federal government has provided key details relating to the Canada Emergency Commercial Rent Assistance (“CECRA”):
- The CECRA program will lower rent by 75 per cent for qualifying small businesses that have been affected by COVID-19. The program is a collaboration between the federal and provincial governments that will be administered through the Canada Mortgage and Housing Corporation and is expected to be operational by mid-May.
- The program is available to businesses paying less than $50,000 per month in rent who have temporarily ceased operations because of the pandemic, or have experienced at least a 70 per cent drop in pre-coronavirus revenues. It will also be available to non-profit and charitable organizations.
- Qualifying commercial property owners will receive forgivable loans to cover 50% of three monthly rent payments from small businesses facing financial hardship during April, May and June 2020.
- The loans will be forgiven if the mortgaged property owner agrees to reduce the business’ rent by at least 75 per cent for those months under a rent forgiveness agreement, which will include a term not to evict the tenant while the agreement is in place.
- The small business tenant would cover the remainder of up to 25% of the rent.
Given the exceptional and unprecedented situation, we expect further developments in the coming days.
Israel Foulon’s Response to COVID-19 Israel Foulon is assessing the situation as it evolves, and is taking all necessary precautions within its workplace. To slow the spread of COVID-19 and for the health of our team and clients, absent extraordinary circumstances we are working remotely until further notice whenever possible. However, please be aware that our offices remain open and are fully functioning. In the circumstances, we encourage our clients to contact us by phone and email to the extent possible. Voicemail messages left at our office phone numbers are immediately forwarded via email. All messages will be promptly responded to. We remain steadfast in our commitment to our clients and would be more than happy to assist you with concerns regarding COVID-19 or any other employment or labour matters.