With the Canada Emergency Commercial Rent Assistance (CECRA) program being extended by another month to help small businesses pay their rent for August, here’s what commercial brokers need to keep in mind before the Aug. 31 deadline for new applications.
As reported by Mondaq, those eligible for new applications are small businesses who currently have less than $20 million in annual gross revenues, have less than $50,000 per month in gross rent, and have suffered at least a 70% decline in pre-pandemic revenues (on average) from April to June.
“The gross revenue must consist of revenue earned from ordinary activities in Canada, using the small business tenant’s normal accounting method and excluding gross revenues from extraordinary items,” Mondaq said.
New applicants can apply for the CECRA’s three-month initial period, four months, or five months. Meanwhile, previously enrolled tenants will be eligible for the one-month extension if they had the 70% revenue drop during the April-June period. Existing applicants will be able to reapply for extension until Sep. 14.
“Businesses will not have to reassess whether they continue to have a 70% revenue decline in July or August in order to be eligible,” Mondaq said.
Applicants need not fear burdensome repayments, as the Canada Mortgage and Housing Corporation has assured a loan scheme with significant elbow room.
“The forgivable loans provided by the CECRA cover 50% of three to five monthly rent payments that are payable by eligible small business tenants during April, May, June, July, and August,” Mondaq said.