Federal and provincial governments have announced the extension of the Canada Emergency Commercial Rent Assistance (CECRA) program to help small businesses cover their July expenses.
Aside from the extension, the governments offered assurances that insurance payments for missed rents and provincial rent supports won’t be deducted from the rent-support loans.
Small-scale ventures that previously qualified in April, May, or June will also immediately qualify for the extension, without the need for reassessment.
Finance Minister Bill Morneau said that the extra month would greatly help in making sure that small businesses and property owners “are poised to rebound in the post-pandemic recovery.”
With a budget of more than $2.97 billion, the program is expected to be able to assist through at least September, according to the Canadian Federation of Independent Business. The organization said that the program still needs some revisions in terms of ease of access, however.
The announcement came just a few weeks after the Business Development Bank of Canada announced that it will be providing loans for medium-scale companies that were significantly impaired by the coronavirus outbreak.
Qualifying businesses, which can apply until the end of September, include companies with revenues ranging from $100 million to $500 million, which were “financially viable” before the crisis.
Through their preferred banks, applicants can benefit from BDB loans worth $12.5 million up to $60 million. BDB will be covering 90% of the loan, with the remainder to be handled by the applicant’s bank.