April 24, 2020
Canada Emergency Commercial Rent Assistance (CECRA)
This morning the Federal Government announced additional details pertaining to the Canada Emergency Commercial Rent Assistance (CECRA) initiative, for businesses who need assistance with paying for commercial rent due to COVID-19.
Here are some of the key points from this morning’s announcement:
· Some details have been released, including the application process, but more will be supplied later.
· Rent relief for businesses with rent less than $50,000 per month
· 75% of rent will be covered
- Federal Government providing 50%
- Landlords providing 25%
- Business remains responsible for 25%
- The announcement indicates that this 75% relief is rent forgiveness and not a deferral
- Federal portion of 50% is paid directly to the landlord via CMHC
- Subsidy is only paid if the landlord agrees and accepts the forgiveness of 25% of rent.
· Available for businesses that were forced to close due to government requirements related to COVID-19
· Retroactive to April 1, 2020 and applies to April, May and June rent
· New measures for business with rent greater than $50,000 per month will be announced soon.
Example:
· Monthly rent of $10,000
· Tenant and landlord have agreed to defer monthly rent for April
· How the subsidy is applied:
- Landlord and Tenant agree to apply for and accept the terms of the 75% subsidy
- Landlord agrees to forgive 25% of regular rent: $2,500
- Application is made to CMHC for 50% of the subsidy, which is paid directly to the landlord
o Landlord receives $5,000 of rent directly from CMHC
- Tenant will remain responsible for remaining $2,500 of rent deferral
BC Employment Benefit
The Government of British Columbia has provided additional details about the previously announced BC Emergency Benefit:
· This is a one time $1,000 payment for people who have been unable to work as a result of the crisis
· This benefit is tax free.
· Online applications begin May 1, 2020
· Most individuals who qualified for the CERB will qualify for the BCEB
· Must be a BC resident as of March 15, 2020 and agree to file their 2019 personal tax return as a BC resident.
· Additional details are found here.
The information contained in this communication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.
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