CECRA is designed to cover 75% of the rent for small business owners and will cover the months of April, May and June 2020. This will allow small business tenants to avoid bankruptcy and in turn property owners will continue to receive rental income.
Applications for the program are now open and eligible owners can apply through the Canada Mortgage and Housing Corporation (CMHC) website.
How to Apply
This is a two-step process.
- Register and create an account on the website.
- Complete the application and upload the supporting documents.
Keep in mind that once you’re registered, the portal will be available 24/7 for applicants so that they can input information and upload documents.
You will need to provide the following information.
- Rent reduction agreement(s) and landlord and tenant attestations.
- As a property owner, you will also need to agree to the terms and conditions in the Forgivable Loan Agreement.
- You will need to provide your property information such as address, property type, property tax statement, latest rent roll for each property and the number of commercial units.
- Property owner information also includes your banking information (including your bank statement), your contact information and if there are co-owners then co-ownership information and contact details for co-owners.
- Tenant information will also be required which includes their contact information, registered business name, number of employees, consolidated revenue, lease area and the monthly gross rent for the months of April, May and June 2020.
More information is available on the Canada Mortgage and Housing Corporation website.
- The application deadline is August 31, 2020.
- Property owners can apply even if the 3-month period has ended provided they can prove their eligibility for those months.
- The application process was staggered as a large number of applications were expected once the program opened. But as of May 29, 2020, all property owners across Canada can apply for CECRA.
- The program will be applied retroactively.
- These loans will be forgiven if the property owner complies with the terms and conditions including not to recover forgiven rent amounts from the tenants once the program is over.
The team at Syed A. Raza Professional Corporation is available to answer any queries you might have regarding your particular situation.
Contact us for a free consultation.