UPDATE: CECRA Extended Through September 2020 – Real Estate and Construction – Canada – Mondaq News Alerts

On Wednesday, September 9, 2020, the federal government
announced an extension of the Canada Emergency Commercial Rent
Assistance (“CECRA”) program through September
2020.

CECRA reduces monthly rent by 75% for eligible small and
medium-sized businesses that have been significantly affected by
COVID-19. CECRA relief was originally only available for the months
of April, May and June of 2020. The program was subsequently
extended through July and August of 2020, and, most recently,
through September. All tenants who were approved in their April,
May and June application are automatically eligible for the July,
August and September extensions. New applicants need only meet the
CECRA criteria for April, May and June of 2020 in order to qualify
for the entire CECRA period (April-September of 2020).

A commercial tenant is eligible for CECRA if it:

• pays no more than $50,000 in monthly
  gross rent per location;
• generates no more than $20 million in
  gross annual revenues (calculated at the parent-company level);
  and
• has experienced a reduction in gross
  revenues of at least 70% during April-June of 2020.
• In addition, for CECRA to apply, the
  landlord and tenant must enter into an agreement whereby the
  landlord agrees:
• to reduce the tenant’s monthly
  rent by at least 75% during the applicable CECRA period;
• to not evict the tenant during the
  applicable CECRA period; and
• to acknowledge that rent forgiven
  during the CECRA period is never recoverable.

UPDATE: CECRA Extended Through September
2020

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