<aside> 3️⃣ This is the third guide from Uppercase COVID19 Retail Guide for Founders

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The Canadian federal government and provincial governments have taken steps to help businesses in this challenging time. A specific focus on small businesses, many of which are retail businesses, has resulted in subsidies, loans, rent reductions and more that you should be taking advantage of.

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Government Support

The Canadian federal government has launched 3 programs in particular that provide support for small businesses struggling due to the restrictions in place because of COVID-19.

Canada Emergency Commercial Rent Assistance (CECRA)

What is it?

• The Government of Canada has agreed in principle with all provinces and territories to implement the CECRA.
• Small businesses affected by COVID-19 can have rent reduced by as much as 75%.
• The federal Government will provide forgivable loans to qualifying commercial property owners to cover 50% of 3 monthly rent payments during April, May, and June.
  • To qualify, the landlord has to meet the following criteria:
    • The mortgaged property owner has to reduce their tenant's rent by at least 75% for the 3 corresponding months under a rent forgiveness agreement.
    • The rent forgiveness agreement would include a term not to evict the tenant.
    • The small business tenant would cover the remainder of the rent, up to a maximum of 25%.
• Rent is split up as follows: the tenant pays 25%, the property owner 25% (75% decrease but only 50% covered), while the federal government and provinces would share the remaining 50% (forgivable loan to landlord).
• The Canada Mortgage and Housing Corporation (CMHC) will administer and deliver the CECRA.
  • The owner's property must be mortgaged by a lender. The forgivable loans would be disbursed directly to the owner's lender.

Who is eligible?

Landlords (Property Owners)

• You own property that generates rental revenue from commercial real property located in Canada.
• You are the property owner of the commercial real property where the impacted small business tenants are located.