Support for Small Business Tenants and Landlords Now AvailablePublished on June 03, 2020
Support for Small Business Tenants and Landlords Now Available
Ontario commercial landlords can apply for urgent rent assistance through Canada Emergency Commercial Rent Assistance for small businesses
TORONTO — All commercial landlords in Ontario can now apply for rental assistance to help their small business tenants impacted by the COVID-19 pandemic. This initiative will keep more small businesses in operation and more people employed as the province gradually and safely restarts the economy.
The Ontario government, in partnership with the federal government, has launched the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses. The province is committing $241 million to the program, which will provide more than $900 million in support for small businesses across Ontario during this difficult time. To find out how much rent support you may be eligible for, visit Ontario.ca/rentassistance.
"We know that some of the necessary measures put in place to stop the spread of COVID-19 have created significant financial hardships for small businesses," said Rod Phillips, Minister of Finance. "That's why we've partnered with the federal government to deliver urgent rent assistance and help both small businesses and commercial landlords make ends meet. I encourage all commercial landlords to take advantage of this benefit as soon as possible in order to provide some certainty for our small businesses."
The CECRA for small businesses, administered by the Canada Mortgage and Housing Corporation (CMHC), provides forgivable loans to eligible commercial landlords to help cover 50 per cent of commercial rent for tenants for the months of April, May and June 2020. The tenant will be responsible for covering up to 25 per cent of rent, so that up to 75 per cent of the rent is covered.
To receive the forgivable loan, eligible commercial landlords will be required to enter into a rent reduction agreement with their impacted small business tenants for April to June 2020, which includes committing to a moratorium on evictions for three months.
"As Ontario's economy gradually reopens, we will continue to work with our federal partners to ensure people and businesses across the province get the support they desperately need. We want to do everything we can to ensure our small businesses are able and ready to reopen their doors when the time is right," said Phillips.
To learn more and apply for the CECRA for small businesses, visit the Canada Mortgage and Housing Corporation's (CMHC) application portal.