Prime Minister Justin Trudeau has announced that application materials and updated criteria for Canada’s Emergency Commercial Rental Assistance (ECCRA) for small businesses are available, and that the program will be open to receive applications as of May 25.
The Government of Canada is working hard to protect workers’ jobs as the fight against the pandemic continues. That’s why, last month, we reached an agreement in principle with the provinces and territories to implement the AUCLC. Under the program, forgivable loans will be granted to owners of eligible commercial buildings. These landlords will then grant a rent reduction of at least 75% for the months of April and May (retroactively) and June to leasing small businesses.
This program will give building owners the opportunity to do their part in helping these small businesses and their employees succeed during these difficult times. We’re all in this together, and that’s why the government is taking steps to ease the burden of rent on businesses, while helping building owners generate rental income despite the crisis.
The AUCLC will provide important assistance to small businesses in financial difficulty, and complements other measures that help companies retain Canadian workers. Applications will be available on the Canada Mortgage and Housing Corporation website as of May 25. Application documents are available now.
Canada’s Economic Action Plan to respond to COVID-19 protects middle-class jobs and helps Canadian businesses get through the crisis. Together, we will continue to ensure that Canadians have what they need to pay their bills and protect the health and safety of their families during these difficult times.
Highlights
- Under AUCLC, forgivable loans are available to eligible commercial property owners, whether or not they have a mortgage on their property. These loans cover 50% of the three monthly rents payable in April, May and June by eligible small rental businesses in financial difficulty.
- The loan will be written off if the eligible landlord agrees to reduce the rent for the leased businesses by at least 75%. This will be done under a rent rebate agreement, which will provide that no tenant can be evicted during the period covered by the agreement. The leased small business would cover the remainder, up to 25% of the rent.
- Small businesses are defined as those paying less than $50,000 per month in gross rent, with annual revenues of less than $20 million (at the ultimate parent company level), and whose revenues prior to COVID-19 have decreased by at least 70%.
