- Property information such as address, tax statement, rent roll, number of commercial units
- Applicant information such as banking information, contact information and co-owner information,
Sample attestations and agreements are available on the CECRA website to allow applicants to review and prepare ahead of the application portal being opened. Final versions of the documents will be made available in the portal once it becomes available.
New! What organizations are delivering the program?
CMHC has engaged MCAP and First Canadian Title to deliver the program. Landlords may be contacted by either organization during validation and funding processes.
How does the Small Business Tenant get rent relief?
The Property Owner of an affected Small Business Tenant enters a forgivable loan agreement with CMHC for 50% of the affected Tenant’s gross rent for the months of April, May and June 2020.
The Property Owner can then forgive 75% of the Tenant’s gross rent for the months of April, May and June 2020.
The loan is forgiven if the Property Owner complies with all requirements of the Forgivable Loan Agreement.
What if the Landlord has already collected part, or all, of the Tenant’s rent for the period?
The agreement will require the Landlord sends the funds to the Tenant or, if the Tenant agrees, provide a credit for future rent payments.
What is the definition of an affected Small Business Tenant in terms of qualifying a Landlord to be eligible for the program?
- Tenant need to be a non-essential business that has temporarily ceased operations or is experiencing a 70% decline in Pre-COVID-19 revenues (as determined by comparing gross revenues in April, May or June 2020 to the same month in 2019 or compared to average gross revenues for January and February 2020)
- They can pay no more than $50,000 in monthly gross rent under a lease agreement and generate no more than $20 million in gross annual revenues on a consolidated basis at the parent level
- They have entered, or will enter, into a rent reduction agreement with the Property Owner for April, May and June 2020 (including a moratorium on eviction) under which the Tenant’s rent is reduced to 25% of the Gross Monthly Rent for the same period. Where the Property Owner and Tenant have already entered into rent deferral or abatement arrangement, such arrangement can be amended to be consistent with program eligibility criteria.
Are Franchisees eligible (Tim Hortons, McDonalds, etc.)?
Yes, provided the franchise location meets the definition of a Small Commercial Tenant
Are Residential Properties eligible?
Yes, with respect to the eligible Commercial Tenant(s) within the Residential Property.
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In our featured article In “Betting Against the House: Canadian Real Estate Through the Pandemic,” BMO Senior Economist
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Mike Beg
Head, Real Estate Finance
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Updated May 21, 2020; New information about the program has been highlighted in the below FAQ
On April 30, 2020 CMHC formally announced the launch of the Government’s Canada Emergency Commercial Rent Assistance (CECRA) program to aid small businesses experiencing financial hardship due to COVID-19 first announced by Prime Minister Trudeau on April 16, 2020.
The program offers forgivable loans to eligible Commercial Property Owners (Landlords) so that they can reduce the rent of their impacted Small Business Tenants by at least 75% for the months of April, May and June, 2020.
BMO has put together the following FAQ from our interpretation of the program. We will continue to update this page as new information arrives. You can also receive updates on the CECRA program by signing up on the CMHC website .
New! Who is eligible to receive funding?
Landlords that generates rental revenue from commercial property located in Canada. The program is available to Property Owners regardless of whether there is an existing Mortgage on the affected property.
New! Are Owner Occupied Properties eligible to participate in the program?
Yes, presuming the Tenant business meets the definition of an affected Small Business Tenant and the Owner/Tenant had a lease in place for the space at market rental rates on April 1, 2020.
New! Can Tenants apply on behalf of their Landlord?
No. The application for the Forgivable Loan must be initiated by the Landlord. CMHC will provide forgivable loans to the Landlord with funds transferred to the Property Owner’s financial institution.
New! How and when can I apply?
The online application portal is expected to open on May 25. Once open, Property Owners should register using the schedule below; the staggered approach is in place to assist CMHC in managing the anticipated large volume of applications,
Day
Who should register
Eligible Property Owners located in Atlantic Canada, British Columbia, Alberta and Quebec with up to 10 Tenants
Eligible Property Owners located in Manitoba, Saskatchewan, Ontario and the Territories, with up to 10 Tenants
All other Property Owners in Manitoba, Saskatchewan, Ontario and the Territories
All other Property Owners in Atlantic Canada, British Columbia, Alberta and Quebec
Once registered, Property Owners can access the portal 24/7 to upload documents and input data.
New! What documentation does the Property Owner need to provide for the application process?
Property Owners will need to provide information and documentation to be eligible, including:
- Tenant or Sub-tenant’s Attestation(s)
- Property Owner’s Attestation
- Rent Reduction Agreement(s)
- Forgivable Loan Agreement
- Property Owner information
- Property information such as address, tax statement, rent roll, number of commercial units
- Applicant information such as banking information, contact information and co-owner information,
Sample attestations and agreements are available on the CECRA website to allow applicants to review and prepare ahead of the application portal being opened. Final versions of the documents will be made available in the portal once it becomes available.
New! What organizations are delivering the program?
CMHC has engaged MCAP and First Canadian Title to deliver the program. Landlords may be contacted by either organization during validation and funding processes.
How does the Small Business Tenant get rent relief?The Property Owner of an affected Small Business Tenant enters a forgivable loan agreement with CMHC for 50% of the affected Tenant’s gross rent for the months of April, May and June 2020.
The Property Owner can then forgive 75% of the Tenant’s gross rent for the months of April, May and June 2020.
The loan is forgiven if the Property Owner complies with all requirements of the Forgivable Loan Agreement.
What if the Landlord has already collected part, or all, of the Tenant’s rent for the period?
The agreement will require the Landlord sends the funds to the Tenant or, if the Tenant agrees, provide a credit for future rent payments.
What is the definition of an affected Small Business Tenant in terms of qualifying a Landlord to be eligible for the program?
- Tenant need to be a non-essential business that has temporarily ceased operations or is experiencing a 70% decline in Pre-COVID-19 revenues (as determined by comparing gross revenues in April, May or June 2020 to the same month in 2019 or compared to average gross revenues for January and February 2020)
- They can pay no more than $50,000 in monthly gross rent under a lease agreement and generate no more than $20 million in gross annual revenues on a consolidated basis at the parent level
- They have entered, or will enter, into a rent reduction agreement with the Property Owner for April, May and June 2020 (including a moratorium on eviction) under which the Tenant’s rent is reduced to 25% of the Gross Monthly Rent for the same period. Where the Property Owner and Tenant have already entered into rent deferral or abatement arrangement, such arrangement can be amended to be consistent with program eligibility criteria.
Are Franchisees eligible (Tim Hortons, McDonalds, etc.)?
Yes, provided the franchise location meets the definition of a Small Commercial Tenant
Are Residential Properties eligible?
Yes, with respect to the eligible Commercial Tenant(s) within the Residential Property.
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