COVID-19 Update For Businesses – April 29

CECRA (Canada Emergency Commercial Rent Assistance)

What is it: Financial support for property owners that temporarily reduce monthly rent by 75% for affected tenants. The property owners may apply for a forgivable loan (administered by the CMHC) equal to 50% of rent due for April, May and June by eligible small business clients experiencing financial hardship. The loan would be forgiven if the commercial property owner agrees, under a rent forgiveness agreement, to reduce the tenant’s rent by at least 75%. The property owner must also pledge not to evict the tenant while the rent forgiveness agreement is in place.

Who is an eligible small business tenant:

  • A business who pays a monthly rent of less than $50K
  • The business has temporarily ceased operations, or have experienced a 70% drop in revenue due COVID-19
  • The business will be able to pay 25% of the rent due for April, May and June

When can you apply: mid-May according to the CRA website

More info: https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business

BC Employment Standards Act is being reviewed to potentially extend the limit of the temporary layoff maximum of 13 weeks. At this time after 13 weeks off of work, the employee is deemed to have been dismissed without just cause, and therefore is owed severance.

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