Executive Summaries Oct 20, 2020
Fundamental Changes Improve Federal Rental Support Program
The federal government recently announced a new rent support program to replace Canada's Emergency Assistance Program, which expired last September (deadline to register for extensions is October 30, 2020).
The new assistance program, called the Canada Emergency Rent Subsidy (the "CERS"), will cover up to 65% of eligible rental or mortgage interest costs for those who have experienced a year-over-year decrease in income, and up to 90% for businesses that have had to temporarily close their doors due to a mandatory public health order. To obtain the maximum assistance of 65% of rental costs, merchants will have to demonstrate a loss of revenue of 70% or more. Below 70%, the level of support under the CERS will decrease proportionally.
Available to businesses, charities and non-profit organizations, the CERS will provide support assistance until June 2021. Unlike the original program, tenants will have to apply for assistance through the Canada Revenue Agency, rather than their landlord(s) through Canada Mortgage and Housing Corporation (CMHC).
This publication comes in addition and modifies our recent July Publication on Details on Canada Emergency Commercial Rent Assistance.