As the COVID-19 pandemic continues to impact businesses globally, governments have rolled out various measures to support the struggling entities. One such measure in Canada is the Canada Emergency Commercial Rent Assistance (CECRA) program, which aims to provide relief to small businesses grappling with rent payments.
Under this relief program, the government has partnered with landlords to reduce rent expenses for small businesses impacted by COVID-19. Together, they will cover 50% of the rent cost, while tenants will be responsible for the remaining 50%.
To qualify for the program, small businesses must be paying rent of less than $50,000 monthly and have experienced at least a 70% decline in revenue due to the pandemic. Additionally, the program will be available to those who are non-essential but have been permitted to operate under their province`s reopening plans.
Small business owners who qualify for CECRA need to complete a rent reduction agreement with their landlords to access relief. The CECRA rent agreement outlines the terms of the program and how rent reduction will be implemented.
The rent reduction agreement is a legal contract that specifies the amount of rent reduction the landlord will offer, the terms of repayment of deferred rent, and other conditions of participation in the CECRA program. It is crucial that small businesses carefully review the agreement before signing and seek legal advice if needed.
The CECRA rent agreement includes various clauses such as the tenant’s obligation to use the rent relief to pay rent and other permitted expenses. The agreement also stipulates that tenants remain liable for any unpaid rent at the end of the program, and failure to comply with the terms may result in immediate eviction or legal action.
In summary, the CECRA program provides a much-needed relief for small businesses affected by the pandemic, and the rent agreement is an essential aspect of accessing the relief. Small business owners should review the agreement thoroughly and seek legal advice to ensure compliance and avoid any potential legal issues in the future.