CECRA Commercial Rent Relief Program

The unprecedented measures taken to address the COVID-19 pandemic have had a profound impact on small businesses in Saskatchewan, with numerous small businesses having had their operations shut down by health orders implemented to prevent the spread of the virus.  This has created significant challenges for many struggling small businesses that have continued to accumulate fixed costs during the pandemic period, in the face of revenues that have disappeared. 

To address the issue of small businesses affected by COVID-19 that require assistance in meeting their commercial rent obligations, the Federal Government and the Government of Saskatchewan have partnered to create the Canada Emergency Commercial Rent Assistance (the “CECRA”) program for small businesses.  The CECRA is a program administered by the Canada Mortgage and Housing Corporation designed to give relief to small business tenants and commercial landlords by providing forgivable loans that cover 50% of a small business’s rent for the months of April, May, and June 2020.  These forgivable loans are provided on the condition that the commercial landlord enter into an agreement with the small business tenant to forgive at least 25% of the tenants rent obligations over these months.

The eligibility criteria for the program requires that the small business tenant pays no more than $50,000 in monthly gross rent, generates no more than $20 million in gross annual revenues and has seen a 70% decline in pre-COVID-19 revenues.  To apply for the CECRA, the commercial landlord will need to enter into a rent reduction agreement with the small business tenant, as well as provide attestations from both the commercial landlord and the small business tenant concerning program eligibility.

Our office is available to assist both small business tenants and commercial landlords in providing advice on the requirements of the CECRA program and in preparing the necessary agreements to apply for program funding. 

To apply, visit the government’s application portal.

For details on the program, please contact James T. Sproule, James P. Gorkoff or David J. Ukrainetz for assistance.

About McKercher LLP:

McKercher LLP is one of Saskatchewan’s largest, most established law firms, with offices in Saskatoon and Regina. Our deep roots and client-first philosophy have helped our firm to rank in the top 5 in Saskatchewan by Canadian Lawyer magazine (2019/20). Integrity, experience, and capacity provide innovative solutions for our clients’ diverse legal issues and complex business transactions.

This post is for information purposes only and should not be taken as legal opinions on any specific facts or circumstances.  Counsel should be consulted concerning your own situation and any specific legal questions you may have.

For more information and resources regarding COVID-19 visit https://www.mckercher.ca/covid-19