COVID-19: Government of Canada Announces Newly Proposed Canada Emergency Commercial Rent Assistance Program
Further to our most recent newsletter which you can find here, the Prime Minister announced on April 16, 2020, that the Government of Canada has:
- Expanded the Canada Emergency Business Account (CEBA) to businesses that paid between $20,000 and $1.5 million in total payroll in 2019. This new range will replace the previous one of between $50,000 and $1 million, and will increase the number of small businesses who are eligible for the CEBA to cover non-deferrable operating costs.
- Announced its intent to introduce the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses. The program will seek to provide loans, including forgivable loans, to commercial property owners who in turn will lower or forgo the rent of small businesses for the months of April (retroactive), May, and June.
In addition, on April 17, 2020, the Prime Minister announced that it will be expanding eligibility for the Business Credit Availability Program, which provides financing to businesses to help them maintain their operations and keep employees on the job. The support will be available to medium-sized businesses with larger financing needs, beginning with companies in Canada's energy sector, to help them maintain operations and keep their employees on the job.
We will continue to monitor this rapidly evolving area and provide you with further updates. Please note that this bulletin is intended for informational purposes only and does not constitute legal advice or an opinion on any issue. If you have any questions, please contact the author or your Miller Canfield lawyer.
This information is based on the facts and guidance available at the time of publication, and may be subject to change.
