The Canada Revenue Agency announced a commercial rent subsidy program in response to COVID-19, and effects of this pandemic on the economy. The CERS (Canada Emergency Rent Subsidy) will cover businesses, non-profits & charities, & will help with up to 65% of their eligible expenses. The CRA began processing claims on November 30. These claims are to be retroactive to September 27, and covering until June 2021. Eligible expenses include commercial rent, property taxes (including school & municipal taxes), property insurance, & commercial mortgage interest.
In addition, organizations that were shut down or had their activities greatly restricted by public health orders will be additionally supported by something called “Lockdown Support”, which is a 25% top-up subsidy, which means that overall they could receive support of up to 90% in rent or property expenses.
Employers that have been impacted by COVID-19 will now be able to receive support during the winter and the second wave of this virus. Deputy Prime Minister and Minister of Finance Chrystia Freeland states, “We will continue to do what it takes to support Canadians through this crisis”. Only half of the businesses that closed during the March/April shut-down re-opened in July, according to Statistics Canada.
Luckily, Canada’s housing market has been resilient through this pandemic, however consistent stress in the retail sector of the industry eventually seeps into the residential property market. Davelle Morrison, Bosley Real Estate Broker, shares their thoughts: “Commercial strips affect residential properties. Imagine moving into a neighbourhood where a significant number of businesses are closed and storefronts are boarded up; it’s not good for residential property values.”
This CRA supported rent subsidy will greatly help commercial tenants, large or small, and the real estate industry overall. Your business may qualify, contact us today!