On July 31st, 2020, the Federal Government announced an extension to the rent subsidy program to cover the month of August. Landlords and tenants who have already applied for the months of April to July can also apply for August but must do so by no later than September 14th 2020. Small business tenants will qualify based on a 70% decline in revenue for the April to June period without reassessing whether they continue to have a 70% decline in revenue in July or August.
New applicants must apply for the April to August periods by the original August 31st 2020 due date.
Small business tenants must meet the following requirements to qualify for the rent subsidy:
- They pay less than $50,000 per month in gross rent per location;
- They have annual revenues of less than $ 20 million on a consolidated basis; and
- They have experienced at least a 70% drop in pre-Covid 19 revenues for the April to June 2020 period compared to the same period in 2019.
Please contact your DMCL business and tax advisor if you need assistance. For further information, please refer to the following links:
Government of Canada – Government Announces New Extension of Rent Relief for Small Businesses: https://www.canada.ca/en/department-finance/news/2020/07/government-announces-new-extension-of-rent-relief-for-small-businesses.html
Canada Mortgage and Housing Corporation – COVID-19: CECRA for Small Businesses: https://www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business