Now we can help tenants apply for Canada Emergency Rent Subsidy directly with CRA

December 7, 2020 Posted by adm_2020 In blog No Comments

Previously, landlords had to apply the subsidy (CERCA) with CMHC and tenants were at the mercy of the landlords for the rent reduction. Now CERS has replaced CERCA which will allow tenants to apply this subsidy directly with CRA

Canadian businesses, non-profit organizations, or charities who have seen a drop in revenue due to the COVID-19 pandemic may be eligible for a subsidy to cover part of their commercial rent or property expenses, starting on September 27, 2020, until June 2021.

This subsidy will provide payments directly to qualifying renters and property owners, without requiring the participation of landlords.

If you are eligible for the base subsidy, you may also be eligible for lockdown support if your business location is significantly affected by a public health order for a week or more.

A business can obtain this subsidy on up to $75,000 (per location up to a maximum of $300K for all locations combined) of qualified business expenses which are listed below:

If you rent the qualifying property, your eligible expenses are:

  • Rent (including rent based on a percentage of sales, profit or similar criteria)
  • Amounts required to be paid or payable by you under a net lease (either to the lessor or a third party). These required amounts might include:
    • base rent
    • regular payments for customary operating expenses, such as
      • property insurance
      • utilities
      • common area maintenance
    • property and similar taxes, including school and municipal taxes
    • regular payments to the lessor for customary ancillary service

If you own the qualifying property, your eligible expenses are:

  • Property and similar taxes
    • Includes school taxes and municipal taxes, if these are part of your property tax assessment
  • Property insurance
  • Interest on commercial mortgages for the purpose of purchasing real property
    • Your mortgage amount cannot exceed the lesser of:
  • the lowest total principal amount secured by one or more mortgages on the property at any time after it was acquired
  • the cost amount of the property.

Need help with this subsidy? Give us a call at 416-414-3100.

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