At the request of a number of private practice members, the CPA solicited an expert opinion on what a tenant is obligated to provide their landlord for the Canada Emergency Commercial Rental Assistance (CECRA). Per our accountants at Welch LLP:
The CECRA is assistance provided to the landlord – not the tenant. For the landlord to qualify for the assistance, it must be the case that the tenant has had a 70% decline in revenue due to the COVID-19 pandemic. It must also be the case that the tenant pays no more than $50,000 per month in rent and the tenant’s annual gross revenue must be under $20 million.
1) The tenant is required to provide the landlord with a “Tenant Attestation”. A sample of the attestation is available here.
2) The landlord must also enter into a rent reduction agreement with the tenant and a copy of this agreement must be provided by the landlord with its application.
3) The tenant must also provide its Business Number to the landlord.