Yet another reason why your Canadian dollars will be devalued domestically: Introducing the Canada Emergency Commercial Rent Assistance (CECRA) – June 8, 2020,
I personally find it disgusting what CMHC has done to the Canadian housing market but it doesn’t really make sense complaining at this point, because I’ve come to the conclusion that Canadians will simply have to learn things the hard way.
I can’t predict what the market price for the Canadian dollar will be, but domestically, the CMHC is putting the Canadian ta payer in a very bad position
Canada Emergency Commercial Rent Assistance (CECRA) BRITISH COLUMBIA Quick Facts
CECRA will provide forgivable loans to qualifying commercial property owners, whether they have a mortgage on their property or not. The loans will cover 50 per cent of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, and June.
The loans will be forgiven if the qualifying property owner agrees to reduce the small business tenants’ rent by at least 75 per cent under a rent reduction agreement, which will include a term not to evict the tenant while the agreement is in place. The small business tenant would cover the remainder, up to 25 per cent of the rent.
Impacted small business tenants are businesses that are paying less than $50,000 per month in gross rent in a given location, with annual revenues of less than $20 million (at the ultimate parent level), and who have experienced at least a 70 per cent drop in pre-COVID-19 revenues.
Canada Emergency Commercial Rent Assistance (CECRA) | covid.smallbusinessbc.ca
The BC website when I did my research made theirs the easiest to understand, some of the other CECRA information I read was very confusing, which for myself a business owner would make me ignore it. The desperate small business owners obviously have taken the government up on the CECRA offer, but apparently the large companies which have the resources to get their lawyers to read through the fine details have been slower to jump on board.
When your personal assets are not tied to your business you approach government negotiations differently. The truth of the matter and what the article below is not telling you is what is defined as a small business owner, most people imagine a brick and mortar store when they think of small business, but I won’t go into the details, because what’s done is done.
America per capita, as far as I know, has actually spent more COVID-19 relief than Canada has, however, the United States has loosened regulations while Canada continues to add regulations. There is a lot of what I would call dead stimulus happening in Canada, that as an investor you’ll want to pay close attention too.
This assumption by the government that things will return to normal is a huge bet on their part, we’ll see if it pays off.
Interesting times ahead!