Commercial rent relief
Updated December 18, 2020
The Government of Canada is taking action to protect Canadians and the economy from the impacts of the global COVID-19 pandemic. On June 1, 2020, the Minister of Environment and Climate Change Canada, the Honourable Jonathan Wilkinson, announced a program of rent relief for Parks Canada’s commercial lessees and licensees for the months of April, May and June 2020. The Government of Canada is extending this rent relief to the months of July and August 2020. In December 2020, Parks Canada extended this rent relief for the month of September 2020.
This relief comes in the form of a waiver of 37.5% of annual rent (or 75% of April , May, June, July, August, and September 2020 for rents calculated and charged monthly) for eligible commercial lessees and licensees. These relief measures are aligned in principle with the Canadian Emergency Commercial Rent Assistance (CECRA) program.
In order to be eligible, commercial leases and licences of occupation must meet the following specific criteria:
- The lessee/licensee pays gross monthly rent not exceeding $50,000 per property, or gross annual rent not exceeding $600,000 per property, or an equivalent pro rated amount for agreements with terms/periods less than one year;
- The lessee/licensee generates no more than $20M in consolidated gross annual revenues calculated on a consolidated basis (at the ultimate parent level);
- The commercial operation was closed due to provincial or Parks Canada restrictions and/or is experiencing a 70% drop in pre-COVID revenues for April, May and June; and
- The lessee/license is still valid (i.e. the agreement was not surrendered/relinquished.
The following are ineligible for Parks Canada’s Commercial Rent Relief Program:
- Individuals, or entities owned by individuals, holding political office; or
- An individual or entity under criminal prosecution as of March 1, 2020; or
- An individual or entity that has a going concern or solvency issue as of March 1, 2020 and has made any filing for relief or protection under the Companies’ Creditors Arrangement Act (Canada) or any other bankruptcy or insolvency legislation of any jurisdiction; or
- Leases or licences that commence on or after July 1, 2020.
If you are a commercial lessee or licensee at a Parks Canada place, you will have already received documentation outlining the eligibility requirements and application process. If you have already submitted an application for April, May and June 2020, you do not need to reapply for the July, August and September 2020 extension period.
For additional information, please contact your usual real property contacts for your business or send an email to email@example.com for assistance.