Commercial Rent Relief Program

The Oregon Legislative Emergency Board on January 8, 2021, allocated $100 million to fund a new Commercial Rent Relief Program to provide financial assistance to small businesses and landlords adversely affected by economic conditions as a direct result of the COVID-19 pandemic.

The program will open for applications on March 8, 2021

The program targets landlords with tenant businesses with 100 or fewer employees who are behind on lease payments or any forgiven base rent amounts that have been negotiated due to COVID-19. The program will require both business tenant and property owner participation. The program includes additional protections for tenants, such as non-eviction clauses, and a waiver of penalties and interest.

Who Can Apply?

Landlords are the ones who initially apply, but will need to have the tenant provide business information to determine application eligibility, and both landlord and tenant will ultimately provide information and sign a grant agreement. The applicable small business tenant must:

  1. be a for-profit business
  2. lease property in the state of Oregon
  3. be headquartered in the state of Oregon
  4. employ 100 or less employees per lease as of February 28, 2021
  5. be actively registered to do business in the state of Oregon with the Secretary of State
  6. be compliant with all federal, state, and local laws
  7. not be a publicly-traded company
  8. be open for business or intends to reopen for business when restrictions are lifted (if applicable) at the leased location.

Landlords must not be past due on federal, state, or local taxes as of December 31, 2019. Landlords with multiple properties and/or tenants may make multiple applications, one for each tenant business.

How Much is the Grant?

The grant can be up to $100,000 per each business tenant, and not more that $3 million for each landlord. The grant amount covers only base rent that is in arrears do to COVID-19 impacts or restrictions.

What Will the Grant Pay For?

Lease payments that are in arrears due to Covid19 from March 1, 2020 to February 28, 2021.

Lease payments that were in the arrears but amortized due to Covid-19 from March 1, 2020 to February 28, 2021.

Program Eligibility

Oregon Businesses (tenant) are eligible if:

  • Delinquent or past due on lease payments 3/1/20 – 2/28/21.
  • Headquartered in Oregon.
  • Full-Time Employees equals 1-100.
  • Landlord and tenant are willing to apply together.
  • Registered to do business in the state.
  • Current on taxes.
  • Is opened or intends to reopen after any applicable restrictions are lifted.

Program Ineligibility

Oregon Businesses (tenant) are NOT eligible if

  • Publicly traded companies.
  • Non-profit organizations.
  • Residential tenants.
  • Governmental entities.
  • Not registered to do business in the state.
  • Not current on taxes.

Maximum Grant Awards

The maximum grant per lease is up to $100,0000.

The maximum total grants that may be awarded to a landlord (at the amount of past due lease payments for all tenants) is $3 million.

How Do I Apply?

The program will open for applications with a link on the website on March 8, 2021. The application portal will be open for two weeks, and all eligible applications received will be put into a lottery selection system to determine which will move on for grant approval. This is not processed as a first-come-first-served program.

The application process will require both the tenant and the landlord to contribute and sign documents. The landlord will complete the initial online application, and can complete one application for each of their tenants if they have multiple tenants.

Business Oregon will notify applicants if they have been selected, and will review additional information for accuracy and compliance with the program. Upon completion of a successful compliance review, Business Oregon will mail a check to the landlord.

Source: Oregon Business

Read more news at SVN Bluestone & Hockley