Prime Minister Justin Trudeau is announcing significant rent relief for businesses that can’t afford to pay their landlords at a time when their operations are shut down due to the COVID-19 pandemic.
Canada Emergency Commercial Rent Assistance Program
The federal help, expected to lower rent by 75 per cent for affected small businesses, will be provided in partnership with the provinces and territories, which have jurisdiction over rents.
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The Canada Emergency Commercial Rent Assistance for small businesses will provide forgivable loans to qualifying commercial property ownersto cover 50 per cent of three monthly rent payments payable by eligible small business tenants experiencing financial hardship during April, May and June.
The loans will be forgiven if the mortgaged property owner agrees to reduce the eligible small business tenants’ rent by at least 75 per cent for the three corresponding months under a rent forgiveness agreement, which will include a pledge 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.
Who is eligible:
- Affected small business tenants are those paying less than $50,000 per month in rent and
- who have temporarily ceased operations, or have experienced at least a 70-per-cent drop in pre-COVID-19 revenues.
The federal Canada Mortgage and Housing Corp. will administer and deliver the program.
Provinces and territories have agreed to cost-share total costs and ensure the implementation of the program. They will cover up to 25 per cent of costs, subject to terms of agreements with Ottawa.
When will Canada Emergency Commercial Rent Assistance Program be available
It is expected the new program will be operational by mid-May, with commercial property owners lowering the rents of their small business tenant’s payable for the months of April and May, retroactively, and for June.
This report by The Canadian Press was first published April 24, 2020.
The Canadian Press