Justin Trudeau announces small businesses in Canada will get 75% of their rent covered
Small and medium businesses across Canada can expect to have 75 per cent of their rent covered for the months of April, May and June, Prime Minister Justin Trudeau announced today.
Trudeau provided more details of the Canada Commercial Rent Assistance program launched last week that will see rents lowered for small and medium businesses across the country.
PM Trudeau announces Canada Emergency Commercial Rent Assistance:— CPAC (@CPAC_TV) April 24, 2020
—agreement w/ all provinces & territories
—75% rent cut for affected small businesses paying less than $50K rent/month
—covers April, May, June
—govt to cover 50%, property owners to cover 25% #COVID19 #cdnpoli pic.twitter.com/PxYIJFB5gu
The plan is designed to help businesses have been strongly affected by the pandemic. Impacted 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 program will provide forgivable loans to qualifying commercial property owners to 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.
In order for the loans to be forgiven, the property owner must agree 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 term not to evict the tenant while the agreement is in place.
The small business tenant would then be responsible for covering the remaining 25 per cent of the rent.
Non-profits and charities are also eligible for the program.
Trudeau said that more details for larger businesses will be announced in the coming weeks.
Join the conversation Load comments