Today, Prime Minister Justin Trudeau launched the highly anticipated Canada Emergency Commercial Rent Assistance program announced earlier in order to help small businesses cover their rents for April, May and June.
Canada Emergency Commercial Rent Assistance program
The Prime Minister noted that the federal government has reached a cost-sharing agreement with all provinces and territories to implement the Canada Emergency Commercial Rent Assistance program for small businesses that have been hit particularly hard by the COVID-19 pandemic. The program will provide forgivable loans to qualifying small commercial property owners to cover 50 per cent of monthly rent payments for April, May and June. The loans will be forgiven if the owner agrees to reduce eligible businesses’ rent by at least 75 per cent for the three months.
All businesses that have had to temporarily cease operations and pay less than $50,000 per month in rent or have experienced at least a 70 per cent drop in pre-COVID-19 revenues will be eligible for the rent relief. The program is also being made available to non-profits and charities who have been impacted by the pandemic. For more details please see: link
More updates on rent relief for larger corporations are expected to be announced in the coming days.
Reopening the Economy
Trudeau said that he will discuss the reopening of the Canadian economy during his upcoming First Minister’s meeting, emphasizing that Canada is a large country with a vast economy, and it will take time for the country get back to the status quo. He pointed out that his government will be working closely with all provinces and territories to establish principles and guidelines to gradually reopen the economy. “We are not out of the woods yet, and it is very important for all Canadians to follow the recommended instructions provided by our public health officials,” he said. “That is the only way for us to make it through this together.”
*Above summary by Enterprise Canada