The government has successfully collaborated with provinces and territories in implementing a rent assistance program that will help small businesses in their fight against the COVID crisis.
The Canada Emergency Commercial Rent Assistance Program will help cover rents of businesses for April until June. This will provide commercial property owners forgivable loans to cover 50% of the three monthly payment.
The loans will be forgiven if landlords will agree to reduce rent for eligible businesses by at least 75% and pledge not to evict its tenants.
Businesses eligible for this assistance are:
- Paying less than $50,000 per month in rent
- Temporarily ceased or shut down its operations
- Have experienced at least a 70% drop revenues (pre-COVID-19)
The program has been made available to charities and non-profit organizations as well.
The government is calling on landlords to be as flexible until the program will be operational which is estimated to be on mid-May.