Federal Government to offer 75% rental relief for businesses affected by the pandemic

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.

Courtesy of Maclean’s (AP Photo/Matt York)

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.

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