OTTAWA, O.N. – The Federal Government has provided more details about the new Canada Emergency Commercial Rent Assistance program for small businesses.
This program will lower rent by 75 percent for small businesses that have been affected by COVID-19. Small businesses that have seen a drop in revenue of 70 percent will qualify for the program.
The Government is also providing further details on the program:
- The program will provide forgivable loans to qualifying commercial property owners to cover 50 percent of three monthly rent payments that are payable by eligible small business tenants who are 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 percent 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 cover the remainder, up to 25 percent of the rent.
- Impacted small business tenants are businesses paying less than $50,000 per month in rent and who have temporarily ceased operations or have experienced at least a 70 percent drop in pre-COVID-19 revenues. This support will also be available to non-profit and charitable organizations.
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The Government has not said how businesses and landlords can apply for the program or when the funding will be available.