Government Provides Commercial Rent Relief Program Details

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Federal Team

Today, Prime Minister Trudeau provided details on the Emergency Commercial Rent Assistance program to provide 75% rent support to small businesses unable to pay their rents because of COVID-19. The program will be delivered through forgivable loans to landlords.

Developing the program required the government to negotiate with all provinces and territories in Canada as the responsibility for commercial rent agreements is provincial jurisdiction.

Details include:

Eligible businesses are those paying less than $50,000 per month in rent and who have temporarily ceased operations or have experienced at least a 70% drop in pre-COVID-19 revenues.
This support will also be available to non-profit and charitable organizations.
Forgivable loans will be offered to qualifying commercial property owners to cover 50% of monthly rent payments that are payable by eligible small business tenants in 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% 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 program will be available to commercial property owners in mid-May and will be retroactive.
The small business tenant would cover the remainder, up to 25 % of the rent.

Prime Minister Trudeau said there is more to come for businesses with larger rents.

The Prime Minister and the provinces will meet today to further discuss the gradual reopening of the Canadian economy.

Federal Engagement

‍Consult the Sussex COVID-19 Guide for information on supports made available across the Federal, Provincial and Municipal Governments.

As the details of the programs announced today become available, let Sussex help connect you with the right people in government to help your organization get through these extraordinary times.

For more detail, please reach out to your Sussex representative directly or to the Federal Government Relations Team.

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