In this photo taken on March 25, 2020, streets of downtown Victoria were quieter than usual in the wake of physical isolation mandates from the provincial and federal governments. (Arnold Lim / Black Press)

In this photo taken on March 25, 2020, streets of downtown Victoria were quieter than usual in the wake of physical isolation mandates from the provincial and federal governments. (Arnold Lim / Black Press)

Businesses hard-hit by COVID-19 to get 75% in rent cost relief: Trudeau

Government to cover 50 per cent, with expectation that 25 per cent be absorbed by property owners

The federal government has announced rent relief for small- and medium-sized businesses hard-hit by COVID-19, with 50 per cent supplemented by governments and an expectation that property owners absorb the other 25 per cent.

Wearing a red tie in honour of the victims in the recent Nova Scotia shooting rampage, Prime Minister Justin Trudeau revealed details about the Canada Emergency Commercial Rent Assistance program on Friday (April 24) outside of Rideau Cottage in Ottawa.

“If you had to close up shop because of public health recommendations, if you don’t have a lot of money coming in because people aren’t spending much these days, you may be worried about keeping your office space,” Trudeau said.

The rental assistance was first announced on April 16, but the federal government needed to convene with individual provincial leaders, who have jurisdiction over rental rules.

“The government will cover 50 per cent of the reduction, with the property owner covering the rest,” Trudeau said.

To be eligible, small and medium-sized businesses must have a monthly rent cost of less than $50,000 and be experiencing at least a 70-per-cent decrease in revenue due to the pandemic.

Non-profits and non-government organizations are also eligible. Rent support will be retroactive for April, and be available for May and June.

The program will operate through a rent forgiveness agreement between the business owner and mortgaged property owner. The agreement must stipulate that the property owner will reduce rent by at least 75 per cent over the three months, as well as pledge not to evict the tenant while the agreement is in place.

Trudeau said business owners who cannot afford the remaining 25 per cent in rental costs can apply for the one-time business loan announced in March, which allows for eligible businesses to borrow $40,000 with one-quarter forgiveness.

Trudeau pledged that options for larger businesses will also be made available in coming weeks.

This week, Saskatchewan announced it would be reopening some businesses on May 4, as part of a five-phase plan.

Starting May 4, dentist offices, optometry clinics and physical therapy providers can open, while some retail stores might be allowed to operate as of May 19.

The rental assistance comes as newly released data from the federal government shows that there have been more than seven million unique applications for the Canada Emergency Response Benefit – the federal emergency aid program which gives eligible workers $2,000 a month in funds amid the pandemic.

That means that $22.4 billion has been paid out through the program, which has a budget of $24 billion.

Trudeau is scheduled to hold a conference call with provincial and territorial premiers this afternoon, at which he is expected to raise another issue that is under provincial jurisdiction — the tragedy unfolding at under-staffed long-term care homes where more than half of Canada’s deaths from COVID-19 have occurred.

– with a file from The Canadian Press


@ashwadhwani
ashley.wadhwani@bpdigital.ca

Like us on Facebook and follow us on Twitter.

CoronavirusJustin Trudeau

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The CVRD will reconsider its policies on fireworks after receiving complaints. (File photo)
Cowichan Valley Regional District considers options for fireworks after receiving complaints

Distict only allows fireworks on Halloween and New Year’s Eve, with a permit

Ben Maartman, left, and Murray McNab are running for regional director for Area H North Oyster-Diamond in a Cowichan Valley Regional District byelection later this month. (Photos submitted)
Preliminary Area H byelection results show Maartman up by seven votes, McNab to ask for recount

Results of the by-election to by finalized by noon on Tuesday, December 1

Freighter anchored off Kin Beach in Chemainus. (Photo by Don Bodger)
Cowichan MP hosting virtual town hall on freighter anchorages issue

Residents can participate through MP’s website or Facebook page Dec. 3

Santa will be in Honeymoon Bay on Dec. 13. (File photo)
Santa to visit Honeymoon Bay on Dec. 13

Families must call ahead due to pandemic

A B.C. Ambulance Service paramedic wearing a face mask to curb the spread of COVID-19 moves a stretcher outside an ambulance at Royal Columbia Hospital, in New Westminster, B.C., on Sunday, November 29, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C. records deadliest weekend of COVID-19 pandemic with 46 deaths; more than 2,300 cases

Provincial health officer Dr. Bonnie Henry provides COVID-19 update

Fossil finds at Mt. Stephen. (Photo: Sarah Fuller/Parks Canada)
Extreme hiking, time travel and science converge in the Burgess Shale

Climb high in the alpine and trace your family tree back millions of years – to our ocean ancestors

Kettle bells sit aligned in an indoor fitness studio. (PIxabay.com)
1 COVID-19 case at a B.C. fitness studio leads to 104 more infections, 6 school exposures

According to case data released by Fraser Health, one case of the novel coronavirus carries a big impact

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Vehicles drive past a display thanking essential workers in Burnaby, B.C. on Sunday, Nov. 29, 2020. THE CANADIAN PRESS/Marissa Tiel
B.C. changing COVID-19 case reporting as virus spread continues

Manual counting takes more time, leads to errors

Black Press Media and BraveFace have come together to support children facing life-threatening conditions. Net proceeds from these washable, reusable, three-layer masks go to Make-A-Wish Foundation BC & Yukon.
Put on a BraveFace: Mask fundraiser helps make children’s wishes come true

From Black Press Media + BraveFace – adult, youth and kid masks support Make-A-Wish Foundation

Christy Jordan-Fenton is the co-author of the book Fatty Legs, which has been mentioned amid the controversy of an Abbotsford school assignment on residential schools.
Co-author of residential schools book condemns controversial Abbotsford class assignment

Children’s book mentioned amid controversy at W. A. Fraser Middle School

Kootenay East MLA Tom Shypitka takes over as energy and mines critic for the B.C. Liberal opposition. Kelowna-Lake Country MLA Norm Letnick (right) moves from health critic to assistant deputy speaker. (Hansard TV)
B.C. Liberals pick critics to take on Horgan’s NDP majority

Interim leader Shirley Bond takes seniors, long-term care

Left to right: A screenshot of NTC nurse navigator Lesley Cerney, FNHA regional mental health manager Georjeana Paterson and Island Health’s medical health officer Dr. Charmaine Enns addressing Ehattesaht community members from Ehatis reserve in a Facebook live update. (Ehattesaht First Nation/Facebook)
Medical team sent to Ehatis reserve near Zeballos to guide community through COVID outbreak

17 cases, eight recoveries and no hospitalizations as Island Health praises First Nation’s response

Most Read