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

Adam Walker visits the VI Free Daily/PQB News studios. (Peter McCully photo)
AUDIO: Parksville-Qualicum’s new MLA eager to get to work

Adam Walker stops by PQBeat podcast studio to discuss politics and more

Firefighters try to put out a structure fire on the Island Highway in Nanoose Bay early Saturday morning. (Nanoose Bay Volunteer Fire Department photo)
Horses in nearby stable saved as building burns down in Nanoose Bay

Firefighters called out in the early-morning hours Saturday

Nanaimo RCMP sought help in locating Jada Charlie-Carlson, 17. (Nanaimo RCMP photo)
UPDATE: Nanaimo RCMP say 17-year-old girl who was missing has been found safe

Police sought help in locating teen who hadn’t seen her family members for a month

Brian McFadden, vice-president of the Vancouver Island Military Museum, shows elements of a new exhibit there that examines some of the horrors and hardships for women and children in prison camps during First and Second World Wars. (Chris Bush/News Bulletin)
LETTER TO THE EDITOR: Women in prison camps persevered

Letter writer shares her mother’s recollections of prison camp in Java during Second World War

People wearing face masks to help curb the spread of COVID-19 cross a street in downtown Vancouver, on Sunday, November 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. reports 17 COVID deaths, 1,933 new cases as hospitalizations surge over the weekend

There are 277 people in hospital, of whom 59 are in ICU or critical care

An aerial shot of Cedar Valley Lodge this past August, LNG Canada’s newest accommodation for workers at the project site in Kitimat. This is where several employees are isolating after a COVID-19 outbreak was declared last Thursday (Nov. 19). (Photo courtesy of LNG Canada)
Forty-one positive COVID-19 cases associated with the LNG Canada site outbreak in Kitimat

Thirty-four of the 41 cases remain active, according to Northern Health

Brenda Schroeder thought she was reading it wrong when she won $100,000 from a Season’s Greetings Scratch & Win. (Courtesy BCLC)
New home on the agenda after scratch ticket win in Saanich

Victoria woman set to share her $100,000 Season’s Greetings lottery win

Workers arrive at the Lynn Valley Care Centre seniors home, in North Vancouver, B.C., on Saturday, March 14, 2020. It was the site of Canada’s first COVID-19 outbreak in a long-term care facility. THE CANADIAN PRESS/Darryl Dyck
Rapid tests ‘not a panacea’ for care homes, Dr. Bonnie Henry says

B.C. lacks capacity for daily tests of thousands of workers

(Delta Police Department photo)
Cannabis edibles found in Halloween bag lead B.C. police to illegal lab

Delta police arrested a man and a woman while executing a warrant at a residential property Nov. 20

A woman being arrested at a Kelowna Value Village after refusing to wear a mask on Nov. 22.(@Jules50278750/Twitter)
VIDEO: Woman arrested for refusing to wear mask at Kelowna Value Village

RCMP claims the woman was uncooperative with officers, striking them a number of times and screaming

B.C. Liberal MLA Shirley Bond questions NDP government ministers in the B.C. legislature, Feb. 19, 2020. (Hansard TV)
Cabinet veteran Shirley Bond chosen interim leader of B.C. Liberals

28-member opposition prepares for December legislature session

Motorists wait to enter a Fraser Health COVID-19 testing facility, in Surrey, B.C., on Monday, November 9, 2020. THE CANADIAN PRESS/Darryl Dyck
COVID-19: What do rising positivity rates mean for B.C.? It’s not entirely clear

Coronavirus cases are on the rise but the province has not unveiled clear thresholds for further measures

Most Read