Small and medium businesses are getting a new rent relief program in Canada.
On Friday, Prime Minister Justin Trudeau announced the Canada Emergency Commercial Rent Assistance, a rent relief program to help businesses who are struggling to pay their landlords due to the COVID-19 pandemic.
“Small businesses are having trouble making rent because of COVID-19,” said Trudeau, who added that the federal government reached an agreement with provinces and territories to lower rent by 75% for small and medium sized businesses.
This will be applied for April, May, and June.
Trudeau said that the government will cover 50% of the reduction, with property owners covering the rest.
Businesses paying less than $50,000 per month in rent and have temporarily closed or suffered a 70% drop in pre-coronavirus revenues, as well as non-profit organizations, will be eligible for the assistance program.
For larger businesses that need rent support, Trudeau said he will be announcing further information soon.
Trudeau said that later on Friday, he will be meeting with provincial leaders regarding the gradual reopening of the economy.
He said it won’t happen overnight, “it will take time.”
This week, Trudeau also announced the Canada Emergency Wage Subsidy applications will open next week.
Trudeau said the federal government is launching a calculator on the Canada Revenue Agency website to help businesses calculate what they are covered for through the Canada Emergency Wage Subsidy.
Applicants will be able to access the Subsidy starting on Monday, April 27, according to the prime minister.
Earlier this month, on April 6, the Canada Emergency Response Benefit applications opened.
According to the federal government, as of April 21, 9.2 million Canadians applied for the Benefit. The total dollar value of CERB benefits paid so far is $21.3 billion.