• KD Wray

April 24th Commercial Rent Assistance

April 24, 2020

More details were announced on April 24th at the Prime Minister’s press conference

The following details are taken from the press conference, government and media news releases and are conceptual in nature as legislation is pending, it is expected to be presented to Parliament next week

Commercial rent will be lowered for qualifying small businesses with monthly rent less than $50,000 and that have temporarily ceased operations or have experienced at least a 70% drop in pre-COVID-19 revenues either by comparing

Year over year, for example, April 2020 vs April 2019 or

Comparing to the average revenues in January 2020 and February 2020

Not for profit and charities were mentioned in the press conference and news release as being eligible as well

Ontario estimates the cost of the program to be $900 million

The reduction in rent could be up to 75% if the landlord participates as follows:

The federal and provincial \ territorial governments will share the cost of 50%

The landlord will cover 25%

The tenant will cover 25%

The program will cover the months of April, May and June

The program will be administered by the Canada Mortgage and Housing Corp. by way of a forgivable loan that would cover 50% of the rent

A loan will be made to the “mortgaged property owner”, the loan is forgivable if the property owner agrees to reduce the “eligible small business” tenants’ rent by at least 75% for the three months under the rent forgiveness agreement, which will include a pledge not to evict the tenant while the agreement is in place

Provincial and territorial governments will enforce the rent reduction as it is their jurisdiction

The program is expected to be operational by the middle of May, rent will be retroactively reduced for April and May

The Prime Minister also mentioned that rent support for larger businesses is forthcoming

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