Apr 20, 2020
Canada launches rental assistance program for small businesses
Apr 20, 2020
As the Covid-19 crisis continues to force business closures across Canada, the Canadian Prime Minister Justin Trudeau announced the launch of a new rent support program to assist small and medium-sized businesses.
Called 'Canada Emergency Commercial Rent Assistance' (CECRA), the program will aim to provide loans to commercial property owners, who can in turn offer rent reductions for other small businesses.
The program will offer assistance for the months of April (retroactive), May, and June.
The Canadian government is currently working with the provinces and territories to increase rent support for businesses and will announce more details on the program at a later date.
Additionally, the government announced more help to small businesses, who Trudeau described as “the backbone of our economy," by expanding the Canada Emergency Business Account (CEBA).
Eligible business will now include those who paid between $20,000 and $1.5 million in total payroll in 2019, compared to the previously announced criteria of between $50,000 and $1 million.
The loan will be distributed through CEBA, which offers eligible businesses a $40,000 loan with $10,000 in forgiveness. To date, more than 195,000 loans have been approved, which extends to more than $7.5 billion in credit to small businesses.
“We will always be there to support our Canadian businesses. That is why we are working closely with the business community to make sure that our emergency measures are as effective and inclusive as possible," said the Prime Minister.
“Expanding the Canada Emergency Business Account and making sure businesses can afford their rent is the smart thing to do. Small businesses are the backbone of our communities, and will keep our economy strong in this uncertain time.”
Canada’s Covid-19 Economic Response Plan has committed more than $107 billion in support to Canadians and businesses facing hardship as a result of the pandemic.
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