Federal assistance, which is expected to reduce rent by 75% for affected small businesses, will be provided in partnership with the provinces and territories, which have jurisdiction over rents.
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Emergency Assistance Canada For Small Business Commercial Rents Will Provide Repayable Loans To Eligible Commercial Property Owners To Cover 50% Of The Three Monthly Rents Payable By Eligible Small Business Tenants Experiencing Financial Difficulty In April, May and June.
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Loans will be canceled if the owner of the mortgaged property agrees to reduce the rent of eligible small business tenants by at least 75 percent for the corresponding three months under a rent forgiveness agreement, which will include a commitment from do not evict the tenant during the agreement. is in place.
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The small business tenant would cover the rest, up to 25% of the rent.
Affected small business tenants are those who pay less than $ 50,000 per month in rent and have temporarily closed down, or have experienced a decline of at least 70% in revenues prior to COVID-19.
The Canada Mortgage and Housing Corporation will administer and deliver the program.
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The provinces and territories have agreed to share the total costs and ensure delivery of the program. They will cover up to 25% of the costs, subject to the terms of the agreements with Ottawa.
The new program is expected to be operational in mid-May, with owners of commercial buildings lowering their small business tenant’s rents to be paid for April and May, retroactively and for June.
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