Feds reach deal to lower rent by 75% for small businesses affected by COVID-19

Federal, provincial and territorial governments have reached a deal to help small businesses pay rent during the COVID-19 crisis.

It applies to businesses that are paying $50,000 in rent or less. Those businesses will only have to pay 25% of their rent in April, May and June. The landlord will absorb the other 25% of rent and the Federal government and Provincial government will absorb the other 50% of rent.

“We’ve reached agreements with all provinces and territories to lower rent by 75% for small businesses that have been affected by COVID-19 for April, May, and June. The government will cover 50% of that reduction, with the property owner covering the rest,” said Prime Minister Trudeau Friday.

Small businesses paying less than $50,000 per month on rent, will be eligible to receive this support
Small businesses paying less than $50,000 per month on rent, will be eligible to receive this support.

“If you are a small business that has been strongly affected by COVID-19 and you’re paying less than $50,000 per month on rent, you will be eligible to receive this support. It will also be there for nonprofits and charitable organizations that are struggling right now,” said Trudeau.

The Prime Minister says he knows small businesses have been hard hit and that even with the wage subsidy, fixed costs for these businesses are “a real challenge.”

Rent support for large businesses coming soon

“We will also have more to say in the coming days about rent support for larger businesses,” said Trudeau.

More to come…