PM promises small businesses support among coronavirus pandemic
PM Justin Trudeau has promised support for small businesses among difficulties caused by coronavirus pandemic. The state will support small and medium-sized businesses across Canada by covering up to 75% of their rent. Moreover, the government expects property owners to cover 25%, with the government to cover 50%. The Prime Minister has also confirmed that all provinces and territories agreed to the proposal.
But that’s not all. Small and medium businesses are not the only ones eligible for support. Non-profit organisations and charities will be able to ask for support from the government. Regarding larger businesses, the PM said the government will announce further details and maybe even additional ad-hoc measures next week.
‘Listening to the concerns of Canadians’
Furthermore, the Prime Minister remarked how such measures are not merely aimed at withstanding the crisis, but at enabling the economy to rebound once crisis is over. PM Trudeau says: ‘A big part of this work means listening to the concerns of Canadians and making adjustments as we go along’. This also means that the government is actively looking to stimulate the economy out of a possible recession.
The announced support plan targets businesses which have been experiencing hardship because of the pandemic. These are businesses paying less than $50,000 per month in rent, and that have experienced up to 70% drop in revenues since the coronavirus outbreak. Businesses which have ceased operations due to pandemic are also eligible to apply for the state support measure.
The support program will provide forgivable loans to commercial property owners which qualify for such criteria. The program will cover three monthly rent payments for up to 50 per cent of the rent. The affected businesses must have been experiencing financial hardship in the months of April, May, and June. Moreover, in order for such loans to be forgiven, the property owner must agree to reduce the tenant’s rent by at least 75%.
The Prime Minister announced such support as part of the Canada Emergency Commercial Rent Assistance. Such program aims at helping thousands of Canadians getting through the hardships of the pandemic.