In a response to help the families and small businesses being hit due to the pandemic of COVID-19, Canada’s Prime Minister Justin Trudeau has announced that applications are being accepted for the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses. This comes as a measure to protect jobs and small businesses and give assistance to the property owners so that they can give relaxation to small business tenants as a help in these difficult times.
Under this program, the property owners with retrospective effect will reduce the rent by at least 75% for the months of April and May. They will reduce the rent for June too for their small business tenants. Here, 50% of the rent will be covered by CECRA and 25% by the tenant while the owner has to bear the rest 25% of the rent.
This will not only help the small businesses to cope with the struggle due to pandemic but will also make financial sense for the property owners as their success depends upon the success of their tenants. If the tenant goes bankrupt, the property owner gets nothing as the rental income. However, with this provision, both the property owner as well as the tenant will be benefitted.
Canada’s Government has been closely working with provinces and territories to devise strategies that would keep financial hardships at bay and keep Canadians on the payroll. This is a classic example of what an ideal country would do to protect its citizens with maximum potential and also explains why people are attracted in migration to Canada. The country takes the responsibility of all its people, irrespective of their financial status and strives to strike the beneficial policies for all.