COCHRANE— The federal government is taking steps to provide rent relief for small businesses who are struggling to make ends meet due to their operations being heavily impacted or shut down because of the COVID-19 pandemic.
The Canada Emergency Commercial Rent assistance for small businesses will provide forgivable loans to qualifying commercial property owners to cover 50 per cent of three months' worth of rent payments Prime Minister Justin Trudeau announced Friday (April 24.)
"More help is on the way for our small businesses across the country. They are the backbone of our families, our communities, and our economy," Trudeau said. "That is why we will continue working closely with provinces and territories to make sure that Canadian businesses have the support they need during these difficult times.”
The loan is expected to help small business tenants survive the economic hardships created by the pandemic by helping cover rent from April to June for small businesses.
Cochrane Chamber of Commerce vice president and owner of Mehtab East Indian Cuisine and Joe's Liquor Jag Thind said it has been challenging adapting to the economic upheaval created by the COVID-19 virus.
“It’s been lots of ups and downs— mostly downs,” Thind said.
Thind has transitioned his 95 seat restaurant in to take out and delivery services only to survive the pandemic.
“Changing is not easy, but it’s alright I can’t complain because it's with everybody,” Thind said. “It’s better than close down.”
The Canada Emergency Commercial Rent assistance loans will be forgiven if the mortgaged property owner agrees to reduce the eligible small business tenants' rent by at least 75 per cent for the three corresponding months under a rent forgiveness agreement.
Small business tenants are expected to cover the remainder of rent, up to 25 per cent.
Small business tenants who can access the program are those paying less than $50,000 per month in rent and who have temporarily ceased operations or have experienced at least a 70 per cent drop in pre-COVID-19 revenues. The program is also available to charities and non-profit organizations.
The program is expected to be operational by mid-May and will be administered and delivered by the federal Canada Mortgage and Housing Corp.
Thind said he appreciates the announcements coming from the provincial and federal governments in regards to support for small businesses.
“They’re trying their best,” Thind said. “It’s taking some time for everybody to understand how they can deal with it.”
The virus has been affecting local businesses for almost two months now, he said, adding that he recently began accessing the Canada Emergency Wage Subsidy that has been retroactively available since March 15 to cover 75 per cent of wages for employees for 12 weeks.
“It’s good for some business not good for most of those that are already closed,” Thind said, adding that he is still researching if the restaurant would benefit from the rent subsidy.
The biggest benefit right now is the $40,000 announced by the government for use in day-to-day expenses, Thind said, because it will help them liquidate cash for paying rent and employees.
“I’m keeping all my core staff,” Thind said. “They’re working for me for more than eight years.”
Local businesses are struggling in Cochrane, Thind said but believes the federal government is taking action to support them.
Thind said the rental benefits are just a start and he expects to see changes according to how successful subsidies prove to be in supporting small businesses.
It was extremely challenging weathering the recession in 2016-2017, he said, but businesses were able to survive.
COVID-19 and its associated economic turmoil is a different situation Thind said because there is hope the economy will begin to reopen in the coming months.
Thind said he has one message for small business owners right now— “If you can, hang in there.”
—With files from the Canadian Press
