Alberta has joined other provinces and the federal government in a program to help small businesses pay rent.
Many Alberta businesses have been required to close or limit their operations in order to protect public health during the COVID-19 pandemic, resulting in revenues being drastically reduced.
The new Canada Emergency Commercial Rent Assistance (CECRA) program will provide 50 per cent of monthly commercial rental costs and eligible landlords and tenants would each be responsible for 25 per cent of the remaining costs.
Travis Toews, President of Treasury Board and Minister of Finance, said: 鈥淢any of Alberta鈥檚 businesses have been taking measures that affect their bottom line in order to protect public health and we recognize this contribution.
鈥淚n addition to small businesses, rent relief is on its way to charities and non-profits 鈥� which provide critical services in our communities, especially during these difficult times.鈥�
The CECRA will provide a loan retroactive to April 1 to qualified commercial property owners supporting 50 per cent of rent for April, May, and June of this year.
The loan will be forgivable if the property owner and tenant come to a rent forgiveness agreement that lowers the eligible small business鈥� rent by 75 per cent for the three months and includes a moratorium on eviction.
The program is anticipated to be running by mid-May and will be administered by the Canada Mortgage and Housing Corporation (CMHC).
To qualify, businesses must pay less than $50,000 in rent, have been asked to close, or near-close their operations due to COVID-19, and be experiencing at least a 70 per cent decrease in revenues.
Further details on CECRA will be shared by CMHC in the coming weeks when final terms and conditions are available.
Prime Minister Justin Trudeau said: 鈥淢ore help is on the way for our small businesses across the country. They are the backbone of our families, our communities, and our economy.
鈥淭hat 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.鈥�
