Changes urged for federal rent assistance program

HALIFAX — Louis-Philippe Gauthier says the bar is set too high for small businesses trying to qualify for the federal rent assistance program.

And, if the program continues past June, he'd like to see changes to the 70 per cent business revenue loss threshold, as well as the application process made simpler for landlords.

Gauthier, the Canadian Federation of Independent Business's director of provincial affairs for New Brunswick and P.E.I., said that with the Canada Emergency Commercial Rent Assistance program's three-month coverage set to come to an end next week, paying July's rent is a major concern for many Atlantic

Canadian businesses still in recovery mode.

“We're not out of the woods by any stretch,” said Gauthier.

The CFIB, which has both small businesses and landlords as members, is calling on the federal government to continue the CECRA program past June, but it also wants to see changes so it meets the needs of landlords and tenants.

“The revenue is not there for a majority of businesses, and depending on the industry, rent is one of those big-ticket items that right now the federal program is still missing the mark,” he said.

Announced on April 24, the rent program reduced the rent for April, May and June for eligible commercial tenants through a forgivable loan to landlords that covers 50 per cent of rent for those months. The tenant and the landlord then pay 25 per cent each of the rent owed. Small businesses are eligible if they pay less than $50,000 per month in gross rent, have annual revenues less than $20 million, and have had at least a 70 per cent decrease in revenues compared to preCOVID-19 business.