Federal government eyes rent relief for smaller firms
TORONTO Rent relief is the next target of government programs aimed at keeping small and medium-sized businesses afloat during the coronavirus pandemic, Prime Minister Justin Trudeau said Thursday.
The feds are understood to be contemplating a program that would include loans for commercial landlords who would, in turn, reduce or waive rents from small businesses for a period extending from April through June. However, details have not been hammered out and must be done in consultation with the provinces, which have responsibility for landlord-tenant relationships.
Economists say commercial rent relief would boost the effectiveness of other aid programs, such as wage subsidies and emergency loans, the latter of which was expanded by the feds on Thursday to include both smaller and larger firms.
As business groups await details of Trudeau’s rent relief plan, they are pushing to have the programs include rent reduction and elimination, rather than just deferral. Many firms are concerned that rent deferrals would simply push the prospect of bankruptcy down the road, leaving businesses to confront a pile of bills when they are finally allowed to reopen and may have limited revenues.
“While rent deferral policies may be useful in the short term — as the goal is to keep businesses in place so they can reopen after months of no revenue — a large rent deferral bill will force a business to close their doors for good,” said Rocco Rossi, chief executive of the Ontario Chamber of Commerce, on Thursday.
The chamber of commerce endorsed a “Save Main Street” initiative proposed by Ontario’s NDP party, which includes a 75-per-cent commercial rent subsidy of up to $10,000 a month over three months.