COVID-19 Commercial Rent Relief
COVID-19 Commercial Rent Relief Prime Minister Justin Trudeau has proposed rent relief to cover 75% of April 2020, May 2020 and June 2020 rent for affected small businesses.
Through the new Canada Emergency Commercial Rent Assistance Program, property owners will receive forgivable loans to cover 50% of April 2020, May 2020 and June 2020 rent receivable from eligible small business tenants experiencing financial hardship for these very months.
The loans will be forgiven to commercial property owners if the property owner reduces the eligible small business tenants’ rent by at least 75 percent for this three month period (April 2020, May 2020 and June 2020) and agrees not to evict the tenant while this agreement is in place.
The small business tenant will pay the remainder of the rent for this period (25% of the rent).
Rental payments that are less than $50,000 per month for businesses that have either ceased operations or have experienced at least a 70% drop in pre-COVID-19 revenues are eligible for this program.
It is anticipated that the new program will be operational by the middle of May 2020.
It is advisable to seek professional advice to understand the tax laws that impact your particular situation, and to guide you through the complexities of Canadian Income taxes. AWFS Consulting Inc. offers professional tax, business advisory, and accounting services to clients. The company’s mission is to offer financial leadership and support to clients in this ever-changing economic environment by empowering clients with financial knowledge.