New legislation fulfills key items on small-business owners' wish list, with up to 90% rent support for those hard hit
Weeks after it replaced the Canada Emergency Response Benefit (CERB) with three new programs, the federal government is turning its attention to small-business owners with a revamped commercial rent assistance program.
Under the newly introduced Bill C-9, the federal government said it is implementing new, targeted support for hard-hit businesses.
That includes a new Canada Emergency Rent Subsidy (CERS), which improves on the old Canada Emergency Commercial Rent Assistance (CECRA) program by providing qualified tenants and property owners hit by COVID-19 with “direct and easy-to-access rent and mortgage interest support … until June 2021.” That means tenants who were previously cut off from CECRA due to their landlords’ non-participation now have a chance to be covered under CERS.
According to a news release posted on the Government of Canada website, the new rent subsidy would support businesses, charities, and non-profits whose revenues have dropped based on a sliding scale that covers up to 65% of eligible expenses until December 19, 2020. The government is considering allowing applicants to submit claims retroactively for the period that began September 27 and ended October 24, 2020.
The draft legislation also provides for a new Lockdown Support, under which qualifying organizations who must shut their doors due to a lockdown or significantly limit their activities under a lawfully issued public health order can claim an additional 25% through CERS. Effectively, it allows hard-hit businesses to potentially receive up to 90% rent support.
“We’re very pleased with the draft legislation,” Dan Kelly, president of the Canadian Federation of Independent Business (CFIB), told Global News.
Bill C-9 also provided for the extension of the Canada Emergency Wage Subsidy (CEWS) until June 2021, maintaining its current rate of up to 65% of eligible wages until December 19, 2020.
While crediting Finance Minister Chrystia Freeland for tabling the legislation, Kelly expressed concern that the delay from when CERS was first outlined could cost small-business owners dearly.
“I’m 50/50 as to whether the program will actually be delivering any cash by December,” he said, calling on lawmakers to make necessary amendments and pass the bill before the week ends. “Every day that goes by without the program being in place, there will be more and more businesses making decisions to permanently close their doors.”
