Changes to small business COVID-19 support program welcome, but rent relief still needs fixing

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‘We have a rent subsidy that’s desperately needed … but it is inaccessible to them because their landlord is choosing not to participate’

OTTAWA – Prime Minister Justin Trudeau took another step to broaden the government’s support for small businesses, but advocates say there are still cracks in the program and companies are falling through them.

“It was just deeply unfair, because many of these businesses were just absolutely gutted by, or have been gutted by the effects of COVID-19,” said Kelly. Conservatives have been calling for the change for weeks, the party’s small business critic, MP James Cumming said the news is welcome, but the government should have made these moves weeks ago.Many of these businesses were just absolutely gutted by, or have been gutted by the effects of COVID-19

Trudeau has also announced a wage subsidy program and a commercial rent relief program. Last week, he announced changes to the wage subsidy as well as an extension of the program into the end of August. Kelly said the wage subsidy and credit programs needed and have received tweaks, but the government would be best to start over on its commercial rent relief program. If landlords apply for the program, the provincial and federal governments provide 50 per cent of a small business’ rent, with the tenant covering 25 per cent and the landlord taking a 25 per cent haircut to cover the remainder.

Provincial governments have the constitutional authority over rent agreements and Kelly said they should be stepping up to the table with bans or restrictions on evictions.

 

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