Just Announced – New Commercial Rent Support Coming; Eligibility Expanded for Interest-Free Business Loans
Today, two announcements were made which directly respond to our advocacy with government and get additional supports for local businesses.
Within the past hour, the Prime Minister announced a new support to help small businesses pay commercial rents, and also announced expanded eligibility for the $40,000 interest-free loans program.
New ‘Canada Emergency Commercial Rent Assistance Program’
The federal government has announced plans to create, in partnership with the provinces, a new Canada Emergency Commercial Rent Assistance Program. Details have yet to be announced, but the program will provide loans, including forgivable loans, to property owners who lower or forgive small business commercial rents in the months of April, May and June.
We will continue to engage with government to get all the details and deliver those to you as soon as possible.
Expanded Eligibility for the Canada Emergency Business Account
The “Canada Emergency Business Account” provides interest-free lines of credit of up to $40,000 to qualifying small businesses, with up to $10,000 eligible for forgiveness.
Today’s announcement expands the eligibility of this program to businesses which had 2019 payroll of between $20,000 and $1.5 million. This is an increase from the initial eligibility threshold of $50,0000 to $1 million. The Burnaby Board of Trade was fighting for this program to be expanded and applauds the government’s quick action on this.
Key Program Details:
- Open to organizations with total payroll of $20,000 to $1.5 million in 2019 as indicated on their 2019 T4 Summary of Remuneration Paid
- You may apply only once and at your primary financial institution
- Loans/lines of credit will be interest free until December 31, 2022
- No repayments are required until December 31, 2022, but can be made at any time in any amount prior
- If businesses can repay the balance of the loan on or before December 31, 2022, the federal government will forgive 25% of it (up to $10,000).
- If the loan is needed after December 31, 2022, it converts to a traditional loan with interest and repayment terms as per your financial institution