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Small business group wants commercial rent relief, not loans, to stem economic fallout from COVID-19 | CBC News

Byindianadmin

Apr 14, 2020
Small business group wants commercial rent relief, not loans, to stem economic fallout from COVID-19 | CBC News

As criticism of the government’s emergency loan program for small businesses known as Canada Emergency Business Account (CEBA) mounts in some quarters, there are calls for other ways to combat the economic impact of COVID-19.

Jon Shell, co-founder of the advocacy group Save Small Business (SSB) says the federal government should be implementing an emergency commercial rent relief program, rather than loans, to help companies hit by losses associated with the COVID-19 pandemic. (Noa Shell)

As criticism of the government’s emergency loan program for small businesses known as Canada emergency business account (CEBA) mounts in some quarters, there are calls for other ways to combat the economic impact of COVID-19.

A push for grants and direct relief for expenses in this country is coming from small business associations and experts looking at aid packages that have been doled out in places like the U.K., Denmark and Australia.

Now, a new Canadian advocacy group called Save Small Business (SSB) says instead of emergency loans, the federal government needs to create an emergency commercial rent relief program.

“It’s unfair to close down local businesses and ask them to take out a loan in order to pay all their expenses,” said Jon Shell, the group’s co-founder.

“We have to share the burden of rent in a way so that the tenant isn’t the only one responsible.”

The Canadian Federation of Independent Business (CFIB) has called on provinces to provide rent subsidies for businesses devastated by the pandemic, also recommended hardship grants of $5,000 a month, like the program recently announced in Saskatchewan.

The SSB proposal for a national commercial rent abatement program delivered to Canada’s finance minister this past Friday goes farther, calling on Ottawa to kick in.

“We’ve had some estimates that said 10 per cent of local businesses are already permanently closed,” he said. “I think we’ll see widespread business closures by mid-May.”

Loans and subsidies 

Founded in late March, SSB says it’s a coalition of 30,000 small businesses and individuals from across Canada, pushing for a wage subsidy and help with rent.

An emergency session of Parliament on Saturday passed legislation enacting the Canadian emergency wage subsidy program (CEWS).

Opposition Leader Andrew Scheer speaks n the House of Commons Saturday during an emergency sitting of Parliament to pass the emergency wage subsidy program. (Justin Tang/The Canadian Press)

On Friday, banks across the country began accepting applications for CEBA.

The $25-billion program offers government-backed loans of up to $40,000, interest-free until the end of 2022.

First announced in late March, it’s intended to help small businesses pay ongoing expenses like rent.

Many small businesses, however, have complained they don’t want more debt, while others are frustrated they don’t qualify to get a CEBA loan.

Finance Minister Bill Morneau did not immediately respond to requests for comment. 

What is rent abatement and how would it work?

Shell’s group wants Ottawa to pay part of the rent for small businesses in five sectors: retail, full service restaurants, arts entertainment and recreation, health-care and social assistance.

Their proposal covers about 700,000 Canadian businesses and has fo

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