With May rent due tomorrow, small business owners are concerned about whether landlords will take up the Canada Emergency Commercial Rent Assistance program (CECRA), according to new survey results from the Canadian Federation of Independent Business (CFIB). Even with some Saskatchewan businesses set to re-open next week in the province, most desperately need help to cover their fixed costs.听
鈥淚n theory, the CECRA program is good as it covers a substantial fraction of the rent and the costs are shared, but in practise it is quickly turning into a mess. Tenants are powerless if their landlords don鈥檛 apply and landlords are worried there aren鈥檛 enough details to know whether they qualify. Unless there is a miracle on Main Street between now and Friday, it looks like the program isn鈥檛 going to help nearly enough businesses,鈥� said Laura Jones, CFIB鈥檚 executive vice-president.听
Looking at business owners in Saskatchewan who said they need help with rent, the survey found that: 31 per cent don鈥檛 qualify because they don鈥檛 meet the 70 per cent revenue loss criteria; two per cent qualify, but know their landlord won鈥檛 participate; 21 per cent qualify and are unsure if their landlord will participate; and five per cent qualify and think their landlord will participate.听
The CFIB appreciated that the federal and provincial governments have come to the table with significant funding to support commercial rent, but continued to call for support to go directly to the tenants.
The CFIB asked provinces to help cover rent with monthly grants of up to $5,000. Only three provinces, Saskatchewan, Manitoba and Nova Scotia, have programs anywhere close to this, with one-time grants of $5,000.
Current survey results show 80 per cent of small businesses want provincial governments to provide additional grants for those falling through the cracks of federal programs. CFIB has also called on the provinces to put in place eviction protection for commercial tenants otherwise in good standing for the duration of the COVID-19 crisis.听
鈥淢any stressed small businesses are desperate for more help, even as some begin to re-open,鈥� said Marilyn Braun-Pollon, CFIB鈥檚 vice-president, Western Canada and Agri-business. 鈥淲hat do you say to a hairdresser who is shut down by provincial order and whose landlord is not participating in CECRA? While we are pleased the Government of Saskatchewan has stepped up with the Saskatchewan Small Business Emergency Payment, we recommend the province consider extending this grant.鈥澨�
CFIB also has tools available for business owners on its website at听, including a template for tenants wanting to reach out to landlords regarding CECRA and one for landlords to reach out to tenants.听
鈥淐ECRA isn鈥檛 working for lots of businesses so we continue to urge tenants and landlords to talk to each other and work out something reasonable and fair to help as many businesses survive this storm as possible. In the meantime, we will continue to advocate for simple programs that allow money to flow straight to the tenant,鈥� added Braun-Pollon. 听听
听
