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Good afternoon.

Earlier today, Prime Minister Trudeau announced that the federal government had come to an agreement with the provinces and territories on the Canada Emergency Commercial Rent Assistance (CECRA) program<https://pm.gc.ca/en/news/news-releases/2020/04/24/prime-minister-announces-partnerships-provinces-and-territories>. This is another financial support that is being introduced to help small businesses, the full list of which can be found by clicking here<https://www.canada.ca/en/department-finance/economic-response-plan.html#businesses>. Please feel free to share this note in full or in part with your membership.

Since the COVID-19 pandemic first began forcing the closure of schools and businesses in March, my office has heard from hundreds of commercial tenants and landlords who were struggling to ensure that rents could be paid and mortgage obligations kept. I have spoken to many of you and your members to get a fuller picture of what was needed and have passed on your feedback to my caucus and Ministers Ng, Morneau and Fortier. Local surveys, articles and interviews were also passed along to provide as full a picture as possible of what has been happening on the ground here in Toronto-Danforth.

While the initial plan behind CECRA was announced last week, it has taken time to ensure that the territories and provinces, including the Province of Ontario, would be able to assist in the plan's development, funding, rollout, and administration. Provinces have jurisdiction over commercial leases and I'm glad to see that the two levels of government are working together to make this happen. I want to make sure I say a big "Thank you" to all of you who have provided me insight and feedback that has helped make this happen and helped assist businesses, and millions of your fellow Canadians, during an historic and difficult crisis.

Here is a brief summary of how the rent relief program will roll out (you can also click HERE for the Prime Minister's press release<https://pm.gc.ca/en/news/news-releases/2020/04/24/prime-minister-announces-partnerships-provinces-and-territories>):

  *   The program will provide forgivable loans to qualifying commercial property owners to cover 50 per cent of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, and June.
  *   The loans will be forgiven if the mortgaged property owner agrees to reduce the eligible small business tenants’ rent by at least 75 per cent for the three corresponding months under a rent forgiveness agreement, which will include a term not to evict the tenant while the agreement is in place. The small business tenant would cover the remainder, up to 25 per cent of the rent.
  *   Impacted small business tenants are businesses paying less than $50,000 per month in rent and who have temporarily ceased operations or have experienced at least a 70 per cent drop in pre-COVID-19 revenues. This support will also be available to non-profit and charitable organizations.

  *   It is expected that CECRA will be operational by mid-May, with commercial property owners lowering the rents of their small business tenant’s payable for the months of April and May, retroactively, and for June.
  *   Further details on CECRA will be shared in the near future once final terms and conditions are available. The federal government and provincial and territorial governments urge property owners to provide flexibility to tenants facing hardship in this uncertain time.
  *   Under a rent forgiveness agreement, which includes a moratorium on eviction, the mortgaged commercial property owner would reduce the small business tenant’s monthly rent by at least 75 per cent. The tenant would be responsible for covering 25 per cent, the property owner 25 per cent, while the federal government and provinces would share the remaining 50 per cent. The forgivable loans would be disbursed directly to the mortgage lender.

For this program to succeed, it is critical that landlords and tenants continue to communicate and look at the long-term. Some businesses may not be able to cover their 25% share, so deferral or allowing it to be spread over the balance of the lease may be needed to ensure businesses can stay in place and be ready to reopen when allowed. A number of you have already come to these kinds of arrangements, and hopefully today's announcement will alleviate the pressure on smaller landlords who have already negotiated reductions or deferrals. All of us need to continue to recognize that we are in this together.

Rolling out this program will take some time, but when it is launched I encourage you once again to reach out to me and let me know how this program works for you.  Since March I have heard from or tried to assist over 200 businesses and landlords in our riding - and we know there are more who may need help. If my team and I cannot resolve an issue we track it and raise it to try and improve or expand the supports that have been put forward. You can respond to this email or contact us by phone at 416.405.8914 (it goes to a voicemail system that is monitored 7 days a week).

Thank you for making our part of Toronto a unique and vibrant community. Please keep in touch, and let me know how we can help.

Julie
Julie Dabrusin
Member of Parliament
Toronto-Danforth
416.405.8914