In order to maximize the participation of commercial property owners in the Canadian Emergency Commercial Rental Assistance (CECRA) program, the Quebec government intends to compensate landlords for 50% of their loss. Landlords, who had to commit to absorbing a 25% loss by enrolling in this program, will now receive an amount equivalent to 12.5% of the total cost of rent to reduce their loss by half.
Pierre Fitzgibbon, Minister of the Economy and Innovation and Minister responsible for the Lanaudière region, made the announcement today.
This represents an additional investment of approximately $140 million by the Quebec government. The costs of this program, shared between the federal and provincial governments, now amount to almost $280 million for Quebec, doubling its investment.
Commercial property owners in all regions of Quebec are eligible for this measure. The terms and conditions will be made public in the coming days.
The AUCLC was set up by the Canadian government to reduce rents for small businesses affected by COVID-19. Under this program, building owners grant a rent reduction of at least 75% for the months of April and May (retroactively), as well as June, to leasing small businesses. AUCLC covers 50% of the rent, tenants must pay up to 25% and landlords must waive at least 25%. Eligibility criteria and how to apply are outlined on the Canada Mortgage and Housing Corporation website.
“It’s important for the government to keep listening to entrepreneurs, business leaders and employees in order to put in place economic measures that truly meet their needs. By increasing the AUCLC to halve the loss of commercial property owners, we will maximize their participation in the program. In this way, we aim to reduce the financial pressure on smaller businesses, such as restaurants and retail outlets. Coupled with the measure preventing the termination of a commercial lease or the eviction of a tenant in the context of the pandemic, this new initiative by the Quebec government allows restaurateurs and retailers to focus on getting back to business.”
Pierre Fitzgibbon, Minister of the Economy and Innovation and Minister responsible for the Lanaudière region
“Enhancing the AUCLC program will support a large number of tenant companies and property owners, who have been hard hit by the effects of the pandemic. Thanks to this additional leeway, they will be in a better position to restart their activities on a solid footing.”
Eric Girard, Minister of Finance and Minister responsible for the Laval region
