As expected, yesterday the Ontario government passed the Protecting Small Business Act, temporarily halting or reversing evictions of commercial tenants and protecting them from being locked out or having their assets seized during COVID-19.
The legislation applies to businesses that are eligible for federal/provincial rent assistance for evictions from May 1, 2020 until August 31, 2020.
Landlords and tenants are encouraged to participate in the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses.
The pause on evictions does not apply to those participating in CECRA for small businesses, as the program requires landlords to enter into a rent reduction agreement with their impacted small business tenants and commits them to a moratorium on evictions for three months.
Did you also know:
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In partnership with the federal government, Ontario is committing $241 million to CECRA for small businesses, which will provide more than $900 million in support for small businesses and their landlords.
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CECRA for small businesses provides forgivable loans to eligible commercial landlords for the months of April, May, and June 2020. Small business landlords would be asked to forgive at least 25 per cent of the tenant's total rent, tenants would be asked to pay up to 25 per cent of rent and the provincial and federal governments would share the cost of the remaining 50 per cent.
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Tenants and landlords can learn who is eligible and how to apply at Ontario.ca/rentassistance. The application deadline is August 31, 2020.
