As many Canadians are going to struggle to make next month’s rent, the Prime Minister is urging – and warning – commercial landlords to participate in a federal loan program to help alleviate some of that financial pressure.
Next week, the federal government is introducing a forgivable loan program which would give commercial landlords enough funds to cover half of a month’s rent, as long as they reduce their rental rates by a minimum of 75%. However, some landlords are leery of the program, and may choose to opt out. As a result, Justin Trudeau is urging rental companies to apply for the program instead of evicting struggling tenants.
He further warned landlords that if they evict their tenants now, later down the road they may find themselves in even worse financial ruin. Given that many Canadians can work from home, a post-pandemic world may not be so heavily reliant on commercial rental space anymore. Thus, it is important to offer support to those businesses which are still in one piece during the pandemic, otherwise an economic recovery for Canada may be even more dragged down.
Information for this briefing was found via Global News and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.