Relief available for some businesses & landlords in D-C, but not all

Written By ALYSSA PARKHILL

Back on April 24 Dufferin-Caledon MPP Sylvia Jones, alongside Premier Doug Ford, announced a relief fund to assist small businesses and landlords within the region. 

The provincial government is investing $241 million to help businesses who are struggling financially as a result of the COVID-19 pandemic. In total, the joint federal and provincial initiative is providing more than $900 million to businesses across Ontario.

“Small businesses in our community are experiencing real financial pressures during the COVID-19 crisis and are struggling to pay rent as a result,” said MPP Jones in a recent news release. “That's why we are partnering with the federal government to ease these financial pressures and support our small businesses through this challenging economic time.”

The OCECRA was developed to provide loans to businesses and property owners who are struggling pay rent due to the COVID-19 pandemic. 

The loans are designed to cover 75 percent of a tenant's rent from April to June.

There is a limit to the government's generosity. Only small businesses whose monthly rent comes in lower than $50,000 per month qualify for the subsidy. On top of that, business owners must show that their revenues have dropped by at least 70 percent to receive any money.

On top of the financial aid, Ontario are also reducing electricity rates for small businesses, residential and farm time-of-use customers, seeing 50 per cent reductions until June.

“To help stop the spread of COVID-19, businesses have closed their doors and employees have stayed home and that has been working, but it has also created significant financial hardship,” said Minister of Fine, Rod Philips. “By subsidizing rent payments, reducing taxes, extending deadlines and eliminating penalties and interest, we're helping to ensure businesses can start up quickly when the time is right.”  

But what about those who aren't eligible for government support? 

Donna and Paul Forster, owner of Forster's Book Garden have been doing what they can to continue their business for the community. 

“So far, we're coping well, promoting our website and email ordering,” Mrs. Forster expressed. “Orders are received daily via phone, email and website. Received boxes are disinfected before opening, sales are done over the phone by credit card and orders are run out to cars or delivered if necessary. 

She added, “We receive less feedback from people on their book choices and can't allow browsing, so making good suggestions for people takes longer. There's less opportunity to promote books through in-store displays' and it's taken a while to reach people to let them know that even though not open for browsing, we are still able to fill orders.”

They have several concerns about the eligibility requirements, not least surrounding their belief that the rent relief percentage is too high for many businesses to qualify. 

“The threshold for rent relief set at 70 per cent loss of income is too high. Not all small businesses qualify, yet all the revenue being taken in now is going to rent,” Mrs. Forster said. “Our own Town Council could help by putting time, energy and money into promoting local shopping.”

She added, “Small businesses will need it more than ever when this is all over. It will be the only way to keep many of us in business after the world goes back to ‘normal'.” 

To learn more about the OCECRA, please visit Ontario.ca