While many small businesses are rejoicing as the Ontario-Canada Emergency Commercial Rent Assistance (OCECRA) offers rent relief, others are still worried since their landlords aren't applying.
Earlier this month, the government announced the new programto provide "forgivable loans to eligible commercial property owners" who are dealing with loss of rental income due to the ongoing pandemic.
The program helps share costs, such as rent, between small business tenants and landlords. According to the government, tenants and landlords would each pay 25 per cent of the before profit costs and the government picks up the remaining 50 per cent.
"When they first announced they were going to do something for business tenants I was like, 'Good! This is what has to happen!'" a wedding event manager told blogTO.
But the feeling of relief was short-lived, as OCECRA is voluntary.
"If they don't apply then we're going to be closing," the event manager said. "We have really no idea how they're going to act. If there was more incentive for them to take the program I would feel better."
Landlords don't have to sign up for it and many have opted not to.
"Commercial landlords don't see OCECRA to be in line with their interests at all," said Matthew Nguyen, co-owner of Tam Vietnamese Restaurant.
In fact, landlords are blaming the government and the 25 per cent of rent they need to forgo as the reason why they're not applying.