With May rent payments looming, only 10 per cent of small business owners say they qualify for Canada Emergency Commercial Rent Assistance (CECRA) and believe their landlord will participate in the program, according to a survey by the Canadian Federation of Independent Business (CFIB). 

The survey results, published Thursday, reveal that small businesses remain anxious about the quickly approaching May rent, despite fiscal intervention on both federal and provincial level.

The CECRA, introduced last week by Prime Minister Justin Trudeau, aims to lower rent by 75 per cent for businesses facing financial hardship due to COVID-19 for April, May and June.

However, CFIB found that many small businesses fall through the cracks of CECRA’s criteria: 36 per cent of respondents said they are ineligible for the program as they do not meet the revenue loss criteria, nine per cent say they do qualify but their landlord won’t participate, and 40 per cent say they qualify, but are unsure if their landlord will participate.

CECRA is an 'equitable distribution of pain': ALLIED Properties CEO

ALLIED Properties REIT CEO Michael Emory says his company will participate in the commercial rent relief program for many of his retail tenants, who he suspects need it the most.

“Tenants are powerless if their landlords don't apply, and landlords are worried there aren't enough details to know whether they qualify,” Laura Jones, CFIB’s executive vice-president, said in a release.

The CFIB survey results show 80 per cent of small businesses want additional grants from provincials governments to help those that are ineligible for current CECRA support. CFIB has also urged provincial governments to put in place eviction protection for commercial tenants during the COVID-19 crisis. 

"Many stressed small businesses are desperate for the provinces to do more,” Jones said. “What do you say to a hairdresser who is shut down by provincial order and whose landlord is not participating in CECRA? More provinces need to step up now to cover the gaps left by federal programs before it's too late.”

Results are based on 9,266 online responses from CFIB members between April 24 and 29, 2020. For comparison purposes, a probability sample with the same number of respondents would have a margin of error for national results of +/-1.0%, 19 times out of 20.

Sign up for BNN Bloomberg's new weekly newsletter, Home Economics, which aims to help Canadians navigate their personal finances in the age of social distancing and beyond. Have it delivered to your inbox every Friday by subscribing at https://www.bnnbloomberg.ca/subscribe