Commercial Rent Subsidy Program Not As It Seems
Commercial Rent Subsidy Program Not As It Seems

Yes, there are hidden landmines within the recently announced Federal Government’s Commercial Rent Subsidy Program”  The mis-information and confusion it is creating within that program is actually quite economically dangerous.

Here is a quick synopsis and reference:

“The murky world of Government Rent Deferral Announcements, just got murkier with their “Commercial Rental Program”

The deeper we dive into their GRAND headline-grabbing announcements the more we see that the “title and Summary paragraphs” are really designed for excellent PR. However,the actual “Subject-To” details make it incredibly difficult to make a lot of these programs work in the real world.As we are discovering in the “Commercial Rent Deferral Program” the real pain is hidden in the unspotlighted details. For instance The fine print of the program includes two caveats that small businesses are worried they can’t clear. The first requirement is that tenants have to have seen a revenue drop of at least 70%, much higher than the government’s wage subsidy program, which required a 30% drop, The 2nd is have ceased operations.

Here’s how this is going to increase the level of divisiveness and pain in the small business world:

Government Announcement: “Hey small business, you don’t have to pay your rent because we’re paying it for you.” Followed by smiles, media headlines and pattings upon backs.

Relieved Small business owner: “Yay! Thank you, that will help buffer our pain.” Followed by stop payments on rents and ‘no-rent’ expectations. Forgetting completely about the Triple Net portion of the ‘rent’ is not covered.

Disappointed Building owners: “Hey wait! You don’t qualify according to government rules.” Followed by distress and anguish and calls to banks, accountants and tenants.

Stressed-out and now disappointed Small business owner: “What a nasty landlord we have!” followed by a quickly deteriorating relationship between landlord and small business and potential press releases with anguished photos.

Confused and now ultra-Stressed-out Building owner “What the heck just happened? I am forced to follow these rules.” Followed by missed payments on mortgages, property taxes, utilities (in some cases). Followed by nasty letters from those providers, followed by huge increased stress, some foreclosures, lots of anger, no building maintenance.

All caused because announcements are being made for headline effect and details very scarce.

Is increased divisiveness the ultimate end game? If one was to look at this dispassionately one could surmise that.

Caveats in commercial rent subsidy program leave small business owners fearful of eviction http://nationalpost.com/wcm/ca2ac276-fe04-4b1e-86ae-348d3f1ff624
Commercial Rent Subsidy Program Not As It Seems was last modified: May 1st, 2020 by Don R. Campbell
 

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