Mr. Ste-Marie, thank you for your questions.
Under the model we are envisioning, businesses could pay a portion of their rent in line with a percentage of revenue. A program like that would address some of the needs Mr. Oliver talked about. Those in more trouble who need more help would be eligible for more assistance. For example, a 50% decrease in revenue would give rise to a 50% rent subsidy. Various models would need to be considered.
Also important is the point at which the business's situation is considered to be normal again. We think the return to normal point should be when the business reaches 70% of its revenues. That would be consistent with the basic rate for the wage subsidy, in other words a 30% loss in revenues.
A loan guarantee program, where a portion is forgivable once the loan is repaid, is better than nothing. When it comes to rent, though, we are looking for subsidy-type assistance, something that would not be repayable. We want to make sure as many restaurants and food service operators as possible remain viable. Obviously, that means businesses that were viable before the COVID-19 crisis, because there has to be some fairness across the various restaurants and service providers. It's important to understand something: if federal support is limited to payment deferrals and loans, watch out.
When it comes to rent, reaching agreements with the provinces is essential. Many of these private contracts are under provincial jurisdiction. Saskatchewan and Quebec are two provinces that are already working on the issue, and we encourage everyone to do so.