Madam Speaker, I am grateful to have the opportunity to talk about the government's plan regarding our support for businesses and the economic recovery in response to COVID-19.
Since the beginning of the pandemic, our government has been pursuing two goals, namely to protect Canadians' lives and to protect and safeguard businesses, jobs and the Canadian economy.
In the face of economic uncertainty, our government took decisive action to support businesses affected by the COVID-19 pandemic and to help protect the jobs that Canadians depend on.
Although some sectors of the economy are recovering, others are still dealing with lower revenues, increased costs and uncertainty caused by the COVID-19 pandemic.
Many business owners and businesses in Canada still need help with cash flow and operating costs. That is why our government introduced an act to amend the Income Tax Act regarding the Canada emergency rent subsidy and Canada emergency wage subsidy.
Bill C-9 would implement new targeted supports to help hard hit businesses. These measures are designed to help businesses get through the second wave of this virus so they can protect jobs, continue to serve their communities and be positioned for a strong recovery.
From very early on in the first wave of the pandemic, it was overwhelmingly clear that one of the most important ways to help businesses survive these trying times was through rental supports. Many Canadian businesses either had to shut down for months on end or lost a significant percentage of their revenues, yet still had to pay rent to their landlords.
This is why our government quickly developed the Canada emergency commercial rent assistance program, or CECRA, to help businesses with rent so they could stay afloat during the pandemic. One of the problems with this program was that it required landlords to apply for assistance, rather than the businesses themselves.
Businesses reached out to me when this program was announced to let me know that, while they needed the rental support to make it through, their landlords refused to apply for the program and they were being forced to pay the full amount even when in some cases their revenues were non-existent. As much as I try my absolute best to help my constituents and the businesses in my riding that reach out to me to access programs, I had no idea what to tell these people who were at the mercy of their landlords.
What I did was raise these concerns at caucus, as did several of my colleagues, and I am extremely happy our comments were listened to. Through the new and improved version of CECRA, the Canada emergency rent subsidy, we are proposing to provide direct and easy-to-access commercial rent and mortgage support until June of 2021 to organizations and businesses that have been affected by COVID-19, with a subsidy of up to 65%.
The new rent subsidy builds on the Canada emergency commercial rent assistance program, designed for small businesses. This program has already supported more than 133,000 small businesses and 1.2 million jobs in Canada.
We have been working closely with small businesses from the beginning of the pandemic. The new rent subsidy will be better targeted, easier to access and paid directly to small business tenants.
What would this look like in real terms for Canadian businesses? Let us look at a hair salon, for example, that followed public health and safety precautions and closed to the public back in March or April, like Trimz hair salon in my riding. It opened again over the summer as it was allowed to serve the public at a much lower capacity, and limited its number of customers in order to follow social distancing guidelines.
In Quebec, hair salons have been given permission to remain open until further notice and were open in the months of September and October. Let us say that in October their revenues were down 25%. On top of this, they incurred $2,500 in eligible rent costs for the first period of the rent subsidy—