The Ontario government recently passed the Protecting Small Business Act, 2020,
amending the Commercial Tenancies Act to temporarily
halt or reverse evictions of commercial tenants and to protect
those tenants from having their assets seized or being locked out
during COVID-19.
The restrictions apply to: (1) landlords eligible to receive
assistance under the Canada Emergency Commercial Rent Assistance
for small business program (the "CECRA"); and (2)
landlords who would be eligible to receive assistance under the
CECRA if the landlord entered into a rent reduction agreement with
the tenant containing a moratorium on eviction.
The legislation, though, raises several significant questions,
primarily around the definition of "eligible". Under the
CECRA a landlord is likely only eligible if a tenant is also
eligible, but what happens if a tenant fails to co-operate? If
challenged in court, how will a judge interpret eligibility?
