- First Capital REIT (TSX:FCR.UN) is introducing a Small Business Support Program to aid business owners affected by COVID-19 shutdowns
- The program, valued at C$30 million, will provide some financial relief for businesses already in First Capital’s real-estate portfolio
- The program will amend leasing arrangements to defer rent, which would allow businesses to stall operations with greatly reduced overheads
- First Capital Realty (FCR.UN) is down 9.54 per cent, with shares trading at $11.57 and a market cap of $2.58 billion
First Capital REIT (TSX:FCR.UN) is introducing a Small Business Support Program, to aid business owners through the recent economic downturn.
The program, worth C$30 million, will provide some financial relief for businesses in First Capital’s real-estate portfolio.
First Capital’s President and CEO, Adam Paul, believes this program will help businesses survive the challenging months ahead.
“Small businesses play such an important role in the thriving neighbourhoods in which we invest. Many of these businesses are also among the most impacted by the COVID-19 pandemic,” he said.
He went on to say that one of the company’s greatest strengths was working close with the community.
“We can give small businesses and the communities in which they operate some short-term relief to help them thrive over the long term,” he said.
The program will take the form of lease amendments to defer rent, which would allow business to stall operations with greatly reduced overheads.
This could ensure more businesses remain solvent in the coming months and are therefore able to pay staff and reopen when retail bans lift.
First Capital specialises in purchasing real estate in Canada’s urban areas. It is communities in these areas that are most at risk from COVID-19 spreading rapidly through dense populations.
As a result, business in urban centres have been heavily affected by provincial and federal shutdowns, which have forced non-essential services to temporarily close.
The Canadian government recently announced similar measures to aid small businesses affected by the outbreak. These include a $12 million work-sharing program, to help business continue to pay staff, despite suspending operations.
First Capital Realty (FCR.UN) is down 9.54 per cent, with shares trading for $11.57 at 11:23am EST