Policy on rent
has not changed, MSMEs still covered under ECQ, MECQ, GCQ – DTI
June 7, 2020
MAKATI CITY –
Department of Trade and Industry (DTI) Secretary Ramon Lopez
corrected an article that came out in one newspaper and reiterated
that the 30-day grace period in the payments for residential and
commercial rents still has not changed, and still applies to micro,
small, and medium enterprises (MSMEs) not permitted to operate
during the Enhanced Community Quarantine (ECQ).
This was followed by the
issuance of DTI Memorandum Circular (MC) No. 20-31, s. 2020 on 4
June 2020, which clarified certain provisions in the earlier
released supplemental guidelines of MC 20-12, particularly that the
grace period on rents are covered under the ECQ, the Modified ECQ (MECQ),
and the General Community Quarantine (GCQ).
“As we slowly transition
to the new normal, we need to ensure the survival of businesses
during these difficult times and in the months beyond the lifting of
the quarantine,” Sec. Lopez said.
In the spirit of goodwill,
generosity, and fair play, lessors of commercial spaces are also
enjoined in the new MC to adopt any of the following: totally or
partially waive the commercial rents that are falling due during the
ECQ, MECQ, and GCQ; grant reprieve or a reduction in the amount of
rent due in the months following the ECQ, MECQ, and GCQ; open for
renegotiation the Lease Term Agreements with the lessees; and use
other recourse to mitigate the impact of the ECQ, MECQ, and GCQ to
The trade chief reiterated
his call to all lessors to continue to support and provide relief to
MSMEs in anticipation of the slow restarting of the economy. He
added that MSMEs currently employ 70% of the workforce and
emphasized the need to ensure the survival of these businesses
during the crisis, as well as protect the jobs it has created for
millions of Filipinos.
“These guidelines will
help our countrymen in the wake of the restrictions imposed during
the Community Quarantines (CQ) that have severely affected
businesses, especially MSMEs," Sec. Lopez said.
According to the
guidelines, the grant by the lessor of a minimum 30-day grace period
for residential rent shall commence from the last due date or from
the lifting of the ECQ, MECQ, and GCQ, whichever is longer.
For commercial rents
falling due upon MSMEs and sectors not permitted to operate during
the ECQ, MECQ, and GCQ, the minimum 30-day grace period shall
likewise be from the last due date or from the lifting of the ECQ,
MECQ, and GCQ, whichever is longer.
Tenants also have the
option to pay the cumulative amount of residential and commercial
rents stated above – that fall due within ECQ, MECQ, and GCQ – in
installments equally amortized in six (6) months following the end
of the 30-day minimum grace period.
All unpaid rents during
the CQs shall not incur interests, penalties, fees, and other
No eviction for failure to
pay the residential or commercial rent may be enforced during the
quarantine period. However, lessors are not obliged to refund
residential and commercial rents paid by the lessees before or
during the period of the community quarantine.
The complete amended
supplemental guidelines on the concession of residential and
commercial rents can be accessed thru: