Governor Newsom Passes Order to Protect Small Companies from Eviction

Rich Pedroncelli / AP Images


The coronavirus has affected nearly everyone in the world. From school children to large corporations, countless people are being told to stay home for the next three weeks. Due to the required social isolation, small business have lost a majority of their customers.

The government has noticed small businesses suffering and decided to do something in order to help them remain afloat.

Governor Gavin Newsom released the Executive Order N-28-20, to be effective March 16, 2020 to aid both residential and commercial tenants.

The order states, “(i) The basis for the eviction is nonpayment of rent, or a foreclosure, arising out of a substantial decrease in household or business income… (ii) The decrease in household to business income or the out-of-pocket medical expenses described in subparagraph (i) was caused by the COVID-19 pandemic, or by any local, state, or federal government response to COVID-19, and is documented.”

Many people have expressed their support for this order including CA State Senator Scott Wiener and Mayor London Breed as you can see below.

 

The executive order is set to remain in place until May 31, 2020. Although renters cannot be evicted due to their inability to pay rent for the time being, renters are still required to pay what they owe their landlords. The order states, “Nothing in this Order shall relieve a tenant of the obligation to pay rent, nor restrict a landlord’s ability to recover rent due.”

California is not the only state trying to help small businesses. The following locations have also halted evictions due to coronavirus: Seattle, WA, Austin TX, San Antonio, TX, Denver, CO, Detroit, MI, Philadelphia, Los Angeles, CA, PA, Newark, NJ, Cleveland, OH, Miami, FL and New York State.

 

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