The Quebec government announces new measures to support Quebec businesses affected by the repercussions of COVID-19, including the Aide d’urgence aux petites et moyennes entreprises program. This program has been set up to support SMEs experiencing financial difficulties as a result of COVID-19, and requiring liquidity of less than $50,000 for working capital purposes.
This initiative complements the Programme d’action concertée temporaire pour les entreprises (PACTE), launched by the Quebec government on March 19, which is aimed at companies in need of liquidity in excess of $50,000 for their working capital. It complements measures put in place by the federal government, namely the Canadian Business Emergency Account and the Canada Emergency Wage Subsidy.
Pierre Fitzgibbon, Minister of the Economy and Innovation and Minister responsible for the Lanaudière region, and Marie-Eve Proulx, Minister for Regional Economic Development and Minister responsible for the Chaudière-Appalaches, Bas-Saint-Laurent and Gaspésie-Îles-de-la-Madeleine regions, made the announcement today.
Emergency assistance for small and medium-sized businesses
The purpose of this program is to provide working capital support, for a limited period, to businesses whose financial situation is precarious as a result of COVID-19, so that they can maintain, consolidate or relaunch their activities. An initial envelope of $150 million is therefore available to MRCs and equivalent territories to help businesses.
Of this amount, the cities of Montreal and Quebec City will receive $40 million and $10 million respectively, while the other MRCs and equivalent territories will share $100 million.
Businesses in all sectors of activity, including cooperatives, non-profit organizations and social economy enterprises with commercial activities, will be able to obtain a loan or loan guarantee of up to $50,000, to help overcome the liquidity shortfall associated with COVID-19.
The main terms and conditions and how to apply for assistance are presented on the Québec.ca website. Eligible companies wishing to obtain further information or apply for this funding can contact their MRC.
Extension of the current normative framework for the Local Investment Funds
The Quebec government has also announced a two-year extension of the Local Investment Funds (FLI), until December 31, 2022. This extension will enable MRCs to better meet the current needs of Quebec businesses.
Measures to ease the repayment terms of FLI loans
New measures to ease the repayment terms of FLI loans have also been introduced to meet the needs of companies affected by the COVID-19 pandemic.
It will therefore be possible to offer them an additional three months’ respite from repayment of their loan (principal and interest). These new measures are in addition to those announced on March 19, bringing the respite period for companies to six months.
(Source: Government of Quebec)
