With Quebec facing the second wave of COVID-19, and many concerned about its potential economic impact, CFIB asked SME owners to evaluate the assistance programs offered by the Quebec government, in order to better understand how satisfied they are with them.
| Québec programs for SMEs | Scores awarded by the largest proportion*. |
| Commercial loans under $50,000: emergency assistance for small and medium-sized enterprises (PAUPME) | A |
| Work income supplement (PIRTE) | B |
| Direct financial assistance for employee training and skills development (PACME) – program expired | B |
| Commercial loan of $50,000 or more (PACTE) | B |
*Question: “Including the application process, how would you rate your overall experience with this program?
“The results speak for themselves: the Quebec programs have been very useful for the companies that have been able to benefit from them. The Quebec government has been proactive in implementing them, and we thank it for that. Let’s be encouraged by these results and continue to work to improve support for SMEs, especially those that are still struggling,” says François Vincent, CFIB’s Vice President, Quebec, in a press release.
CFIB notes that there seems to be a certain lack of awareness of the programs still available. PAUPME is the one that reaches the most SMEs: 30% of companies surveyed claim to have used it, unlike the programs more specific to the tourism industry, which seem to be largely unknown.
“Our data reveals that a third of SMEs (35%) would like policymakers to take action to better publicize the programs available. We are convinced that improving efforts to inform SMEs more about the aid to which they may be entitled could, in many cases, make a big difference,” adds Vincent.
Administrative complexity and the inability to take on more debt: an obstacle for SMEs
Some business owners indicated that they had needed at least one of the assistance programs, but were unable to apply due to administrative complexity and their inability to take on more debt.
“Since last March, SME managers have been caught up in the storm. They have put all their time and savings into saving their business project. So, for some of them, and because time is such a scarce commodity, administrative complexity is enough of a deterrent not to apply for the programs in question. For others, increasing their level of debt, which is already too high, is simply not an option. Let’s not forget that the average debt contracted by Quebec SMEs to cope with COVID-19 is $135,000”, reminds Mr. Vincent. Vincent.
How can the government improve its support for SMEs?
In order for the government to improve its support and help businesses in difficulty, SME owners are asking it to continue working on cutting red tape (59%), reducing payroll taxes (39%) and turning part of program loans into grants, as is the case at federal level with the Canadian Business Emergency Account (37%).
“SMEs want more time to focus on their business projects, especially in times of crisis, and that’s why they’re asking the government to continue the work already well underway to cut red tape. They are also calling for a reduction in payroll taxes, which are higher here than in other Canadian provinces. A second wave will inevitably bring its share of challenges for SMEs, but we can support them even more by informing them of the assistance available and adjusting the programs in place to include a portion convertible into subsidies, as the federal government is doing. It’s actions like these that will help SMEs get through this unprecedented crisis,” concludes Vincent.
For more details, see the key results for Quebec from the COVID-19 survey and SMEs: state of play.
If you have any questions about existing corporate programs, please contact our expert Gustave Legault-Brousseau, CPA, CMA Senior Financial Analyst at Amyot Gélinas at 819 326-3400, ext. 3472. Toll-free: 1 877 326-3400.
