COVID-19 – Additional aid to support businesses

The Minister of the Economy and Innovation, Mr. Pierre Fitzgibbon, has announced additional measures to the Aide aux entreprises en régions en alerte maximale (AERAM) to further alleviate the difficulties encountered by businesses as a result of the recent tightening of health regulations.

The following adjustments are now in effect for companies subject to a closure order:

  • extension of the moratorium until September1, 2021 for repayment of principal and interest on financial assistance granted;
  • an additional amount of up to $10,000 to offset the cost of closing a restaurant or gym. This additional support applies to AERAM-qualifying businesses, and is intended to help establishments that had recently resumed operations, but had to cease them following a re-closing order in the context of the COVID-19 pandemic;
  • additional support in the form of a non-repayable contribution equivalent to a maximum of $45,000 for establishments that have been closed for more than 180 days, or $15,000 per month, for fixed costs incurred in the three months following the last month of eligibility under the closure. This additional contribution is in addition to the non-repayable contributions of previous months, up to a maximum of 100% of the financing granted for businesses that have demonstrated liquidity needs;
  • addition of companies offering catering services to the restaurant category, with feedback possible until January1, 2021.

Highlights :

  • The PAUPME program provides working capital loans of less than $50,000 to SMEs with liquidity needs, enabling them to maintain, consolidate or relaunch their activities.
  • Through loans or loan guarantees of a minimum of $50,000, PACTE supports companies’ working capital, enabling them to continue their activities.
  • AERAM is aimed at companies benefiting from the PAUPME or PACTE programs. It enables establishments subject to closure orders to obtain loan forgiveness of up to $15,000 per month (maximum 80% of the loan amount granted) to pay certain eligible fixed costs.
  • Eligible fixed costs underAERAM are :
    • municipal and school taxes;
    • rent;
    • interest paid on mortgage loans;
    • utility costs (e.g. electricity and gas);
    • insurance;
    • telecommunication costs;
    • permits and association fees.
  • This measure covers the portion of costs not claimed under another government program and disbursed for the closure period in question.
  • The maximum forgiveness for re-opening months ($15,000) and closing costs ($10,000) is 100% of the loan granted, depending on the company’s liquidity needs.
  • The additional $15,000 pardon bonus for establishments closed for more than 180 days is in addition to the two $15,000 bonuses for establishments closed for 90 days or less, and for establishments closed for more than 90 days.
  • PACTE and PAUPME, with their AERAM component, are complementary to the various emergency programs in place, notably those of the federal government, such as the Canada Emergency Rent Grant (CERG) and the Canada Emergency Wage Subsidy (EWS).

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