The Minister of the Economy and Innovation, Mr. Pierre Fitzgibbon, announced on Wednesday, February 3, 2021, that business owners who were subject to a closure order in the context of the Covid-19 pandemic will be able to obtain reimbursement of their fixed costs during the restart period.
This additional assistance represents the equivalent of one or two months’ additional non-refundable contributions, on top of those for previous months. It may be claimed once the business has reopened.
Businesses eligible for the Aide aux entreprises en régions en alerte maximale (AERAM) component of the Programme d’action concertée temporaire pour les entreprises (PACTE) or the Aide d’urgence aux petites et moyennes entreprises (PAUPME) program will be able to obtain this additional support to facilitate a return to normal operations.
These adjustments follow the announcement by Quebec Premier François Legault of the gradual resumption of business activities as of February 8.
For businesses closed for 90 days or less, the maximum additional amount that can be received is $15,000 per establishment. This additional support must be claimed for fixed costs incurred in the month following the reopening of the business in question.
For businesses closed for more than 90 days, the maximum additional amount that can be received is $30,000 per establishment, or $15,000 per month. This additional support must be claimed for fixed costs incurred in the two months following the reopening of the business in question.
Highlights :
Businesses in red zones that have been forced to close their doors for at least seven days, rather than the usual ten days, during the months of February and March will now be eligible for AERAM (Aide aux entreprises en régions en alerte maximale) assistance.
Companies still subject to a closure order after February 8, 2021, and experiencing liquidity problems as a result of the pandemic, can still apply to Investissement Québec or their MRC to benefit from existing assistance programs.
PAUPME (Programme Aide d’urgence aux petites et moyennes entreprises) provides loans of less than $50,000 to support the working capital of SMEs, enabling them to maintain, consolidate or relaunch their activities.
Under PAUPME and its AERAM component, a company could benefit from additional financial assistance of up to $50,000 to cover its liquidity needs, for total assistance of up to $150,000.
PACTE (Programme d’action concertée temporaire pour les entreprises) provides loans or loan guarantees of a minimum of $50,000 to help companies build working capital so they can continue to operate.
The AERAM component is aimed at companies benefiting from the PAUPME or PACTE programs.
It allows establishments subject to closure orders to obtain loan forgiveness of up to $15,000 per month (maximum of 80% of the loan amount granted) in order to pay certain eligible fixed costs, namely :
- 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.
(For questions about existing business programs and emergency financial assistance, please contact our expert Gustave Legault-Brousseau, CPA, CMA, Senior Financial Analyst at Amyot Gélinas at 819 326-3400, ext. 3472 or glegault-brousseau@amyotgelinas.com )
