Quebec economic support programs

Back to full guide

Quebec declared a provincial state of emergency under the Decree declaring a state of health emergency through Quebec on March 13th, 2020. This decree had been renewed on March 20 and 29, 2020.

General information available here.

In this section:

  • ECONOMIC SUPPORT FOR BUSINESSES
  • ECONOMIC SUPPORT FOR INDIVIDUALS
  • TAX MEASURES
  • SUPPORT MEASURES OFFERED BY OTHER QUEBEC ORGANIZATIONS

ECONOMIC SUPPORT FOR BUSINESSES

Concerted Temporary Action Program For Businesses

DESCRIPTION

The Government of Quebec announced on March 19, 2020 the implementation of support measures for Quebec businesses, including a $2.5 billion program to support those affected by the impacts of COVID-19.

New emergency funding measure which provides ad hoc and exceptional support for businesses affected by the repercussions of COVID-19.

Details of Financial Assistance:

  • A loan guarantee is the preferred form of financing. Financing can also take the form of a loan from Investissement Québec.
  • Investissement Québec aims to work in close cooperation with financial institutions and federal authorities in order to share risks.
  • The minimum funding amount is $50,000.
  • Refinancing is prohibited.
  • This measure is designed to shore up the business's working capital.

All outstanding loans granted by Investissement Québec will be eligible for a moratorium on payment of principal and interest to be negotiated on a case by case basis.

ACCESS AND ELIGIBILITY

Eligible Projects:

Businesses must show that their cash flow issues are temporary and that the liquidity shortage stems from:

  • A problem involving the supply of raw materials or products (goods or services);
  • An inability, or a substantially decreased ability, to deliver goods, products or services;

Applications will be reviewed on a case-by-case basis, according to the business's circumstances and Investissement Québec's management practices.

Eligible Industries.

All industries are eligible, except for the following:

  • Weapons manufacturing or distribution;
  • Games of chance and gambling, combat sports, bars, racing and other similar activities;
  • Production and sale of tobacco and drugs along with services related to their use, except for projects involving pharmaceutical-grade products approved by Health Canada and having a DIN, or their ingredients, as well as R&D projects licensed by Health Canada;
  • Any activity whose main purpose is protected by the Canadian Charter of Rights and Freedoms (religion, politics, human rights advocacy, etc.);
  • Any other activity that may offend public morals.

LINKS

See more information on the Concerted temporary action program for businesses here.

Measures To Relax The Terms And Conditions Of Loans Already Granted Through Local Investment Funds

DESCRIPTION

In order to support businesses affected by the impacts of COVID-19, flexibilities for outstanding loans and loan guarantees are being put in place.

A six-month moratorium has been put in place for the repayment (principal and interest) of loans already granted through the Local Investment Fund (LIF). Interest accrued during this period will be added to the loan balance. This measure is in addition to the moratorium already in place under most investment policies in effect in the Regional County Municipalities (RCM), which can be as long as twelve months.

The LFI is the main financial tool of the RCMs set up to support businesses in their territory.

Each LFI was established with a loan from the Québec government.

The LFI aims to stimulate local entrepreneurship by promoting access to capital for the start-up or growth of traditional or social economy businesses and for support for the next generation of entrepreneurs.

LINKS

See more information on measures to relax the terms and conditions of loans already granted through Local Investment Funds here.

Emergency Assistance to Small and Medium Enterprises (SME)

DESCRIPTION

The Emergency Assistance for Small and Medium Enterprises program is designed to support, for a limited period of time, eligible businesses in financial difficulty due to COVID-19 that require less than $50,000 in cash.

LINKS

Eligible Clients

- businesses in all sectors of activity;

- social economy enterprises, including cooperatives and non-profit organizations engaged in commercial activities.

To be eligible, the business must

- have been in operation in Québec for at least one year;

- be temporarily closed, likely to close or showing signs of closure;

- be in a context of maintaining, consolidating or relaunching its activities;

- have demonstrated a causal link between its financial or operational problems and the COVID-19 pandemic.

Applicants who are under the protection of the Companies' Creditors Arrangement Act (CRA, 1985, Chapter 36) or the Bankruptcy and Insolvency Act (CRA, 1985, Chapter B-3) are excluded.

Eligible Funding

Financing is based on the company's cash requirements and is determined on the basis of justified and reasonable expenses.

It shall make it possible to make up for the lack of liquidity caused by :

- an impossibility or a substantial reduction in the capacity to deliver products (goods or services) or merchandise;

- a problem in the supply of raw materials or products (goods or services).

Assistance will be provided in the form of a loan or loan guarantee of up to $50,000.

LINKS

See more information on the Emergency Assistance to Small and Medium Enterprises (SME) here.

Concerted Action Program for Maintaining Employment (PACME-COVID-19)

DESCRIPTION

The PACME aims to provide direct support to businesses that are experiencing a reduction in their activities due to the effects of the COVID-19 pandemic, including self-employed workers, particularly through collective promoters recognized by the Commission des partenaires du marché du travail (CPMT), i.e. organizations whose actions affect several businesses and individuals in employment.

This program of the Ministère du Travail, de l'Emploi et de la Solidarité sociale is offered in collaboration with the Commission des partenaires du marché du travail. It provides direct financial support to promote training and the implementation of good human resources management practices and optimize the operation of businesses and the labour market.

The company's usual activities must have been affected by the COVID-19 pandemic, whether through a suspension, decrease, increase or diversification of activity.

This program may be combined with and complementary to any other federal or provincial government measures announced during the period in question.

Reimbursement of eligible expenses for business training projects :

- 100% of expenses of $100,000 or less;

- 50% of expenditures between $100,000 and $500,000.

Eligible Expenses :

Reimbursement of up to

- 25% of the payroll of workers in training (maximum eligible wage of $25 per hour), if the company receives the 75% emergency wage subsidy from Canada;

- 90% of the payroll of workers in training, if the company receives the 10% temporary Canadian wage subsidy;

- 100% of the wages of the workers in training, if the company does not receive a federal wage subsidy.

Reimbursement of up to 100% of training expenses, related costs and costs related to human resources management activities, according to the applicable scales (e.g. professional fees).

Projects are accepted until September 30, 2020, or until the $100 million budget envelope is exhausted.

Training or human resources management projects submitted may be of variable duration (from a few days to a few weeks or months) depending on the needs identified.

LINKS

Business Component

The programme provides direct assistance to businesses for their human resource management and worker skills development activities, whether on the job, online or remotely, so that they can use the current pause to upgrade the skills of their workforce and thus be ready for the economic recovery. In addition, it will help reduce the negative impacts that the health crisis or economic downturn could have on businesses.

The program can also support businesses that will, in the short or medium term, have to make changes to their usual activities in order to continue their operations, as well as businesses that, once the current crisis has subsided, will want to resume their activities and increase their business revenues. In all cases of on-the-job training, the terms and conditions will have to comply in all respects with public health guidelines.

Eligible clients for the Business component

- Employers

- Self-employed workers (incorporated or unincorporated) with employees

- Co-operatives

- Social economy enterprises

- Non-profit and community organizations active in communities

- Employee and employer associations

- Professional associations

- Employer groups

- Workers' organisations.

Collective Developers Component

The Labour Market Partners Commission is committed, among other things, to a collective approach to meeting the training needs of companies and the workforce. This emergency programme is thus aimed at organisations whose actions affect several businesses and people in employment in order to generate a multiplier effect. Its flexibility will enable promoters to respond quickly to the needs of their clienteles.

Eligible Clienteles for the Group Promoters Component

- Sectoral labour force committees

- Joint committees set up following a decree

- Training mutuals recognized under the Regulation respecting training mutuals

- Community organizations that sit on the CPMT

- Employers' associations recognized by the CPMT

- Legally constituted workers' associations

- Franchisors, who operate a business under the name of

- Clients who have an approved training service and who organise training courses for small and medium-sized enterprises (SMEs) in their industrial field.

LINKS

See more information on the PACME here.

Tourism Development Strategy Support Program

DESCRIPTION

The Ministère du Tourisme is endeavouring to put measures in place with the goal of assisting the tourism industry.

Some will have immediate effects to enable the industry to get through the crisis. Others will be implemented upon resumption of operations with the aim of favouring a faster recovery.

Businesses that have received a confirmation of financial assistance under the Tourism Development Strategy Support Program will benefit from a postponement of the start or end date of the work. The Ministère du Tourisme will also allow deadline extensions for businesses that must complete the financial setup of projects within a prescribed period. Businesses that wish to take advantage of this relief measure must send an email to the tourism development advisor (French only) in their region. Because the duration of the present crisis is uncertain for now, no deadline is provided regarding these postponements.

LINKS

See information on Tourism Development Strategy Support Program here.

For further information on Tourism Development Strategy Support, see here.

Assistance Program for Maintaining Essential Regional Air Services in Times of Health Emergencies

DESCRIPTION

The purpose of the Program is to support carriers so that they can provide essential air services to remote and isolated regions of Quebec during the period of the COVID-19 health emergency.

The program came into effect on March 31, 2020. It will end on the earlier of either June 30, 2020 or 30 days after the end of the VIDOC-19 emergency.

Objectives

- Maintain a minimum air service to isolated and remote regions of Quebec for the duration of the health emergency in order to ensure the continuity of essential services, including transportation:

1. people returning to their homes or patients requiring medical care;

2. medical personnel;

3. workers assigned to essential basic services (e.g., telephone and electricity);

4. goods, including perishable foodstuffs and medical equipment.

- Provide financial support to ensure the continued operations of air carriers that have maintained essential scheduled commercial air services that have resulted in financial losses in the wake of the COVID-19 crisis.

The program provides financial assistance covering the entire operating deficit incurred since March 13, 2020, the date of the decree declaring a state of health emergency throughout Québec, for eligible routes. Applicants are invited to consult the program's terms and conditions for more details and to learn about the specific conditions of the program.

The financial assistance provided may not exceed 100% of eligible expenses. Similarly, the cumulative rate of financial assistance paid by all public organizations, including financial assistance from departments and agencies of the governments of Canada and Quebec as well as from municipal entities within the meaning of the Access to Information Act, must not exceed 100% of eligible expenses.

ACCESSIBILITY AND ELIGIBILITY

Eligible carriers

- Quebec-owned carriers offering scheduled commercial air services to isolated regions of Quebec.

- Carriers licensed by the Canadian Transportation Agency to operate scheduled flights.

- Air carriers operating international commercial flights are not eligible for this program.

Eligible air services

Eligible air services are those whose final destination is one of the following isolated regions:

Nunavik;

Eeyou Istchee James Bay;

the Lower North Shore;

Anticosti Island;

Îles-de-la-Madeleine;

Fermont;

Schefferville.

The Ministère des Transports reserves the right to modify the list of eligible destinations, according to the evolution of the health emergency.

Eligible expenses

The following expenses are eligible :

- operating costs;

- administrative costs;

- aircraft cleaning and disinfection costs;

- costs related to measures put in place to screen passengers for COVID-19;

with the exception, in particular, of expenses for which reimbursement was provided for by another form of public financial assistance at the time the application was submitted.

LINKS

See information on Assistance Program for Maintaining Essential Regional Air Services in Times of Health Emergencies here.

Conversion of industrial activities

DESCRIPTION

Pursuant to section 31.0.12 of the Environment Quality Act, companies that are reorganizing their operations to provide essential products related to the pandemic are not required to obtain ministerial authorization if they are in one of the following two situations:

- Increasing production of a product that they were already producing;

- Temporary modification of routine activities to provide a new product. These include equipment that could be modified or facilities that could be quickly reorganized to meet medical needs, including the manufacture of personal protective equipment such as gloves, masks and gowns, disinfectants, wipes, respirators and other medical equipment and supplies. These activities are identified on the Government of Quebec's Web site.

ACCESSIBILITY AND ELIGIBILITY

Eligible carriers

- Quebec-owned carriers offering scheduled commercial air services to isolated regions of Quebec.

- Carriers licensed by the Canadian Transportation Agency to operate scheduled flights.

- Air carriers operating international commercial flights are not eligible for this program.

Eligible air services

Eligible air services are those whose final destination is one of the following isolated regions:

Nunavik;

Eeyou Istchee James Bay;

the Lower North Shore;

Anticosti Island;

Îles-de-la-Madeleine;

Fermont;

Schefferville.

The Ministère des Transports reserves the right to modify the list of eligible destinations, according to the evolution of the health emergency.

Eligible expenses

The following expenses are eligible :

- operating costs;

- administrative costs;

- aircraft cleaning and disinfection costs;

- costs related to measures put in place to screen passengers for COVID-19;

with the exception, in particular, of expenses for which reimbursement was provided for by another form of public financial assistance at the time the application was submitted.

LINKS

See more information on the conversion of industrial activities here.

Promote buying locally with LePanierBleu.ca

DESCRIPTION

The Blue Basket is an initiative supported by the Government of Quebec to boost local commerce.

LePanierBleu.ca is a comprehensive directory of local merchants throughout the province. A powerful search engine will quickly be added to help locate products sold by our merchants and thus simplify as never before the local purchase. It is also a universal tool to easily identify local merchants who, during the crisis, are maintaining their sales activities. The first objective of the Blue Basket is to guide consumers to Quebec merchants in order to stimulate their sales.

LINKS

See more information on LePanierBleu.ca website here (only in French).

Click here to continue reading ....

Read the original article on GowlingWLG.com

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.