PME MTL powers the post-pandemic recovery of Montreal businesses

PME MTL powers the post-pandemic recovery of Montreal businesses through support that reached 20.6million dollars in 2022

The resilience shown by businesses is now applied to economic development

Montreal, May 30th, 2023 – PME MTL, the City of Montreal’s network dedicated to supporting businesses, presents its first post-pandemic report. Over the course of 2022, more than 20.6million dollars in loans and grants were invested to support and mobilize socio-economic development on the Island of Montreal. This financial support generated contacts and collaborations between the PME MTL network’s expert partners and numerous Montreal entrepreneurs, thereby supporting the development of multiple projects as the overall economy isregaining momentum.

After quickly adjusting its programs in 2020 to meet the urgent needs of businesses, which were being hit by the economic upheavals associated with the COVID-19 pandemic, PME MTL reoriented itself again during 2022 in order to resume its primary mission and support the development of local businesses active in several sectors, whether their objectives are profit-based or social economy-based.

Thus, the added value that PME MTL offers is seen in its ongoing support of Montreal businesses, allowing them to grow, to develop, and to contribute to the community’s economic and social wealth.

"Nearly 4000businesses have received financial assistance totalling $20 million. These are impressive results, and I would like to reiterate my full confidence in the PME MTL network, a leading player in supporting the start-up and growth of SMEs. I would also like to thank them for their masterful management of the emergency funds entrusted to them during the pandemic, to support the entrepreneurial sector, and for their precious contribution to Montreal's green, sustainable and inclusive recovery.” said Luc Rabouin,responsible for economic and commercial development, knowledge, innovation and design on the Executive Committee of the City of Montreal.

2022 highlights: Support

During 2022, nearly 4,000 businesses benefited from the support offered by PME MTL and the various expertise of its partner network.

In terms of allocation, much of the support went to 809 Montreal businesses active in retail (32.56%) and industrial and sustainable development (23.44%), for a combined figure of 56.0%.

15.79% of the support served to bring innovations to market, and as a further indication of economic recovery on the worldwide scene, 9.68% of the support and knowledge-sharing went to guiding development initiatives aimed at markets outside of Quebec.

However, PME MTL notes a reduction in the number or organizations which received support in 2022, a decrease of about 10% when compared to 2021.

2022 highlights: Development stages

In regard to development, slightly over half of the businesses which received support recorded marginal growth last year (+2% on average for 2,147 companies). This demonstrates that the post-pandemic recovery is progressing and not stagnating, although it did so modestly over the entire course of 2022.

A third of the businesses supported by PME MTL, meaning 1,315 entities, were projects in pre-startup and start-up stages (an increase of 10% when compared to 2021) or in consolidation phases (down 12% last year).

2022 highlights: Financial support

Of the 3,967 Montreal businesses accompanied, 393 obtained financial support following their validation by PME MTL. Regarding the allocation of financial assistance, 56.49% of the $20.6million envelope went to for-profit companies and 43.26% supported Montreal social economy businesses, while 0.25% of the financial support helped a not-for-profit organization.

The 2022 funds were shared in almost equal parts between development needs (50.89%) and pre-startups, startups, consolidations, and transfers or acquisitions (49.11%). However, of the 20.6million dollars available, development needs obtained 14million dollars in support, and startups received nearly 5million dollars to help them launch their operations, representing the vast majority of the amounts awarded.

Among the business sectors which most called upon the services and advice provided by PME MTL, manufacturing (19.34%), lodging and food services (15.78%), professional, scientific and technical services (15.52%), retail (13.49%), and arts, entertainment and recreation (7.63%) make up the Top 5 positions of 2022.

Major support during the pandemic

When analyzing its 2022 report, PME MTL saw another indication announcing the beginning of the post-pandemic period and a gradual return to normalcy: a reduction in the financial assistance required for businesses to survive. The COVID-19 pandemic caused an impressive increase in the amounts of emergency loans and grants supplied by PME MTL, which were followed by financial assistance programs serving to support the economic recovery.

It should be noted that in 2020, $88.3million served to support Montreal businesses and organizations as the shock resulting fromthe economic downturn and uncertaintywas in full effect during the first year of the pandemic. In 2021, the total amount remained high at $77.4million, again through agreements with the City of Montreal, the Government of Quebec and the Federal Government. In 2022, as the post-pandemic recovery slowly grew, the amounts dedicated to emergency needs dropped to $38.3million, although this amount remains significant.

PME MTL expects to see the activities of Montreal businesses continue to gain speed in 2023 and reiterates its commitment to accompany them during this period of post-pandemic recovery.

About PME MTL

PME MTL is a support network for businesses in Ville de Montréal that provides a range of professional services to entrepreneurs fromthe private sector and the social economy located on the Island of Montréal. It is a key player in supporting the launch and growth of SMEs, and guiding entrepreneurs with expert management advice and the provision of funding. PME MTL acts as a true catalyst in developing entrepreneurship, working hand-in-hand with a vast network of partners and bringing together entrepreneurs with various experts, stakeholders, program managers and financial assistance. https://pmemtl.com/en

Media contact

Simon Faucher Consultant
(514) 402-3873
sfaucher@zonefrancherp.com