COVID-19

Emergency Assistance to Small and Medium-Sized Businesses

The Government of Québec's Aide d’urgence aux petites et moyennes entreprises (Emergency Assistance to Small and Medium-Sized Businesses) program is designed to promote access to capital as a means for businesses affected by the COVID -19 pandemic to maintain, consolidate or relaunch their activities. This program is among the measures taken to deal with the economic situation given the current extraordinary circumstances. Your PME MTL network is responsible for managing applications in the Montréal area.

April 1, 2022 update

The Assistance for Businesses in Regions on Maximum Alert (AERAM) section ended on February 28, 2022. Applications for financial assistance submitted in the context of this section had to be received not later than March 31, 2022. PME MTL is no longer accepting new applications for AERAM.

Applications for financial assistance submitted under the Emergency Assistance Program for Small and Medium-Sized Businesses (PAUPME) and through the Assistance for Some Businesses in the Tourism Sector (ACEST) can be submitted at the latest four weeks after the state of public health emergency is lifted, the date of which has not yet been announced.

Moreover, the moratorium on the repayment of principal and interest related to the financial assistance granted under the PAUPME can be extended until June 30, 2022.

Emergency Assistance to Small and Medium-Sized Businesses program (EASMSB / PAUPME)

Financial assistance

This emergency assistance for small and medium-sized businesses comes in the form of loans, up to a maximum of $50,000, at an interest rate of 3%.

  • A moratorium on principal and interest will automatically apply to all loans.
  • Borrowers should expect an amortization period of 36 months, excluding the payment moratorium. Exceptionally, amortization could be up to 60 months, excluding the payment moratorium.
  • The possibility of an additional 12-month moratorium on principal repayment;

This financial assistance may not be combined with assistance obtained under the Québec government's temporary concerted action program for businesses (PACTE program).

Eligible businesses

Eligible businesses include for-profit companies as well as cooperatives and social economy enterprises with market activities affected by the COVID-19 pandemic, with the exception of the following activities:

  • the production or distribution of weapons
  • gambling, slot machine operations, combat sports, racing or other similar activities
  • production, sales and services related to the use of tobacco or drugs (including convenience stores selling tobacco products) with the exception of projects involving Health Canada-licensed drug-grade products with a DIN, or their ingredients, and research and development projects with a Health Canada licence
  • any activity whose main purpose is protected under the Canadian Charter of Rights and Freedoms (religion, politics, advocacy, etc.)
  • any other activity that would be likely to offend public morality

Eligibility requirements

In order to benefit from this emergency fund, the company:

  • Must have been in operation in Québec for at least six months on the date of application*. 
  • Must not be under the protection of the Companies' Creditors Arrangement Act (R.S.C., 1985, c. C-35) or the Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3) 
  • Must demonstrate the causal link between its financial or operational issues and the COVID -19 pandemic as follows:
    • The company is temporarily closed, is likely to close or is showing signs of closure; and/or
    • The company is in a context of maintaining, consolidating or relaunching its operations.

In order to be eligible for emergency assistance:

  • The financing must provide short-term working capital to businesses whose financial situation is precarious so they can maintain, consolidate or relaunch their activities.
  • The financing must be related to the amount of working capital needed to maintain the company’s operations, determined on the basis of justified and reasonable expenses and showing good prospects for profitability in the medium term. Businesses located in an area affected by major construction works may mention this fact, which will be taken into account in the profitability analysis.

* Companies whose activities take place outside Montréal must contact the organization responsible for managing the Fonds local d'investissement (FLI) (Local Investment Fund) in their RCM.

Assistance for Businesses in Regions Under Maximum Alert

The component involving Assistance for Businesses in Regions Under Maximum Alert (ABRUMA) applies to businesses located in maximum alert zones (red zones) and in an impacted economic sector. It ended on February 28, 2022.

Assistance for Some Businesses in the Tourism Sector

Under the PAUPME program, tourist accommodation businesses with four or more rooms (in the commercial section of the building) and travel agencies qualify for the following benefits on loans up to a maximum of $50,000 :

  • Possibility of converting to loan forgiveness 40% of the amount reimbursed (principal and interest) during the first 24 months following the start of repayment up to a maximum of $20,000 per establishment.

To be eligible, tourist accommodation businesses with four or more rooms (in the commercial section of the building) must be registered on the Bonjour Québec website.

To be eligible, travel agencies must hold one of the following licences issued by Office de la protection du consommateur du Québec:

  • General travel agent’s licence
  • Restricted travel agent’s licence (adventure travel organizer)
  • Restricted travel agent’s licence (outfitter)

Travel agencies are not required to be registered on the Bonjour Québec website.

Documents required

Companies will have to submit the following documents for analysis to support their financing application:

Emergency Assistance to Small and Medium-Sized Businesses

  • Most recent financial statements - Balance sheet and Income statement (financial statements prepared internally may be acceptable in the case of a small business).
  • Most current interim financial statements.
  • Declaration to the Registraire des Entreprises du Québec (REQ).
  • Proof of DAS and GST/QST as at October 31, 2021, copy of an account balance of $0 (zero) obtained from ClicSÉQUR or proof of an agreement with Revenu Québec.
  • A cash budget or cash flow forecast.

Assistance for Some Businesses in the Tourism Sector

  • Most recent financial statements - Balance sheet and Income statement (financial statements prepared internally may be acceptable in the case of a small business).
  • Most current interim financial statements.
  • Declaration to the Registraire des Entreprises du Québec (REQ).
  • Proof of DAS and GST/QST as at October 31, 2021, copy of an account balance of $0 (zero) obtained from ClicSÉQUR or proof of an agreement with Revenu Québec.
  • A cash budget or cash flow forecast.
  • Travel agencies: a licence issued by Office de la protection du consommateur du Québec.
  • Tourist accommodation businesses: proof of registration on the Bonjour Québec website.

Submit an application

Businesses who wish to apply should act quickly as funds are limited. Only complete applications will be processed; however, a complete application does not guaranty any financial assistance.

Submit an application →

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PME MTL
Centre-Est

6224, rue Saint-Hubert

Montréal, Québec, H2S 2M2

514 723-0030
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