FAQ – Emergency Assistance to Small and Medium-Sized Businesses

Below you will find an FAQ about the Emergency Assistance to Small and Medium-Sized Businesses program.

Q: Is my business eligible for the Emergency Assistance to Small and Medium-Sized Businesses?

A: Before you apply, please make sure you meet these four eligibility requirements:

• your business must be located in Montréal;
• your business must have been in operation for at least 6 months;
• you must not be under the protection of the Companies' Creditors Arrangement Act (RSC 1985, Chapter 36) or the Bankruptcy and Insolvency Act (RSC 1985 Chapter B-3);
• you must not have benefited from the Québec government's concerted temporary action program for businesses (PACTE).

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Q: Is the Emergency Assistance to Small and Medium-Sized Businesses a repayable contribution?

A: Yes, the assistance comes in the form of a loan for a maximum amount of $50,000 at an interest rate of 3%, repayable according to the conditions provided. Companies eligible for the Assistance for Businesses in Regions Under Maximum Alert (ABRUMA) component will be able to have the equivalent of up to 80% of their loan granted under the Emergency Assistance for Small and Medium-Sized Businesse program forgiven.

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Q: Will my company benefit from a moratorium on capital and interest on the Emergency Assistance to Small and Medium-Sized Businesses?

A: A three-month moratorium on principal and interest will automatically apply to all loan agreements.

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Q: Are businesses that derive a majority of their revenues from the sale of alcohol eligible?

A: Yes, bars and theatres where a large part of the income is from the sale of alcohol are eligible.

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Q: My business is an essential service, my operations are being maintained, but expenses have increased significantly to comply with the new requirements of COVID-19. Am I eligible?

A: Yes, as long as you present evidence of those expenditures and show how the company's operations have been directly affected by COVID-19 (e.g., purchase of supplies to protect employees and comply with the requirements of an essential service that must maintain its operations).
The component involving Assistance for Businesses in Regions Under Maximum Alert (ABRUMA) applies to businesses subject to a closure order to protect the health of the population during the COVID-19 pandemic.

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Q: I have received emergency assistance from the Federal Government of Canada, is my business eligible for the Emergency Assistance to Small and Medium-Sized Businesses as well?

A: Yes, businesses can combine this loan with the loan obtained through the Canadian Emergency Business Account. However, the assistance granted cannot be combined with assistance obtained under the Québec government’s concerted temporary action program for businesses (PACTE).

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Q: Is the assistance granted by the Emergency Assistance to Small and Medium-Sized Businesses automatically $50,000?

A: No, assistance will be provided in the form of a loan up to a maximum of $50,000.

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Q: My business is located in an area affected by major construction work, should I mention this in the application for financing?

A: Businesses located in these sectors will have the opportunity to mention this when they apply for financing.

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Q: Are social economy enterprises eligible for the Emergency Assistance to Small and Medium-Sized Businesses?

A: Yes, social economy enterprises (cooperatives and not-for-profit organizations with market activities) are eligible.

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Q: What is food loss assistance?

A: Restaurants that benefit from financial assistance under the Assistance for Businesses in Regions on Maximum Alert (AERAM) section are eligible for additional loan forgiveness (a non-repayable contribution) up to maximum of $10 000 per establishment to cover the cost of unused perishable items. The additional assistance does not apply to alcoholic products. The eligible expenses must have been incurred between December 15 and 30, 2021.

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Q: I applied for financing online, but I haven't heard back from you yet.

A: If you received a confirmation email, there is no need to call us; we are currently processing your request.

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Q: What is the deadline to submit an application?

A: Applications for financial assistance under the AERAM section must be received not later than four weeks after the resumption of the operations of the businesses subject to a closure order.

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Q: How can I find my PME MTL service centre?

A: PME MTL’s consulting support and financing services are offered to entrepreneurs in the Montréal region, according to the borough or city where the business is located. Enter your company's postal code here to find your PME MTL service centre.

Related content

• Emergency Assistance to Small and Medium-Sized Businesses
• COVID-19 update