The Emergency Assistance for Small and Medium-Sized Businesses program is designed to offer temporary support to businesses experiencing financial hardship due to COVID-19 and who need $50,000 cash or less.
The following businesses are eligible for the program:
- businesses in all industry sectors;
- social economy enterprises, including cooperatives and not-for-profit organizations involved in commercial activities.
Eligible companies must:
- have been in operation in Québec for at least one year;
- be temporarily closed, likely to close or showing signs of closure;
- be at a stage of maintaining, consolidating or relaunching their operations;
- demonstrate a causal link between their financial or operational hardship and the COVID-19 pandemic.
Applicants who are under the protection of the Companies’ Creditors Arrangement Act (LRC, 1985, chapter 36) or the Bankruptcy and Insolvency Act (LRC, 1985, chapter B-3) are ineligible.
Assistance stream for businesses in regions under maximum alert (ABRUMA)
In order to support businesses that must partially or completely cease operations because they are located in a maximum alert zone (red zone), a new stream has been created within the Emergency Assistance for Small and Medium-Sized Businesses. The Assistance for Businesses in Regions Under Maximum Alert (ABRUMA) will consist of a non-repayable loan (loan forgiveness) subject to the following criteria:
- applies to loans granted as part of the Emergency Assistance to Small and Medium-Sized Businesses program;
- is equal to certain core operating costs payable for the targeted closure period, including:
- municipal and school taxes,
- rent (the part not covered by another government program),
- interest on a mortgage,
- utility costs (e.g. electricity, gas),
- telecommunication costs,
- association fees and licenses.
Loan forgiveness amounts will cover up to 80% of eligible core operating costs to a maximum of $15,000 per month of closure.
Eligible businesses must:
- be located in a red zone, where certain businesses have been ordered to close due to the COVID-19 situation;
- be the subject of a Ministerial Order to close lasting at least 10 days out of the month.