Is your business affected by a closure order?
You could benefit from the Small & Medium Business Emergency Assistance Program (PAUPME)
Businesses subject to a closure order as of December 20, 2021 to protect the health of the population in the context of the COVID-19 pandemic may again apply for financial assistance under the Aide aux entreprises en régions en alerte maximale (AERAM) component of the Aide d’urgence aux petites et moyennes entreprises (PAUPME) program.
Need more information on business assistance measures?
Please contact the MRC Pontiac Economic Development Department at developpement@mrcpontiac.qc.ca; 819-648-5689 ext. 134.
Do you own a restaurant?
Restaurants that receive funding under the AERAM component are eligible for an additional non-repayable contribution of up to $10,000 per establishment to cover the costs of unused perishable items.
Need more information on business assistance measures?
Please contact the MRC Pontiac Economic Development Department at developpement@mrcpontiac.qc.ca; 819-648-5689 ext. 134.
PAUPME
The PAUPME aims to support, for a period not exceeding 6 months, the working capital of SMEs so that they are able to maintain, consolidate or restart their activities.
The financing covers the working capital requirements necessary to maintain the company’s activities. It is determined on the basis of justified and reasonable expenses as well as on the basis of a recovery plan demonstrating good prospects of profitability in the medium term. The financing must make it possible to compensate for the lack of liquidity caused by:
- an impossibility or substantial reduction in the capacity to deliver products (goods or services) or goods
- a problem with the supply of raw materials or products (goods or services)
- a slower recovery of the company’s activities due to the COVID-19 pandemic.
Assistance will be provided in the form of a loan or loan guarantee of up to $50,000 as follows:
- 3% interest rate;
- 3 month moratorium on principal and interest repayment, which may be extended to March 31, 2022;
- an additional 12-month moratorium on principal repayment;
- amortization of the loan over 36 months following the moratorium;
- possibility of amortizing the loan repayment up to 60 months following the moratorium.
In the context of the reactivation of a business, additional financial assistance of up to $50,000 may be added to that already granted under the program.
However, the total value of financial assistance granted to a business cannot exceed $150,000 at any time within a 12-month period.
Applications for financial assistance under the PAUPME program may be submitted no later than four weeks after the health emergency is lifted.
For applications of $50,000 or more, visit the
Temporary Concerted Action Program for Business (PACTE) , administered by Investissement Québec.
In addition, the federal government has put in place support measures related to rent and property expenses and wages through the following programs:
– Tourism and Hospitality Stimulus Program (THRP);
– Hardest Hit Business Recovery Program (HHBRP);
– Canadian Recovery Hiring Program (CRHP).
Eligible Clients
The following businesses are eligible for the program
- businesses in all sectors of activity
- Social economy enterprises, including cooperatives and non-profit organizations carrying out commercial activities.
Applicants under the protection of the Companies’ Creditors Arrangement Act (R.S.C. 1985, c. C-36) or the Bankruptcy and Insolvency Act (R.S.C. 1985, c. B-3) are excluded.
All industries are eligible, with the exception of the following activities
- the production or distribution of weapons
- gambling, combat sports, racing or similar activities
- the production, sale and services related to the use of tobacco or drugs, with the exception of projects involving Health Canada licensed pharmaceutical grade products with DINs, or their ingredients, and research and development projects with a Health Canada license
- any activity whose primary purpose is protected by the Canadian Charter of Rights and Freedoms (religion, politics, advocacy, etc.)
- any other activity that would be of a nature to offend morality. For example, establishments whose activities are of a sexual nature: an erotic bar, an escort agency, a house of prostitution, an erotic massage studio or a swingers club.
To be eligible, the business must:
- Be in operation in Quebec for at least six months;
- be temporarily closed, likely to close or show signs of closure (only for applications submitted under the Aid to Businesses in Regions on High Alert component and the Aid to Certain Businesses in the Tourism Sector component)
- be in a context of maintenance, consolidation or re-launch of its activities
- have demonstrated a causal link between its financial or operational problems and the COVID-19 pandemic.
AERAM
Assistance to Businesses in Regions on High Alert (AERAM) component
In order to support establishments affected by a closure order, the Assistance to Businesses in Regions on High Alert (AERAM) component allows for a loan forgiveness (non-repayable financial assistance) under the following conditions
- it applies to loans made under the PAUPME after December 20, 2021;
- It covers the portion of eligible fixed costs not claimed under another government program and disbursed for the closing period in question, namely
- Municipal and school taxes,
- rent,
- interest paid on mortgages
- utility costs (e.g., electricity and gas)
- insurance
- telecommunication costs,
- licenses and association fees.
Salaries, benefits, employer and employee contributions, taxes and other fixed costs are excluded from the expenses eligible for forgiveness.
The loan forgiveness will be up to 100% of eligible fixed costs, to a maximum of $15,000 per month of closing. The forgiveness will not exceed 80% of the amount of the PAUPME loan.
The moratorium on the repayment of principal and interest related to financial assistance granted under the AERAM component of PAUPME is extended to March 31, 2022.
To be eligible, facilities must:
- Be subject to a closure order to protect the health of the population in the context of the COVID-19 pandemic;
- have ceased operations for a period of at least seven days in any one month in accordance with a ministerial order.
Applications for financial assistance under the AERAM must be received no later than four weeks after the businesses affected by a closure order have resumed operations.
Business Resumption Bonus
In order to facilitate a return to normal operations, businesses that are eligible for AERAM will be able to obtain additional support under the PAUPME. A business could benefit from additional financial assistance of up to $50,000 to cover its liquidity needs, for a total assistance of up to $150,000.
This additional support represents the equivalent of one, two or three months of additional loan forgiveness (non-repayable financial assistance), over and above the previous months’ forgiveness, which can be claimed when the business reopens.
For businesses closed for 90 days or less
The maximum additional amount that can be paid is $15,000 per establishment. This additional support must cover fixed costs incurred in the month following the reopening of the business in question.
For businesses closed for a period between 91 and 180 days
The maximum additional amount that can be paid is $30,000 per establishment, or $15,000 per month. This additional support must cover fixed costs incurred during the two months following the reopening of the business in question.
For businesses closed for more than 180 days
The maximum additional amount that can be paid is $45,000 per establishment, or $15,000 per month. This additional support must cover fixed costs incurred during the three months following the reopening of the business in question.
This bonus is added to the loan forgiveness of the previous months, up to a maximum of 100% of the financing granted.
It should be noted that the period for submitting applications for financial assistance under the Assistance to Businesses in Regions on High Alert (AERAM) component for the period from October 2020 to June 2021 has ended, since these applications had to be received no later than four weeks after the resumption of activities of the businesses affected by a closure order.
Support to Selected Tourism Businesses Component
Under the Assistance to Certain Tourism Sector Businesses component of the PAUPME, bed and breakfasts with four or more rooms (for the commercial portion) and travel agencies will benefit from the following conditions:
- The ability to convert 40% of the repayment (principal and interest) within the first 24 months of repayment to a maximum of $20,000 per establishment;
- A 12-month moratorium on principal and interest payments. This moratorium may be extended to March 31, 2022;
- The ability to amortize the loan repayment for up to 60 months following the moratorium.
To be eligible, bed and breakfasts with four or more rooms (for the commercial portion) must be registered on the Bonjour Québec website.
To be eligible, travel agencies must hold one of the following permits issued by the Office de la protection du consommateur du Québec
- General travel agent’s permit;
- Restricted travel agent permit (adventure tour operator);
- restricted travel agent (outfitter) licence.
Travel agencies are not required to be registered on the Bonjour Québec website.
Finally, it is important to note that businesses in the tourism sector may submit their applications under this component up to four weeks following the latest of the following dates
- the lifting of the state of health emergency;
- the complete opening of the Canada-U.S. border (already done).
How to Apply
Please download, print and complete the application form and return it by email to Cyndy Phillips, Director of Economic Development. Please remember to include the essential information listed below. A development officer will contact you as soon as possible, while respecting the holidays, to open your file and start the process.
Be prepared!
As this is a loan application, the following documents may be required at the time of filing
- the most recent financial statements;
- Most recent interim financial statements;
- Cash flow budget or cash flow forecast;
- Business recovery plan
- Supporting documentation for monthly fixed costs (lease, assessment notices, tax notices [municipal and school taxes], mortgage contract, insurance contract, utilities, telecommunication services, permits, service bills, etc.)
Formulaire-PAUPME-incluant-AERAM
Documents required with the form:
- Latest annual financial statements
- Income statements updated since the last annual financial statements
- Cash flow forecast for the next 3 months
