Concerted temporary action program for businesses
For businesses whose liquidity is affected by the repercussions of COVID-19
This new emergency funding measure provides ad hoc and exceptional support for businesses affected by the repercussions of COVID-19.
This financial assistance is available to businesses operating in Québec, including cooperatives and other social economy enterprises with commercial activities. Eligible businesses are those that find themselves in a precarious situation and temporary difficulty as a result of COVID-19. They must show that their financial structure offers realistic prospects for profitability. Businesses cannot be under the protection of the Companies’ Creditors Arrangement Act or the Bankruptcy and Insolvency Act.
Businesses must show that their cash flow issues are temporary and that the liquidity shortage stems from:
- A problem involving the supply of raw materials or products (goods or services)
- An inability, or a substantially decreased ability, to deliver goods, products or services
Applications will be reviewed on a case-by-case basis, according to the business’s circumstances and Investissement Québec’s management practices.
Specific Conditions for the Tourism Industry
Only the following tourist establishments and attractions are eligible:
Accommodation establishments with 4 to 300 rooms, excluding:
- Youth hostels
- Bed and breakfasts
- Tourist homes Resorts
- Educational establishments
- Accommodation establishments with 300 or more rooms
- A tourist attraction is defined as a place, location or product, developed or built, whether seasonal or year-round, that is able to attract visitors as a result of its distinctive qualities.
- Applications for financial assistance must cover only activities related to the attraction’s principal activity (for example, the aquatic activities portion of a water park’s operations).
- The attraction or the business operating the attraction that is the subject of an application for financial assistance must:
- Be registered on the Bonjour Québec site as an attraction or demonstrate its importance to regional and Québec-wide tourist offerings;
- Show that the attraction’s activities had been carried on for at least the last three years of operation;
- Show that the operator draws self-generated revenue and charges admission fees for the activity that is the subject of the application for financial assistance.
Exclusion for Complementary Activities
Complementary operating activities, such as accommodations, food services and retail operations, do not qualify for funding.
Specific Exclusions for Tourist Attractions
- Food services
- Festivals and events
- Casinos and games of chance
- Theatres and performance venues
- Industrial tours
- Corporations, tourism offices, municipalities and associations
- Municipal, paramunicipal, regional, provincial and federal government bodies
All industries are eligible, except for the following:
- Weapons manufacturing or distribution
- Games of chance and gambling, combat sports, racing and other similar activities
- Bars or any establishment where the most of its revenue is earned from alcohol consumption or slot machines
- Production and sale of tobacco and drugs along with services related to their use, except for projects involving pharmaceutical-grade products approved by Health Canada and having a DIN, or their ingredients, as well as R&D projects licensed by Health Canada
- Any activity whose main purpose is protected by the Canadian Charter of Rights and Freedoms (religion, politics, human rights advocacy, etc.)
- Any other activity that may offend public morals.
Details of Financial Assistance
- A loan guarantee is the preferred form of financing. Financing can also take the form of a loan from Investissement Québec.
- Investissement Québec aims to work in close cooperation with financial institutions and federal authorities in order to share risks
- For a line of credit guarantee, the guarantee is only applicable in the following specific conditions:
- New lines of credit
- Increases to existing lines of credit. In such case, Investissement Québec only guarantees the portion of the increase, based on the agreed upon collateral rate.
- The minimum funding amount is $50,000.
- Refinancing is prohibited.
- This measure is designed to shore up the business’s working capital.
Special conditions may apply.
Specific Conditions for the Tourism Industry
- There is no minimum financial assistance amount.
- Principal repayment is deferred for up to 24 months, and interest can be capitalized over a period of up to 24 months.
- Amortization: up to 60 months (excluding the principal and interest deferral periods)
- Businesses must show that they are able to return to profitability in the medium term.
- The loan is eligible for partial write-off, as follows: 25% of the total amount (principal and interest) paid off by the end of the 48th month (from the time repayment begins) can be written off, up to a maximum of $100,000 per tourist establishment or attraction.
Should you have any general questions about the Concerted Temporary Action Program for Businesses (PACTE), contact our call centre at 1-844-474-6367.
Our customer service centre will be pleased to provide you with more information about the program.
Please note, however, that in the current COVID-19 situation, your financial institution is in the best position to assess the options best suited to your business. You should therefore contact the account manager at your financial institution first. This will be a key step allowing you to identify, with your account manager, the relief measures to which you may be entitled (i.e., deferral of principal payment) for your cash flow plan.
For any other situation
For any other specific questions regarding financing that you already have with Investissement Québec, please contact your account manager directly. To find your account manager’s contact information, please refer to our online directory.