All Our Solutions
Frequently Asked Questions PACTE
Frequently Asked Questions on Concerted Temporary Action Program for Businesses (PACTE), including conditions specific to the tourism industry and businesses located in a red zone and ordered to close
I am an Investment Québec client. Who should I contact?
- If 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 team will be pleased to give you more information about the program.
I do not have a business relationship with Investissement Québec. How should I proceed?
If your business is located in a red zone and has been ordered to close, contact our call centre at 1-844 474-6367.
In any other situation, follow these steps:
- The first step is to get in touch with your financial institution right away. This is an important step and involves working with your account manager to identify the flexible arrangements available to you in regard to your liquidity (such as a moratorium on principal repayment). Your financial institution is in the best position to assess the various options, so you should contact it first. It is the fastest way to obtain access to the liquidity you need.
- The type of financial support offered is a loan guarantee (also applicable to credit lines). To do so, Investissement Québec works closely with all the other financial institutions and federal agencies. Financing can also be offered as a loan from Investissement Québec.
- A loan guarantee is a guarantee to repay a percentage of a net loss related to a loan, line of credit or other financial commitment granted by a financial institution (lender) to a business.
- Once a solution has been found with your financial institution, it will contact the appropriate regional office of Investissement Québec directly. Our directory of experts will enable your institution’s account manager to quickly identify the person to contact.
- If you do not have access to funding from a financial institution, contact Investissement Québec Customer Service at 1-844-474-6367.
What industries are ineligible?
All industries are eligible, except for the following activities:
- Weapons manufacturing and distribution
- Games of chance and gambling (video lottery operations), combat sports, racing and other similar activities
- Any form of sexual exploitation, such as strip bars, escort agencies, brothels, erotic massage parlours and swingers’ clubs
- 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
What businesses are eligible for the enhanced PACTE program?
- To qualify for the enhanced PACTE program, businesses must be located in a red zone and have been ordered to close.
- Only businesses in the following categories are eligible:
- Arcades, amusement parks, tourist attractions and water parks
- Bars and discotheques, subject to the exclusions mentioned above
- Biodome-type museums, planetariums, insectariums, botanical gardens, aquariums and zoos
- Concert halls
- Libraries other than those operated by educational institutions, except for document loan desks
- Movie theatres and performing arts theatres, including performance venues
- Reception rooms
- Saunas and spas, except for personal care treatments provided on-site
- Sports training center
- Youth hostels
The funding recipient can be the establishment’s owner or a tenant occupying a commercial space.
Businesses will qualify for enhanced assistance for a given month if they were ordered to close by ministerial decree for at least 10 days in that month.
The funding granted covers the business’s needs as of October 1, 2020.
What expenses are eligible for the enhanced PACTE program?
- Following the moratorium on principal repayment, a sum equal to 100% of eligible building leasing or ownership expenses may be written off, up to a maximum of $15,000 a month, during the period in which establishments in red zones are closed, up to a maximum of 80% of the total of the loan.
- Expenses eligible for write-off are:
- School and municipal taxes
- Rent (the portion not covered by another government program)
- Mortgage interest paid
- Charges for public services such as electricity and gas
- Telecommunication charges
- Permit and association fees
Where can I find the Québec government’s official map of alert levels?
To qualify for the enhanced PACTE program, businesses must be located in a red zone and have been ordered to close. To see the map, click here .
What types of tourism establishments and attractions are eligible?
- Accommodation establishments with 4 to 300 rooms qualify, except for the following:
- Youth hostels
- Bed and breakfasts
- Tourist homes
- Educational establishments
- Tourist Attractions
- 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 Québecas an attraction and 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
- The categories of accommodation establishments are defined here .
Are businesses under the protection of the Companies’ Creditors Arrangement Act eligible?
- Businesses must not be under the protection of the Companies’ Creditors Arrangement Act or the Bankruptcy and Insolvency Act.
What does it mean when you say that refinancing is prohibited?
- This means that Investissement Québec will not finance pre-existing debts contracted with Investissement Québec or other financial institutions prior to the COVID-19 crisis.
- However, Investissement Québec may guarantee new financing. For instance, if the financial institution agrees to provide a new line of credit to a business to assist with its cash flow, or if a lender increases a client’s existing line of credit, Investissement Québec could then guarantee the new line of credit or the portion corresponding to the increase in the existing line of credit.
What is the minimum funding amount provided under the PACTE program?
The minimum amount of Investissement Québec’s financial assistance is $50,000.
There is no minimum financial assistance amount for the tourism industry.
The account manager at my financial institution doesn’t seem to be aware of the PACTE program. What should I do?
- All financial institutions have been informed of the program. However, it is possible that some employees have not yet been fully informed.
- We encourage you to contact them again and to tell them how they can get in touch with Investissement Québec’s regional teams by referring to our directory of experts.
- You can also share the link to our website, which explains the program .
Could Investissement Québec agree to guarantee a line of credit or an increase in a line of credit?
- In the case of a line of credit, the guarantee applies under the following specific conditions:
- New lines of credit
- Increases to existing lines of credit. In this case, IQ guarantees only the portion corresponding to the increase in the existing line of credit, at the established guarantee rate.
I am a real estate developer. Am I eligible?
- Please contact your financial institution to discuss what kind of flexible arrangements it can offer you.
- This is the fastest way to obtain assistance with your liquidity because your institution is already familiar with the details of your situation.
What can I do if my financing needs are less than $50,000, the minimum funding amount set by the PACTE program?
- The PACTE program covers liquidity shortfalls for needs in excess of $50,000, except in the tourism industry, for which there is no minimum financial assistance amount.
- However, the provincial government has announced new measures to support businesses with needs less than $50,000. You can find them here .
- The federal government has announced a loan program for needs of $40,000 or less. You will find more information on the program here .
- The BDC has a solution geared to business needs under $100,000. For more information, visit BDC's website .
- Assistance is also available from MRCs, through local investment funds (Fonds locaux d’investissement, or FLI) and local solidarity funds (Fonds locaux de solidarité).
Want to know more?
Dial 1 844 474-6367
Monday-Friday: 8:30 to 4:30