COVID-19 Response Plan - Quebec Government - Support for Canadians

QC Support for Businesses

Tax Filing and Payment Deadlines

Eligibility

• Normal filing deadlines apply

Credit for Employer Contributions to Health Services Fund (closed)

Eligibility

• An employer that, during the year, maintains an establishment in Quebec and is a qualifying entity for a qualifying period, as determined by the federal CEWS program

Benefit

• Credit equal to total amount of contribution to Health Services Fund paid by specified employer with respect to wages paid to certain employees on paid leave

Action Needed

• Specified employer may reduce periodic payments of employer contribution of Health Services Fund
• Additional information available:
  • Finances Québec Information Bulletin

Emergency Assistance to Small and Medium-Sized Enterprises (PAUPME)

Eligibility

• Companies from most sectors of activity are eligible for the program, as well as social economy enterprises (including cooperatives and non-profit organizations carrying out commercial activities)
• To be eligible, the business must:
  • Have been in business in Quebec for at least six months
  • Be closed temporarily, likely to close or show warning signs of closure
  • Be in a context of maintaining, consolidating or relaunching its activities
  • Have demonstrated a cause and effect link between their financial or operation problems and the COVID-19 pandemic

Benefit

• Loans of less than $50,000 (up to $100,000, under additional support enhancement for the resumption of operations)

• 3% interest rate, 3 month moratorium on payment principal and interest repayment until September 1, 2021(up to 12 month), 36 month amortization (up to 60 months)

• Possibility of additional 12-month moratorium on principal repayment

• 36-month loan amortization following moratorium with possibility of 60-month amortization

Action Needed

• The following documents may be required when applying:
  • Most recent year-end financial statements
  • Most up-to-date interim financial statements
  • Cash budget or cash flow forecast
  • Supporting documents for other costs
• More information can be found here

Assistance for Businesses in Regions on Maximum Alert (ABRUMA) / 
Aide aux entreprises en régions en alerte  maximale (AERAM)

• Must first have obtained a loan through PAUPME program
• Be subject to a closure order for public health due to COVID 19

Benefit

• 100% of fixed expenses up to $15,000 per month, up to 80% of total PAUPME loan, granted as loan forgiveness
• Additional support for resumption of operations, additional $50,000 loan under PAUPME and maximum of $15,000 additional forgiveness (if closure less than 90 days) or $30,000 (if closure longer than 90 days)
• Eligible expenses are reduced by other support received (e.g. CERS)
• Starting from May 15, 2021, businesses may be eligible for loan forgiveness to cover fixed expenses incurred in 3-month period preceding application, and subsequent months; amount of loan granted will not cover needs extending beyond June 30, 2021

Action Needed

• Contact local PME MTL office (Montreal regions) or regional economic development authority / Local Investment Fund (list here) 
• Submit financial statements, interim statements, cash budget or cash flow predictions, and documentation for monthly fixed expenses (lease, notice of assessment, property tax notices, mortgage contract, insurance contract, public services, telecommunications services, licences, invoices, etc.)
  
   

Concerted Temporary Action Program for Businesses (PACTE)

Eligibility

• 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; businesses must show that their cash flow issues are temporary and due to:
  • A problem involving the supply of raw materials or products, or
  • An inability, or a substantially decreased ability, to deliver goods, products or services
• Eligible businesses may also include those located in red zones (subject to mandatory partial or full closure of operations)
• Special conditions also offered for tourism industry businesses registered on Bonjour Québec website
• Businesses cannot be under the protection of the Companies’ Creditors Arrangement Act or the Bankruptcy and Insolvency Act

Benefit

• A loan guarantee is the preferred form of financing; financing may also be a loan from Investissement Québec
• A line of credit guarantee is only applicable under the following conditions:
  • New lines of credit
  • Increases to existing lines of credit (guarantee for portion of increase only)
• Minimum funding is $50,000
• Refinancing is prohibited
• Certain businesses eligible for additional assistance – Assistance for Businesses in Regions on Maximum Alert (AERAM)

Action Needed

• Application is through financial institutions
• More information can be found here

QC Support for Individuals

Tax Filing and Payment Deadlines

Eligibility

• Normal filing, instalment and payment deadlines apply for 2020 tax year.  However interest relief for 2020 balance will be granted if both the following conditions are met:
• Taxable income for 2020 is $75,000 or less
• Received benefits under either the IPREW, CERB, CESB, EI or any of the Canada Recovery Benefits (CRB, CRSB, or CRCB)

Benefit

• Relief from interest on unpaid tax balances for the 2020 year, until April 30, 2022
• Solidarity credit will not be withheld to pay down unpaid balance 
• Late filing penalties will still apply if income tax return is filed after April 30, 2021

Action Needed

• Automatically applies if conditions are met

Refundable Tax Credit for Childcare Expenses

Eligibility

• Individuals may be entitled to refundable tax credit if all of the following requirements met:
  • Resident in Québec on December 31, or resident in Canada, outside Québec, on December 31, and carried on business in Québec
  • Qualifying childcare expenses incurred

Benefit

• Refundable tax credit calculated by multiplying qualifying expenses by tax credit rate for family income

Action Needed

• To claim the credit, complete Schedule C of your income tax return or apply for advance payment here

Tax Credit for Home-Support Services for Seniors

Eligibility

• Seniors who already receive this tax credit and normally would have filed an application to renew advance payments on March 17, 2020, or later

Benefit

• Extension to April 30, 2021 to file the application for advance payments

Federal Support for Canadians

• For our summary of the Federal support programs for businesses and individuals, please visit HERE