Operating a small business is not an easy task during the COVID-19 pandemic. Readjusting your costs and downsizing are a few of the difficult but necessary choices to make in order to navigate through an uncertain market. Some industries, like the events and photography ones are left paralyzed due to cancellations, and the demand for products and services are reduced across the board.
We’ve gathered a few short-term financial solutions to help you and your business keep your cash flowing – just enough to stay operational until we can finally reach a “new normal”.
This is a taxable benefit providing $2000 per month for up to four months for workers who lose their income as a result of the COVID-19 Pandemic.
They are for individuals that:
It also applies to:
Learn more about the CERB and if you are eligible here: https://www.canada.ca/en/services/benefits/ei/cerb-application.html
Subsidy provided by the government to Canadian business owners whose business has been affected by COVID-19. The government will cover 75% of employee wages for up to 24 weeks, starting between March 15th to August 29th, 2020.
They are a Montreal organization providing financial support for entrepreneurs and small to medium businesses of all kinds.
The financial aid will take form as a loan reaching up to $50 000.000 at an interest of 3%.
Brief list of Requirements
For full details on this loan: https://pmemtl.com/en/centre/services/financing/loans-and-subsidies/emergency-assistance-sme-covid-19
Available funding for an entrepreneurial or development project in retail businesses.
Provides a grant of up to $25 000.00. The grant must not exceed 25% pf the total cost of the business project.
For full details on this loan follow this link: https://pmemtl.com/en/centre/services/financing/loans-and-subsidies/fonds-entrepreneuriat-commercial
PME MTL also provides financial support for young businesses and entrepreneurs, social development projects, sustainable industrial development projects and many more!
For a full list of loans and funds from PME MTL, select your area and click on “Funds” here: https://pmemtl.com/en/financing
These are government issued funds provided to small to medium business owners, in collaboration with Export Development Canada. Loan amounts can go up to $40 000.00 for small businesses and Not-For-Profits.
To apply, the borrower must:
For full details on this loan follow this link: https://ceba-cuec.ca/
This program is complex but can still prove useful to fund cash flow, operations and liquidity needs of small to medium enterprises.
Here’s a snapshot from their website to summarize these funds:
The full document and description for these loans can be found here: https://www.bdc.ca/en/documents/special-support/BCAP-program-overview-external.pdf
Provides Emergency financial relief for SME’s and NPO’s that are unable to access other federal programs or denied assistance under these programs, in order to help them stay in business.
This fund is supposed to help when you do not qualify for the major relief funds and emergency benefits or have not benefitted from federal government relief measures.
They will be in the form of direct or indirect emergency funding aimed at helping these businesses – if they lack liquidity and cash flow to remain in business. It is a one-time target payment initiative.
Loans of $40 000 or less are provided to most applicants and must be repaid according to a schedule provided. If 75% of the loan is repaid by Dec. 31st, 2022, the remaining 25% does not need to be repaid. Otherwise, the entire loan is considered repayable over a 3-year period, starting Jan. 1st, 2023.
For-profit businesses with annual sales of $250 000 and above can apply for loans of $40 000 or more.
Authorized recipients are businesses, co-operatives, not-for-profit organizations, business support organizations, and indigenous organizations.
Authorized costs include costs that help stabilize the SME’s and organizations and mitigate the impact of COVID-19, which were not fully covered by other federal relief measures. (Ex: equipment and machinery rental or leasing, wages and benefits, property taxes, insurance, etc.)
Need of assistance must be solely related to an immediate (one-time) financial pressure on liquidity and must be a consequence of COVID-19. It must be for a max. of 6 months, up until December 31st, 2020.
SimulAide is an online tool to assess whether you would be eligible for last-resort financial assistance. It uses the information you provide by answering a series of questions and identifies which aid sources you can seek. However, it does not indicate the amount of assistance for which you qualify. Note that only Quebec residents are eligible for financial assistance form the QC Government.
Here is the simulation page: http://www.simulaide.emploiquebec.gouv.qc.ca/index.php/728252
Finally, on the Quebec Government Website, there is another tool to identify which government assistance programs you would be eligible for during COVID-19. Click here to access this simulation assessment: https://www.quebec.ca/en/programmes-aide-gouvernementaux-covid19/
This sums up all the main funds and loans available to support entrepreneurs and small to medium businesses in Montreal. As you can see, there are many programs aimed at reaching all the different income groups, so hopefully you can find the solution to best suit your emergency business needs during this pandemic. Montreal is a city that supports it’s local business community; whether its from the government, from public organizations, banks, or even look to your friends and family – We come together to make sure we all get through this. Ça va bien aller!