Extension of the SME Emergency Assistance Program (COVID-19)

Lundi 19 avril 2021, par Martin Fecteau

Appalaches Regional County Municipality: Nearly $1.5 million awarded as of march 31, 2021

THETFORD MINES, APRIL 19, 2021. The Société de développement économique de la région de Thetford (SDE) wishes to inform SMEs in the Thetford area of new adjustments to the Emergency Assistance (PAUPME) program and the Peak Alert Business Assistance (AERAM) component. In response to recent announcements regarding tighter health care guidelines and to further alleviate the difficulties faced by businesses, both programmes are being extended until 30 September 2021. The financial aid granted will benefit from a moratorium until 1 September 2021 for the repayment of capital and interest.

As of March 31, the SDE has provided $1,464,000 in loans to local businesses through the Local Investment Fund (FLI). Of this amount, 73.3% of the 53 business loan files were in the restaurant, bar, and accommodation sectors. As such, the loan forgiveness (AERAM) represents more than $550,000 in these cases. It should be noted that 80% of the applications received were accepted and received financial assistance.

The following adjustments are now effective for businesses subject to a closure order:

An additional $10,000 to offset the cost of closing a restaurant or gym. This additional support applies to businesses that qualify for AERAM and is intended to support institutions that have recently resumed operations but have had to cease their activities under a new closure order in the context of the COVID-19 pandemic;
Additional funding for a non-refundable contribution of up to $45,000 for establishments that have been closed for more than 180 days, or $15,000 per month, for a fixed fee disbursed three months after the last month of eligibility under the closure. This additional contribution is in addition to the non-refundable contributions of previous months, up to a maximum of 100% of the financing provided for companies that have demonstrated cashflow needs;
Addition of businesses offering catering service in the category of restaurant owners, with the possibility of going back to January 1, 2021.

About the programs:

The PURPOSE of the PAUPME is to support working capital for SMEs with cashflow needs through loans of less than $50,000 so that they can maintain, consolidate, or restart their operations.
AERAM is aimed at companies benefiting from the PAUPME. It allows institutions subject to closure orders to obtain a loan forgiveness of up to $15,000 per month (maximum 80% of the loan amount granted) to pay certain eligible fixed fees.

The fixed fees eligible under the AERAM are:

municipal and school taxes;
Rent;
Interest paid on mortgages;
Utility costs (e.g. electricity and gas);
Insurance;
Telecommunications costs;
permits and membership fees.
This measure covers the portion of the unclaimed costs under another government program and disbursed for the target closure period.
The maximum loan forgiveness granted for the months of re-opening ($15,000) and for closing costs ($10,000) is 100% of the loan granted according to the company's cash requirements.

To apply for or for any information about this new component, or about the Small and Medium-sized Business Emergency Assistance Program, contact the Economic Development Commissioners at the SDE region Thetford at 418-338-2188 x221 or www.regionthetford.com/fr/region-de-thetford/l-equipe/. The SDE also invites businesses and organizations in the region to read a special information page on the COVID-19 crisis at the www.regionthetford.com/aide.

Information: Vicky Lachance, Economic Development Commissioner
commissaire@regionthetford.com / 418 338-2188 ext. 228

Source: Martin Fecteau, Communications and marketing advisor
(418) 338-2188, ext. 231 | communication@regionthetford.com

English version is made possible by Megantic English-Speaking Community Development Corporation (MCDC)