The Minister of the Economy Pierre Fitzgibbon will reveal before the summer the terms of reimbursement of the financial aid granted to companies affected by the pandemic.
The Emergency Assistance Program for Small and Medium-Sized Enterprises (PAUPME) and the Temporary Concerted Action Program for Businesses (PACTE) provided for a moratorium set for June 30, 2022 for the start of repayment of capital and interest on loans received. .
In an interview that followed a first part on the study of the credits of his ministry, Mr. Fitzgibbon explained that the reimbursement conditions must be adapted to the situation of the companies benefiting from these two programs, set up at the beginning of the year. state of health emergency in March 2020.
“We cannot have an approach for the 15,000 companies,” he said on Tuesday. I want us to announce publicly to the world, by the end of the parliamentary session, how it will work. »
Mr Fitzgibbon said it will have to be taken into account that some companies will be able to repay loaned funds more quickly than others.
“It’s not up to the government to decide that it’s going to be [sur une période de] 32 months, he said giving this example. There is a danger in doing that, because there are some who will not be able to respect it and there are perhaps some who should be able to pay beforehand. Is there an incentive to put in place? We are thinking about that. »
Mr. Fitzgibbon’s office explained on Tuesday that the moratorium before the start of loan repayments could vary according to the companies, in order to take into account their situation.
PAUPME rules provide for amortization of up to 60 months, the minister said. As for the PACTE, these provide for amortization of 36 to 96 months, according to the Investissement Québec website.
The Minister indicated that the financial aid distributed by the PACTE amounted to 1.1 billion dollars while it is 520 million for the PAUPME. Of this last sum, 300 million have been converted into grants, he explained.
In November, a report by Auditor General Guylaine Leclerc revealed irregularities in the administration of these two programs.
End of programs
PAUPME and PACTE are scheduled to cease their activities four weeks after the lifting of the state of health emergency, which gave exceptional powers to the government to manage the pandemic.
A government bill is currently under consideration to end this state while maintaining certain powers until the end of the year.
“If the bill passes on June 1, businesses would have four weeks to apply,” he said.
Mr. Fitzgibbon said the number of applications for corporate financial assistance has plummeted, indicating that the two programs will soon no longer be needed.
“There isn’t much activity now, the bulk is over,” he said.
Get it right
In parliamentary committee, Mr. Fitzgibbon explained that once the PACTE and PAUPME are completed, companies will have access to the aid provided for in particular by existing programs, such as ESSOR. Other financial aid could be put in place if ever the situation required it.
“If we are wrong, we will adjust,” he told his fellow MPs.
Liberal MP Marc Tanguay warned the Minister against the risks of ending temporary assistance programs too quickly. According to him, the risk of business closures remains.
“If you’re wrong it’s going to be measured in closures, so you just have to be proactive and not be wrong,” he said. We don’t have the luxury of being wrong. »
Mr. Fitzgibbon expressed confidence that the government’s balance sheet will be good without specific measures to combat economic uncertainties.
“Without being pretentious, the experience of the past two years has shown that the government has done well because business closures are 30% lower than they were,” he said.
In the House, Mr. Fitzgibbon then clarified that this statistic, on the number of companies that have gone bankrupt or have placed themselves under the Companies’ Creditors Arrangement Act, was an average of the last two years compared to 2019.
His Liberal opponent objected that bankruptcies increased by 10% in Quebec during the last year, while they decreased by 7% in Ontario.
“The minister says the indicators are green. It’s not true, ”dropped Mr. Tanguay.