$ 44 million for SMEs: We are building a robust microfinance network throughout Quebec, stresses Minister Jolie

Written by Godlove Kamoa, Local Press Initiative

The Canadian Economic Development for Quebec Regions (CED) provides this support to the Network of Future Community Development Companies (SADC) and Business Assistance Centers (CAE), to PME Montreal and to eight regional organizations to provide financing or technical assistance services to companies in need.

To meet the liquidity needs of SMEs and businesses in rural communities experiencing cash flow strains, PME Montréal will receive $ 12 million in support and the network of CFDCs and chief audit executives will benefit from two additional contributions totaling $ 28.4 million. About $ 3.4 million is spent on technical assistance services through organizations such as the Chambers of Commerce.

This technical component should address the need for strategic advice to specific problems such as the issue of human resources or the information technologies required for digital transformation. According to the Minister of Economic Development and Official Languages, Melanie Jolly, this assistance provided until the end of June will allow, above all, to “reduce risks in decision-making and survive the epidemic.”

“There is a light at the end of the tunnel,” she concluded in an interview about this support, which targets nearly two thousand companies and 7,000 job opportunities in Quebec. Ms Jolie said she was aware of the main debt concern, but as a solution, she pointed to other forms of support such as the emergency wage subsidy or assistance with rent and fixed costs. In addition, a portion of the loan is converted into a subsidy, depending on the entrepreneur’s solvency level.

Recapitalization and Strike Force

CFDs started with an annual budget that ranged between 30 and 100 million dollars during the period of the epidemic and has accumulated so far about 130 million dollars, according to the minister’s estimates. Money earmarked for loans that the Southern African Development Community or Montreal SMEs will give to companies will not be compensated for the federal government. PME Montreal, which was not often funded by Ottawa, is said to benefit from an additional support of $ 42 million to invest in other businesses.

“Imagine the striking force we just created.” Melanie Jolly said, speaking of what she called “legacies.” Pandemic “We have just recapitalized these organizations by giving them more means to make other loans in the future, and we’re building a much stronger smaller credit network. Quebec, which is home to this pilot phase of vision, is presented as a featured province.

Minister Jolie did not deny the findings of the Canadian Federation of Independent Business that one in five companies will disappear after the pandemic. She acknowledged that “some sectors are affected more than others, and promised” to continue discussions with the union, especially on the subject of arts, culture and aviation companies or related sectors that are victims. Consequences of sanitary measures; Actions essential to the survival and health of Canadians. ”They fuel hope that everyone will resume investment and vigorous activity on easing restrictions.

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