Quebec Response Team: COVID-19/Business Continuity - assets.kpmg
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Quebec Response Team: COVID-19/Business Continuity Government initiatives update Version 9: Tuesday June 16th, 2020 – 10:00AM CAUTION The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
Table of Contents New Government Initiatives 3 Timeline – Development of Important Government Measures 4 Overview – Government Initiatives 5 Government of Quebec 7 Government of Canada 26 Available Assistance Programs 65 Sources and Useful Links 67 Response Team Leaders 68
Version 9: June 16th 2020
New Government Initiatives Note that new/changes to measures since
our last edition are highlighted in GREEN
your review. throughout this document to
facilitate
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate
and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on
such information without appropriate professional advice after a thorough examination of the particular situation.
The Government of Quebec, the Government of Canada, municipalities and several departments and agencies have taken important steps to assist families,
employees and businesses whose cash flow is affected by the impact of COVID-19.
New measures, new programs and additional details since the last update:
Government of Quebec
- Cultural Recovery Plan
- Support for Montreal businesses
- Emergency Commercial Rent Assistance
- Flexibility regarding filing and payment deadlines
Government of Canada
- New flexible measures for the CEWS
- Wage supports to universities and health research institutes
- Flexibility regarding filing and payment deadlines
- Emergency Processing Fund (EPF) *** TIME SENSITIVE ***
Bill C-17 among other things, enacts the Time Limits and Other Periods Act (COVID-19), amends the Tax Act to revise the eligibility criteria for the CEWS
and amends the CERB Act. This bill was presented and received first reading on June 10th, 2020 and is expected to be debated this week. As a result we are
expecting clarifications of the following:
- Extension of the Canada Emergency Wage Subsidy (CEWS) and related specifications
- Extension of the Canada Emergency Response Benefit (CERB) and related specifications
This page is
current as of
June 16th 2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
—3—Version 9: June 16th 2020
Timeline - Development of Important Governmental Measures
March 19th
BDC programs
May 11th
March 19th April 6th Canada Enterprise Emergency
Quebec government’s PACME is Funding Corporation (CEEFC),
PACTE ($2.5B) & fiscal announced and the EDC BDC loan guarantee
carryovers ($8.3B) (100M$) middle market program announced
March 18th March 27th
January 25th April 11th May 15th May 25th
Canada’s COVID-19 Wage Subsidy
First COVID-19 Economic Response announced Wage Subsidy 12-week Launch of
case in Canada Plan ($27B) & fiscal ($73B) and ENACTED extension of the CECRA
carryovers ($55B) EDC’s BCAP through bill C-14 the CEWS portal
January 25th Today
March 12th March 24th April 3rd April 16th May 15th June 8th
KPMG Non-essential Quebec FLI Canada Enhancement CECRA
employees services ($150M) Emergency of PACME (+ enhancement
work from closures Commercial Rent $50M)
home Assistance
(CECRA) for May 27th
March 25th Closure of
small businesses
CERB announced announced the “volet
and bill C-13 Entreprise”
ENACTED of PACME
This page is
current as of
June 8th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
—4—Version 9: June 16th 2020
Overview – Government Initiatives
The governmental programs listed below are available to businesses whose cash flow is affected by the impact of COVID-19
GOUVERNMENT OF QUEBEC GOVERNMENT OF CANADA
Click on the program for FADQ – Loan RRRF RRRF
more details PACTE PACTE – SMB PACME
guarantee Profile 1 Profile 2
Clients: Investissement
Québec (IQ)
Emploi Québec Fédération agricole du For Quebec enterprises: Canada Economic Development for Quebec Regions (CED)
Who to contact? Quebec Portal or RCM
(MTESS) Québec (FADQ) Elsewhere in Canada: refer to your respective Regional Development Agency (RDA)
Non-clients: Financial
institution
Type of financial Interest bearing loan or Repayable or non-repayable loan,
Interest bearing loan Grant Loan guarantee Repayable loan
assistance loan guarantee depending on the type of business3
- 100% of expenses of
$100K or less
Authorized amount Over $50K Less than $50K
- 50% of expenses in
Up to $50K Financing of more than $40K Financing of less than $40K
excess of $100K
Case by case, Case by case,
Case by case,
established by the established by the Max $300K per
Conditions financial institution and financial institution and enterprise
established by the Case by case Case by case
FADQ
IQ IQ
Projects will be
Case by case, Case by case, If 75% of the contribution is repaid by
accepted until Ten-year repayment Repayable over a five-year period (based
established by the established by the December 31, 2022 (based on a pre-
Deadline/period financial institution and financial institution and
September 30, 2020 or term and 12-month on a pre-determined repayment
determined repayment schedule), the
until the $150 million capital payment relief schedule), starting January 1, 2023
IQ IQ remaining 25% becomes non-repayable
budget is allocated
Businesses with revenues of $250K and Businesses with revenues less than
Agricultural and agri-
Type of business All1 SMB and NPO All more operating in the manufacturing and $250K operating in the manufacturing and
food businesses
value-added services industries2 value-added services industries2
$211 million budget for Quebec regions
Notes $150 million budget $150 million budget
$962 million total budget
1 Refer to the respective section of the document for sectors of activities that are not eligible to the program.
This page is 2 Refer
3
to the CED website to see all businesses eligible to this profile.
In the case of NPOs (non-profit projects), the contribution is non-repayable
current as of
May 26th 2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
—5—Version 9: June 16th 2020
Overview – Government Initiatives (continued)
The governmental programs listed below are available to businesses whose cash flow is affected by the impact of COVID-19
GOVERNEMENT OF CANADA
Canada Large Employer
Click on the BDC – Lending EDC – Loan EDC – CECRA for
BDC – Lending EDC – Loan BDC – Working BDC Capital – Emergency Temporary wage Emergency
program for program (Middle guarantee Emergency small
more details program (SME) guarantee (SME) Capital Loan Bridge Program Wage Subsidy subsidy Financing
market) (Middle market) account (CEBA) businesses
(CEWS) Facility (LEEFF)
Canada Canada
Canada Revenue
Mortgage and Development
Who to Financial Financial Financial Financial Financial Agency (CRA) via No application is
BDC BDC Capital Housing Investment
contact? institution institution institution institution institution My Business required
Corporation Corporation
Account portal
(CECRA) (CDEV)
Type of
Interest bearing Interest bearing Interest bearing Interest bearing
financial loan loan
Loan guarantee Loan guarantee Interest free loan
loan
Convertible notes Grant Grant Forgivable loan
loan
assistance
Equivalent to 10% of the
75% of the
Up to $6.25M those committed remuneration Up to 50% of the
Between 80% on a 75% on a amount remuneration
Authorized (80% BDC and by existing paid; maximum of monthly gross
$12.5M$ and maximum amount between $16.75M Up to $40K Up to $2M paid; maximum of $60M and more
amount 20% financial vendors or new $1,375/eligible rent (of no more
$60M of $6.25M and $80M $847 a week/per
institution)1 qualified employee & max. than $50K)
employee
investors $25K/employer
Case by case, Case by case, Case by case, Case by case, Unsecured loan
Reduction of the
established by established by established by established by Base rate (BDC) Considered as Considered as facility (80%) and
Conditions the financial the financial the financial the financial
Interest free Base rate (BDC)
+ 4% taxable income taxable income
gross rent by at
secured loan
least 75%
institution2 institution2 institution institution facility (20%)
25% Loan - Unsecured
Case by case, Case by case, Case by case, Case by case, 36 months
forgiveness (up to From March 15, Available from For the months of facility: 5 years
Deadline/ established by established by established by established by including the 12
$10K) if repaid by 36 months 2020 until August March to June April, May and - Secured
period the financial the financial the financial the financial month capital
December 31, 29, 2020 19, 2020 June 2020 facility: case by
institution institution institution institution extension
2022 case
Type of Canadian start- All except public Large Canadian
All All All All SME and NPO All SME ISBT4
business ups bodies enterprises5
Criteria:
- Total payroll - Qualifying - Reduce - Revenue decline For enterprises
In general, for - Raised
For business with paid in 2019 is revenue withholding tax of at least 70% that can generally
businesses with >500K$ in
more than $100M between $20K decrease3 remittance (tenant)3 demonstrate
Notes $20 billion budget
in annual
$20 billion budget annual revenues
and $1.5M
external capital
- Retroactive - No specific - Gross annual approximately
between $50M - Backed by
revenues - $25 billion application eligibility revenues (tenant) $300M or more in
and $300M qualified VC
budget possible criteria < 20M$ annual revenues
firm
1 Refer to BDC section of the document for the three components of the program to support business of different sizes.
2 Loans would only accrue interest for the first 12 months, with a 10-year repayment period.
This page is 3 Refer to the respective section of the document for more information on qualifying revenue decrease.
current as of 4 ISBT = impacted small business tenants.
5 Except for those in the financial sector.
May 26th 2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
—6—Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Quebec
Support for Businesses
Categories Announced measures Additional details
● This funding program is targeted at companies whose cash All industries are eligible, except for the following:
flow is affected by the impact of COVID-19 and needing a
● Weapons manufacturing or distribution
minimum funding of $50,000.
● Games of chance and gambling, combat sports, racing and other
● This financial assistance is available to businesses operating similar activities
in Québec, including cooperatives and other social economy ● Production and sale of tobacco and drugs along with services
enterprises with commercial activities. Eligible businesses are related to their use, except for projects involving pharmaceutical-
those that find themselves in a precarious situation and grade products approved by Health Canada and having a DIN, or
temporary difficulty as a result of COVID-19. They must show their ingredients, as well as R&D projects licensed by Health
that their financial structure offers realistic prospects for Canada
profitability. ● Any activity whose main purpose is protected by the Canadian
Charter of Rights and Freedoms (religion, politics, human rights
Concerted Eligible Projects: advocacy, etc.)
temporary action Businesses must show that their cash flow issues are temporary and ● Any other activity that may offend public morals.
program for that the liquidity shortage stems from:
businesses ● A problem involving the supply of raw materials or products Investissement Québec aims to work in close cooperation with financial
(PACTE) (goods or services) institutions and federal authorities (BDC/EDC) in order to share risks
● An inability, or a substantially decreased ability, to deliver ● The minimum funding amount is $50,000;
goods, products or services. ● Refinancing is prohibited;
(included in the
● This measure is designed to shore up the business’s working
ESSOR Applications will be reviewed on a case-by-case basis, according to capital.
program) the business’ circumstances and Investissement Québec’s
management practices.
How it works:
Funding details: Existing IQ clients: contact the account manager by email or telephone.
● A loan guarantee is the preferred form of financing. Financing
can also take the form of a loan from Investissement Québec. Non-client businesses: to obtain a loan guarantee, contact the financial
institution, which will then be able to contact one of the IQ account
● Businesses in all industries are eligible to this program, managers.
certain exceptions apply (see next column).
This page is
current as of
April 17th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
—7—Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
Support for Businesses
Categories Announced measures Additional details
The Emergency Assistance Program for Small and Medium-Sized To qualify, the business must:
Businesses aims to support, for a limited period, eligible businesses
who are experiencing financial difficulties due to COVID-19 and who ● have been in operation in Quebec for at least one year;
need up to $ 50,000. ● be temporarily closed, be likely to close or showing signs of closing;
● be in a context of maintaining, consolidating or reviving its activities;
● This is in addition to the Concerted temporary action program ● have demonstrated a causal link between its financial or operational
for businesses (PACTE). problems and the COVID-19 pandemic.
● To help businesses, the he Government of Quebec is making Excluded are applicants who are subject to the protection of the
Emergency available an initial amount of $150 million to the RCMs and Companies’ Creditors Arrangement Act (RSC, 1985, Chapter 36) or the
assistance for territories. The cities of Montreal and Quebec will each receive Bankruptcy and Insolvency Act (CRL, 1985, Chapter B-3).
small and $40 million and $10 million respectively, of the allocated $150
medium-sized million. The other RCMs and equivalent territories will share the To apply:
businesses remaining $100 million.
● For information about the Emergency Assistance Program for Small
● An additional $100 million has been added to the program’s and Medium-Sized Businesses, contact your RCM, your
budget on June 9, 2020 (including $20 million intended for municipality’s office or the organization responsible for managing the
Montreal small businesses – see related section). Fonds local d'investissement (FLI) in your RCM.
● Assistance will be provided as a loan or loan guarantee of up to ● Details of the measures are set out on the government website.
$50,000 to address the liquidity shortfall due to COVID-19.
This page is
current as of
May 20th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
—8—Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
Support for Businesses
Categories Announced measures Additional details
Temporary exemption for companies modifying their production in an ● In order to benefit from this exemption, the business will have to
effort to combat COVID-19 notify the Ministère de l’Environnement et de la Lutte contre les
changements climatiques, as indicated on its website. The
● Program aiming to streamline procedures for companies
exemption will be valid upon receipt of the Ministère’s response,
wishing to convert their operations in an effort to combat
which will be sent within 48 hours of receiving the required
COVID-19.
information.
● In order to meet an increasing and urgent demand,
● For more information on the measure, consult the following
particularly in the health and social services sector, the
government website:
Government of Quebec will exempt businesses that
http://www.environnement.gouv.qc.ca/autorisations/exemption/
temporarily modify an operation (for example, increasing
production) or add an operation (for example, designing new
products) in connection with the fight against COVID-19. As a
result, these companies will not need to obtain prior
authorization from the Ministère de l’Environnement et de la
Lutte contre les changements climatiques, which will alleviate
the procedures for temporarily converting their operations.
This page is
current as of
April 17th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
—9—Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
Support for Businesses
Categories Announced measures Additional details
● Loan flexibility measures already provided by Investissement Québec can be ● This is not an automatic measure. A request
implemented. must therefore be made specifically to benefit
from the flexibility measures.
Outstanding loans and ● Local investment funds (Fonds locaux d’investissement, or “FLI”): a three (3) ● Interest earned during this period will be
guarantees month moratorium was introduced for the repayment (principal and interest) of added to the loan balance. This is in addition
loans already granted. to the moratorium already in place under
most of the investment policies in force in the
● Two-year extension of the FLI, i.e. until December 31, 2022. RCMs, which can reach twelve months.
● Several municipalities have announced measures such as: deferral of payment ● For more information, visit the respective
Municipal World: local of property taxes, deferral of payment of property transfer fees, grants, loans, municipal websites.
measures etc.
CNESST is implementing exceptional flexibility measures for businesses. More ● Frequently visit the CNESST website or
specifically: subscribe to the organization’s press releases
● Employers have until August 31, 2020 to pay their Statement of Account via the following website:
related to the CNESST contribution. In addition, no penalty or interest will be
charged during this period. ● Québec.ca > Information feed
● The deadline for submitting the 2019 statement of wages is extended.
Employers have until June 1, 2020 to submit it. ● Québec.ca > Information feed > Mesures
● There will be tolerance in the application of time limits for the filing of d'assouplissement de la CNESST pour les
complaints, for example for the transmission of documents necessary for an employeurs et les travailleurs dans le
investigation. contexte de la COVID-19
This page is
current as of
April 17th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 10 —Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
Support for Businesses
Categories Announced measures Additional details
FINANCING MEASURE ● Frequently visit the FADQ’s website or subscribe to their press
The FADQ is implementing measures for businesses in the agriculture releases here:
and agri-food sector, including:
● A 6-month moratorium on loan repayment is available to all FADQ ● Québec.ca > Information feed
clients who apply for it. This period of payment holiday will reduce
Financière corporate obligations and provide liquidity for the coming months. ● Québec.ca > Information feed > La Financière agricole du
agricole du Québec met en place de nouvelles mesures pour
Québec (FADQ) ● A loan guarantee of up to $50,000, free of personal property or real accompagner les producteurs agricoles
estate property guarantee, may be granted by the FADQ in order to
support cash flow needs. This measure is available to any FADQ ● https://www.fadq.qc.ca/en/news-room/news/details/2020-
financing client with temporary cash flow issues due to the COVID- growing-season-la-financiere-agricole-ensures-fruit-and-
19 pandemic. vegetable-producers-that-it-will-adjus-1/
This page is
current as of
May 20th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 11 —Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
Support for Businesses
Categories Announced measures Additional details
Insurance and Income Protection Measures ● Frequently visit the FADQ’s website or subscribe to their press
releases here.
Crop Insurance Program (ASREC)
● The enrolment date is extended from April 30 to May 21, 2020.
● Notices of assessment are deferred from June 1 to July 1, 2020.
● For market garden crops, seeding cut-off dates are deferred.
AgriStability
● The deadline to apply and make a contribution payments is postponed
to July 3, 2020. This program covers margin drops due to a major loss
of income or increase in production expenses. Given the current
circumstances, the period to enroll is postponed from April 30 to July
3, 2020. The payment of contributions to the program is also
Financière postponed to July 3, 2020.
agricole du
Québec (FADQ) ● Interim payments increase from 50% to 75% of program benefits. With
interim payments, farmers can receive a portion of their program
benefits faster. To apply, producers must contact the Financial
Information Collection and Processing Team.
Farm Income Stabilization Insurance Program (ASRA)
● No notice of assessment will be sent before July 1.
● Final payments for the 2019 insurance year will be made in April for
the cattle and hog sectors and in May for the sheep sector, as
scheduled.
● The second advance for cereal and canola compensations will be paid
in April.
This page is
current as of
May 20th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 12 —Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
The “volet Entreprises” of PACME has reached its maximum financial capacity. It is
therefore no longer possible to apply for this component of the program.
Support for Businesses
Categories Announced measures Additional details How to benefit
The program offers direct financial Eligible expenses include:
support to promote training and ● reimbursement of wages (excluding payroll taxes, maximum allowable ● The program is effective
for the implementation of good salary of $25 per hour), up to: starting April 6, 2020 and
practices in human resource o 25% of the payroll of workers during eligible training, if the company will expire on September
management, as well as the receives Canada’s emergency wage subsidy of 75%; 30, 2020, or until the $150
optimization of the operation of o 90% of the payroll of workers during eligible training, if the company million budget is exhausted.
businesses and the labor market. receives Canada’s temporary wage subsidy of 10%;
o 100% of workers’ wages during eligible training, if the company does ● Businesses and self-
Eligible businesses have to had not receive any federal wage subsidy. employed persons must
their usual activities suspended, apply by contacting their
reduced, increased or diversified ● reimbursement of up to 100% of eligible training expenses, related local employment center.
Concerted as a result of the COVID-19 costs and costs related to human resources management activities,
Action pandemic. according to the applicable scales (e.g. professional fees). ● For more information on
Program for this new program, please
Maintaining ● The program provides a Eligible training activities include: visit the Government’s
Employment 100% reimbursement for o Basic employee training website.
(PACME- eligible expenses incurred, o Francization
COVID-19) for example, professional o Digital skills training
trainer fees, equipment o Continuing education related to the business’ activities (whether or not
purchase, and human directly related to the trained employee’s position)
resources management o Training recommended by a professional association
activities. o Training necessary to resume business activities
o Training related to a strategic adjustment or modification of the
● The PACME reimburses business’ activities to maintain or diversify the activities in light of the
100% of eligible economic uncertainty due to COVID-19 (e.g. health, telecommuting)
expenditures of $100,000 o Training for the requalification of workers.
and less and 50% of
expenses between $100,000
and $500,000.
This page is
current as of
May 15th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 13 —Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
Support for Businesses
Categories Announced measures Additional details How to benefit
The amount of the credit for Reduction of periodic payments of the contribution to the HSF ● The application for the credit
contributions to the HSF will be An employer may reduce the periodic payments of the contribution to the on employers contribution to
equal to the amount of HSF that it is required to remit to Revenue Quebec after April 30, 2020, by the HSF must be submitted
contribution to the HSF paid by the amount of the credit for contributions to the HSF attributable to the to Revenue Quebec when
an employer with respect to the salary or wages paid to an employee on paid leave before the periodic
the employer submits the
wages paid to an employee on payment deadline and that has not reduced another periodic payment.
Summary of Source
paid leave during a week
included in the period beginning Deductions and Employer
on March 15, 2020 and ending on Contributions for 2020 (RLZ-
June 6, 2020. Reduction of the contribution to the HSF for the creation of 1.S-V and RLZ-1.ST-V)
specialized jobs
This measure is in effect Where an employer could benefit, for the year 2020, from the credit on ● The application must be
retroactive to March 15, 2020. employers contribution to the HSF and the reduction in the contribution to accompanied by documents
Credit for
contributions the HSF for the creation of specialized jobs, the qualified wage for the and information that will
An employer who may benefit
to the Health purpose of the reduction to the contribution to the HSF for the creation of enable Revenue Quebec to
from the CEWS and maintains an
Services specialized jobs must be reduced by an amount equal to the specified establish the amount of the
establishment in Quebec may
Fund (HSF) benefit from the credit for wage paid to such an employee. credit on employers
contributions to the HSF. contribution to the HSF to
which the employer is
entitled.
● For more information on
this new program, please
visit the Government’s site
and the Information bulletin
2020-07 .
This page is
current as of
May1st,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 14 —Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
Support for businesses, workers, and families
Organizations Announced measures
● There will be no power cut off to anyone for non-payment.
● There will be no planned service interruptions for system maintenance, with the exception of those that are absolutely
necessary.
● Since Monday, March 23, Hydro Québec stopped applying administration charges for unpaid bills until further notice for all
customers. Customers unable to pay their electricity bills over the coming months will thus not be penalized. They can enter
into a payment arrangement with Hydro Québec to defer payment.
Deferral of payment of amounts due to retain the right of movement for commercial vehicles and taxis.
● The Government of Quebec and the Société de l'assurance automobile du Québec announced that the payment of amounts
due to maintain the right of movement for commercial vehicles and taxis is deferred to September 1st, 2020. The 5-month
deferral will allow businesses to retain nearly $165 million in cash.
● Companies wishing to benefit from this deferral should:
● Contact their financial institution to request a stop to the pre-authorized debits or to request the cancelation of their
payment cheque issued in the name of the Company;
● If the above action is not possible or for any other reason, go to https://saaq.gouv.qc.ca/services-en-
ligne/entreprises/formulaire-de-report-de-limmatriculation-commerciale/ and complete the commercial registration
deferral form;
● Send the form to sae.report.entreprise@saaq.gouv.qc.ca to facilitate and speed up the processing of each request,
in order to answer questions and ensure that the approach is personalized for this particular transaction.
This page is
current as of
April 17th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 15 —Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
Support for businesses, workers, and families
Organizations Announced measures
Workers in the fields
The government provided an investment of $ 45 million to attract Quebec workers to the fields. Farmers will thus be able to benefit
from an essential helping hand for the planting and harvesting period. This investment will notably finance four measures which aim
to ensure a regular supply of foodstuffs to the population in the context of the current pandemic:
● A bonus of $ 100 to seasonal agricultural workers for a minimum work of 25 hours per week;
● The creation of a new program for the displacement of the workforce which takes into account the rules of social distancing in
force;
● The establishment of squads on the ground which will intervene at the time of the integration of new workers (minimum of five
employees to integrate) to support agricultural producers in the training of new workers;
● Financial support granted to the 12 agricultural employment centers, to meet the needs of twinning agricultural businesses with
new workers.
Inspectors and other services
● Despite the COVID-19 crisis, the Department's inspectors continue to accompany operators to ensure food safety and animal
health and well-being. They also educate operators on public health measures to be followed in relation to COVID-19 for food
preparation and processing.
● However, some services offered by the Department may be affected, such as licensing. In these circumstances, no negative
consequences will be attributed to the Department's clients in this regard.
Fishing businesses
Quebec announced a measure of $450,000 to help fishing businesses and ensure the well-being of fish farms. (For more details see
the government website).
● As of March 18, 2020, no annual fee payment notification has been issued to licensees. As a result, no penalties will be
imposed on concerned licensees, and no licenses will be canceled. Similarly, any expiring license, license or authorization will
be renewed automatically or will remain in effect.
This page is
current as of
May 20th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 16 —Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
Support for businesses
Categories Announced measures
NEW MEASURE
The Québec government has just increased its initial investment of $110 million in emergency assistance measures by $289 million to
boost the cultural sectors, totaling nearly $400 million for culture.
With this plan, the government is allocating a significant amount of money to support the various players in the cultural sector, including
theatre, film, television, books, circus, dance, music, performing arts, festivals and events, and fine crafts, among others. The plan's
objectives include:
• Support film and television production ($91.5 million);
Cultural Recovery Plan • Support businesses and cultural organizations in resuming their activities ($71.9 million);
• Support innovation and creation in the performing arts (theatre, dance, circus, music, etc.) ($50.9 million);
• Enhance the funding for the music sector to carry out innovative projects ($33.5 million);
• Provide the cultural community with the means to achieve its digital ambitions ($14 million);
• Promote Quebec culture and large-scale projects ($13 M);
• Supporting artists and writers in their creation ($6.5 million);
• Enhance existing financial assistance to revive artistic and cultural festivals and events ($5.9 M); and
• Documenting the effects of the pandemic on the cultural community and supporting smaller real estate and equipment acquisition
projects ($2.2 million).
NEW MEASURE
Injection of $50 million in new funding to support small businesses in Montréal. The funds will be administered by PME Montréal (PME
MTL), the City of Montréal's business support network.
The Government of Canada, through CED, plans to provide up to $30 million to the PME MTL network through the Regional Relief and
Support for Montreal Recovery Fund (RRRF). This assistance is intended for Montreal businesses that are not eligible for other federal measures already in
Businesses place related to COVID-19. In addition, the Québec government is increasing by $20 million the funding set aside for the City of Montréal
under the Emergency Assistance for Small and Medium-Sized Businesses program. A sum of $40 million has already been granted to
the City of Montréal through this program.
This page is
current as of
June 8th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 17 —Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
Support for workers and families
Categories Announced measures Additional details How to benefit
● The Program will provide a benefit of ● Eligible workers will receive a monthly taxable ● Applications will be made through a
$100 per week for low-income lump sum of $400 up to $1,600 for a 16 week Revenue Québec online form that will be
employees working full-time or part- period. available as of May 19, and the incentive
Incentive time in essential service sectors. will be paid by direct deposit starting May
● To be eligible, the applicant must:
Program to 27.
Retain
● The benefit will be paid retroactively to o Work in a sector declared essential
March 15 for a maximum of 16 weeks. during the covered period
Essential o earn a gross salary of $550 a week
Workers or less;
(IPREW) o have an annual employment income
of at least $5,000 and a total annual
income of $28,600 or less,
calculated before the benefit.
This page is
current as of
April 17th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 18 —Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
Support for businesses, workers and families
Flexibility for income tax filings and payments
Administrative application
● No action is required. The application of new production and payment deadlines and new administrative practices is automatic.
● Where the individual, trust or business expects to receive a tax or an input tax refund, KPMG recommends that the relevant tax return be filed as soon as
possible.
● In addition, tax verification and collection activities will be temporarily suspended. Revenu Québec also indicated that itwould be flexible with respect to
payment agreements.
Individuals
The deadline for filing the 2019 income tax return (TP1) and payment of tax is harmonized with the federal government (i.e. the filing is deferred to June 1st, 2020
(June 15th if in business) and the payment is deferred to September 1st, 2020).
Payment of QPP, QPIP, HSF and RAMQ contributions are also deferred to September 1st, 2020.
Revenu Quebec has clarified that no late-filing penalty will be charged to individuals if their TP1 return is filed by September 1, 2020.
This page is
current as of
May 25th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 19 —Version 9 to: June 9th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
Support for businesses, workers and families
Flexibility for income tax filings and payments for corporations
Obligation Filing deadline Payment deadline
Extended to:
June 1, 2020, for returns that would
Extended to September 1, 2020, for
normally be filed in the period from
balance payments that would normally
Corporation income tax return March 17 to May 31, 2020
be made in the period from March 17
September 1, 2020, for returns that to August 31, 2020
would normally be filed in the period
from June 1 to August 31, 2020
Extended to September 1, 2020, for
payments that would normally be
Corporation instalment payments N/A
made in the period from March 17 to
August 31, 2020
This relief would apply to Part 1 tax balances and provincial instalments payable.
No interest or penalty will apply to payment of corporate tax balances and provincial instalments that become due on or after March 17, 2020 and before September
2020 if payments are made by the extended deadline.
Clarification is expected for the deadlines and terms of payments of the deferred amounts.
This page is
current as of
May 25th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 20 —Version 9 to: June 9th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
Support for businesses, workers and families
Flexibility for trusts and partnerships
Filing deadline Payment deadline
Extended to May 1, 2020, for
returns that would normally be filed Extended to September 1, 2020, for payments related to
for the 2019 taxation year by the income tax return filed for the 2019 taxation year
March 30, 2020
Extended to June 1, 2020, for Extended to September 1, 2020, for payments that would
Trust income tax
returns that would normally be filed normally be made in the period from March 17 to
or information
between March 31 and May 31, August 31, 2020 and that are related to the income tax
return
2020 return filed for the 2019 taxation year
Extended to September 1, 2020, Extended to September 1, 2020, for tax balance payable
for returns that would normally be for taxation year ended during the 2020 calendar year,
filed between June 1 and August which would otherwise be payable before September 1,
31, 2020 2020.
Trust instalment Extended to September 1, 2020 for the June 15, 2020,
N/A
payments instalment
Extended to:
May 1, 2020, for returns that would
normally be filed in the period from
Partnership March 17 to April 30, 2020
N/A
information return
September 1, 2020, for returns
that would normally be filed in the
period from May 31 to August 31,
2020
This page is
current as of
May 25th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 21 —Version 9 to: June 9th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
Support for businesses, workers and families
Flexibility for income tax filings and payments for GST/HST, QST and other taxes
Obligation Filing deadline Payment deadline
The usual deadlines apply.
However, you will not be charged a Extended to June 30, 2020, for net tax
late-filing penalty for a return that payments that would normally be made
GST/HST and QST return
should have been filed in the period in the period from March 27 to
from March 27 to June 1, 2020, June 1, 2020
provided the return is filed no later
than June 30, 2020.
Extended to June 30, 2020, for
instalments that would normally be
GST/HST and QST instalments N/A
made in the period from March 27 to
June 1, 2020
Return respecting the tax on Extended to July 31, 2020, for the Extended to July 31, 2020, for the first
lodging first calendar quarter of 2020 calendar quarter of 2020
Other taxes:
• Tax on alcoholic beverages
• Tax on insurance premiums
• Specific duty on new tires The usual deadlines apply. The usual deadlines apply.
• Municipal tax for 9-1-1 service
• Fuel tax
• Tobacco tax
This page is
current as of
May 25th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 22 —Version 9 to: June 9th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
Support for businesses, workers and families
Flexibility for other tax information returns and source deductions
Payment
Filing deadline
deadline
Extended to:
June 1, 2020, for returns that would normally be filed in the
Information and income tax return
period from March 17 to May 31, 2020 N/A
for non-profit corporations
September 1, 2020, for returns that would normally be filed in
the period from June 1 to August 31, 2020
Information return for registered Extended to December 31, 2020, for returns that would normally
N/A
charities and other donees be filed in the period from March 17 to December 30, 2020
Source deductions and employer contributions
Obligation Filing deadline Payment deadline
Payment of source deductions and
The usual deadlines apply. The usual deadlines apply.
employer contributions
This page is
current as of
May 25th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 23 —Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
Revival
Categories Announced measures Additional details
Support for innovation projects ● To take advantage of this measure, the business must
demonstrate that the innovation project meets the criteria
● Program to support businesses and business combinations at the
established by the ministry.
various stages of an innovation project to help build their capacity
for innovation. ● For ongoing financial assistance requests, the financial
assistance rates and accrual rates are determined by the
● Eligible projects are innovation projects of product or process, from
program.
the planning stage to the pre-marketing stage (technological
showcase). ● The details of the complete measure are found at :
https://www.economie.gouv.qc.ca/bibliotheques/programmes/
● For each of the projects, the financial assistance granted to
aide-financiere/programme-innovation/soutien-aux-projets-
applicants takes the form of a non-refundable contribution.
dinnovation/
This page is
current as of
April 17th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 24 —Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Quebec (continued)
Sectoral Support
Sector Link
The Quebec government has put in place measures to help the tourism industry. These measures can be viewed via the hypertext links below:
● Support Program for tourism development stategies: https://www.quebec.ca/tourisme-et-loisirs/aide-financiere/projets-infrastructures-touristiques/
● Assistance for festivals and tourism activities: https://www.quebec.ca/tourisme-et-loisirs/aide-financiere/tenue-festivals-evenements/
Tourism
● Flexible mesures regarding annual fees for holders of classification certifications: https://citq.qc.ca/fr/index.php
● Extension of the deadline for reporting and remitting the tax on loging: http://www.finances.gouv.qc.ca/documents/Bulletins/en/BULEN_2020-6-a-
b.pdf
The Program aims to support carriers so that they can provide essential air services in remote and isolated regions of Quebec during the COVID-19
health emergency.
Air services ● Programme d’aide pour le maintien des services aériens régionaux essentiels en période d’urgence sanitaire (COVID-19):
https://www.quebec.ca/transports/aide-maintien-services-aeriens-covid19/
This page is
current as of
May 20th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 25 —Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Canada
Support for Businesses
Categories Announced measures Additional details
Small and Medium-sized Enterprise Loan and Guarantee program
● The Development Bank of Canada (BDC), Canada’s bank for entrepreneurs,
and Export Development Canada (EDC), Canada’s export credit agency, have
launched the new Small and Medium-sized Enterprise Loan and Guarantee ● The program will help Canadian financial institutions
program, which will make available up to $40 billion in additional lending. provide credit and liquidity options that various
businesses need immediately, funded by BDC and
● The new Small and Medium-sized Enterprise Loan and Guarantee program EDC.
will operate as follows:
● To access these loans, entrepreneurs must contact
o $20G: Small and medium-sized businesses can get support through a new their main financial institution, which will assess their
co-lending program that will bring together the BDC and financial situation and provide funding accordingly.
institutions to co-lend term loans to these businesses for their operational
cash flow requirements. Eligible businesses may obtain additional credit:
80% of which would be provided by BDC, with the remaining 20% by their • Eligible companies could obtain up to $12.5 million
Loan programs financial institution. The program is designed in three segments to target through these two loan options.
for businesses - support to different business sizes: Loans of (1) up to $312,500 to
SME businesses with revenues of less than $1 million; (2) up to $3.125 million
for businesses with revenues between $1 million and $50 million, and (3)
up to $6.25 million for businesses with revenues in excess of $50 million.
Loans would be interest bearing for the first 12 months only, with a 10-year Source :
repayment period.
www.canada.ca/en/department-
o $20G: EDC will also provide funding to financial institutions so that they finance/news/2020/03/additional-support-for-canadian-
can issue new operating credit and cash flow term loans of up to $6.25 businesses-from-the-economic-impact-of-covid-19.html
million to small and medium-sized businesses, as a result of a new national
mandate enhancing EDC’s role in supporting Canadian businesses https://www.canada.ca/en/department-
through the COVID-19 crisis. These loans will be 80% guaranteed by EDC, finance/programs/financial-sector-policy/business-credit-
to be repaid within one year. availability-program.html
This page is
current as of
April 17th,2020
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Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 26 —Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Canada
Support for Businesses
Categories Announced measures Additional details
1) BDC Mid-Market Financing Program
● The Mid-Market Guarantee and Financing Program will provide commercial ● More details will be provided shortly.
loans ranging from $12.5 million to $60 million to medium-sized businesses that
are particularly affected by the COVID-19 pandemic and whose credit needs
exceed what is already available under the Business Credit Availability Program
and other measures.
● Loans will be granted by the Business Development Bank of Canada (BDC), in
close collaboration with its major lenders, to cover operational liquidity needs
and support business continuity.
● The BDC expects that the program will apply to businesses with annual
revenues of more than $100 million.
Loan programs ● More details will be provided shortly.
for businesses –
2) EDC Mid-Market Guarantee and Financing Program
Middle Market
● The expanded program brings liquidity to companies who tend to have revenues
of between $50 million to $300 million, to sustain operations during this
emergency moment.
● EDC will continue to work with Canadian financial institutions to guarantee 75%
of new operating credit and cash-flow loans – ranging in size from $16.75 million
to a maximum of $80 million.
● Protection is available to exporters, international investors and businesses
operating only in the Canadian market.
● More details will be provided shortly.
This page is
current as of
May 20th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 27 —Version 9: June 16th 2020
Government initiatives regarding COVID-19
Government of Canada
Support for Businesses
Categories Announced measures Additional details
The LEEFF is a program created by the Government of Canada to provide short-
term liquidity to major Canadian employers affected by the COVID-19 outbreak in
the form of interest-free term loans. The purpose of the LEEFF is to provide interim How to apply
funding to major Canadian employers to help them retain their staff and maintain ● As of May 20, 2020, applicants are invited to express
their operations and investments until they have access to more traditional financing their interest at LEEFF-CUGE@cdev.gc.ca.
in the marketplace.
● Certain restrictions apply, in particular with regard to
Who is eligible? the payment of dividends for the relevant applicants.
● The LEEFF is available to large Canadian employers, including public ● For details of the credit terms and conditions, see the
companies, who (a) have a significant impact on the Canadian economy, as Canada Development Investment Corporation (CDEV)
evidenced by (i) their significant operations in Canada, or (ii) their significant page.
workforce Canada; (b) have annual revenues generally in the order of $300
million or higher; (c) are seeking financing of about $60 or more.
Large Employer
Emergency ● Large for-profit companies in all sectors, except the financial sector, may apply
Financing for funding under the LEEFF. Some not-for-profit businesses, such as airports,
Facility (LEEFF) may also be eligible.
● Canada offers loans of $60 million and more, based on the applicant's cash
requirements for the next 12 months.
This page is
current as of
May 20th,2020
© 2020 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a
Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
— 28 —You can also read
