Sherbrooke clarifies small business support plan

Having received confirmation that the city is entitled to $ 1.8 million in assistance from the Government of Quebec, Sherbrooke has announced the terms and conditions for implementing its Emergency assistance program for small and medium-sized businesses. This program was put in place to promote access to capital to maintain, consolidate or revive the activities of companies affected by the COVID-19 pandemic.

As of April 22, companies are invited to submit their request on the Hub Entrepreneur platform (www.demarrersherbrooke.ca). The requests will be forwarded to the organization responsible for the targeted activity sector, which will then make a recommendation to the Investment Committee.

The analysis of requests will mainly focus on the eligibility of clientele and projects submitted, as well as the nature of the assistance requested. Any payment to the company will be made as soon as the investment committee comes to a decision.

To be considered eligible, businesses must be registered with the Registraire des entreprises du Québec (REQ) and have been operating in the city of Sherbrooke for at least one year. They should not be under the protection of the Creditors Arrangement Act or the Bankruptcy and Insolvency Act. They must have been generally in good financial condition from August 1, 2019 to March 1, 2020, be temporarily closed or likely to be closed, or show early warning signs of closure. Finally, companies requesting assistance must be in a context of maintaining, consolidating or reviving their activities and having demonstrated the cause and effect link between their financial or operational problems and the COVID-19 pandemic.

The program provides financial assistance in the form of a loan of up to $ 50,000, the interest rate having been set at 3%. A three month moratorium on principal and interest will apply on all loan contracts. An additional moratorium of up to 12 months on the capital may be granted. The city council has entrusted the management of the program to Pro-gestion Estrie .