The complexity of the program of financial assistance to SMES explained that the City of Quebec has received so few applications up to now, according to traders.
Thursday, Régis Labeaume said he was “a little surprised” by the fact that only 200 applications had been filed for the loan of $ 10 million.
This money comes from the provincial government, but the program is administered by the municipality.
Even if the mayor of Quebec city has ensured that the application is easy to complete, some managers of SMES have tiqué by noting the paperwork to meet.
The obligation to provide financial statements signed by a chartered professional accountant and to submit the last two statements of the declaration of the GST and the QST has exasperated more than one.
“If it is your brother-in-law who does the accounting, or an experienced accountant, it is not enough for them. When we speak of a chartered accountant, that means investment on the part of contractors to do this”, regretted Jean-Pierre Bedard, a spokesperson for the seven TCS (business development Corporations) of Quebec.
According to him, the requirement to provide statements of GST and QST would add an extra layer of difficulty and could lead to the exclusion of traders.
“It is another element that penalises, he dropped. It has cooled several. But I admit that I can’t be totally against it, since it is public money that is handled”.
More raw, a trader of Quebec, who requested anonymity, spoke with the Journal a “very lousy. This funding is the slowest, the most expensive and the least effective that I was able to see”.
Half-serious, half-mocking, he added, “ask for $ 2 million to Investissement Québec, it is less complicated than that.”
The situation exasperates more than a federal assistance of $ 40,000 (at the rate of 0 % and with the possibility to convert 10 000 $ in grant) was a lot less complicated to touch.
“They were asking for very little papers. It took just four days for the money to be on the bank account”, he assured.
Replica of the City
Called to respond, the City of Québec has reiterated that the admission criteria are intended to meet the requirements of the government of Quebec, and that everything is done to “ensure a sound management of public funds”.
The notice of assessment (GST and QST) has in particular for purpose “to ensure that the business was indeed operational before the crisis. If the case presents some anomalies (e.g. : late payment), the City will research on the reasons of the anomalies and evaluate the file before making his decision,” it is said.