Two companies belonging in part to the giant Power Corporation are among the most important beneficiaries of an assistance program set up by the ministry of the Economy in response to the pandemic of sars coronavirus.
The firm’s lighting Lumenpulse, held 60.5 % of Power, has received a “financial contribution” of $ 10.2 million in the framework of the concerted action Programme temporary business (PACT), shows a table obtained by The Newspaper under the Act respecting access to documents held by public bodies.
“The funding received is used to support the working capital of the company “, said yesterday a spokesman of Lumenpulse, Andréanne Sirois-Carey.
The bus manufacturer electric Lion, in which Power holds a stake of 44.2 per cent, has been entitled to an assistance of $ 8 million PACT.
So far, the most important beneficiary of the programme is Group Selection, in which the president is Réal Bouclin, owner of dozens of residences for seniors, which received $ 35 million.
The aid has allowed Group Selection to quickly restart construction projects in Laval, Repentigny, Gatineau, Sherbrooke, and Lachenaie, said a spokeswoman Mylène Dupéré.
Réal Bouclin, president and CEO of the Selection Group, the largest beneficiary of the COVENANT up here.
Nearly 278 Million$ in total
Dated as of June 18, 326 quebec companies received almost $ 278 million $ in the framework of the PACT, which was launched on 19 march. Nearly 80 % of the interventions have taken the form of financial guarantees from government for loans made by banks. In other cases, these are loans provided directly from the ministry of Economy.
The main criterion for the selection of enterprises eligible to the programme is the existence of financial hardship as a result of the pandemic, recalled yesterday the minister of Economy, Pierre Fitzgibbon.
“We make abstraction of the shareholder, he told the Newspaper. We look at the company : [is it that] the company ABC has financial problems [related to] COVID ? “
Marc Bédard, president and CEO of Lion. This firm has obtained$ 8 Million of the COVENANT.
So far, the government has refused a hundred applications that do not meet the conditions of the COVENANT, revealed Mr. Fitzgibbon.
“If the problem is structural, we are not going to use the COVID to repair sore permanent “, he said.
The minister assured that in a general way, the companies beneficiaries of the programme were struggling to obtain funding.
“There are several companies in there that could not borrow, and others who had the pillows, if I can say, very low, he explained. It is precisely here that the government will intervene. “
The PACT is still far from its goal of $ 2.5 billion. By including agreements that have not yet been finalised, and the financial interventions totalled $ 1.4 billion currently, to the benefit of some 650 businesses, said Pierre Fitzgibbon.
They have benefited from the PACT
E. Gagnon and son, $24.5 million
This processing plant of lobster and crab in the Gaspé peninsula has entered into a financing agreement of $ 24.5 million in the framework of the COVENANT at the beginning of the pandemic. “It was an emergency measure in the case where we would have had to keep the stock. We had made a request prior to the season, but the crab has sold better than expected and we have not had need of any help in the end “, says George Sheehan, managing director of the company. The funds, however, remain available for the next few months.
Uni-Select, $34.5 million
Distributor of auto parts in Boucherville, had to use a COVENANT to renew its credit facilities on more favourable conditions. The contribution of Quebec is added to that of the federal Crown corporation EDC ($102 million). All in all, the refinancing amounted to $ 769 million $.
Pelican International, a $14 million
The manufacturer of boats in plastic from Laval, has received $ 14 million in the framework of the COVENANT. The crisis has hit the business so that its plants were operating at full capacity. “The timing couldn’t be more poorly chosen for this crisis-there. We were at maximum levels of inventories, accounts receivable and investment in our working capital, ” said in march to The Press by the president of Pelican, Danick Lavoie.
Rocky Mountain, $ 5.6 million
The designer bicycles of St-Georges, whose turnover reached $ 75 million, has been facing liquidity problems in march. “I’ve received e-mails from international clients who told me “we will pay you three months later” so, ” says the CEO of Rocky Mountain, Raymond Dutil. The bank loan guaranteed by the government, repayable over three years, should give him the time necessary to recover from the pandemic.
A few other beneficiaries
Doors and windows Atis ($6.3 million), Transportation C. A. T. ($5 million), LaSalle College ($4 million), shops Rossy ($3.5 million), Mini Mouse (840 000 $), Ricardo Media (700 000 $), Ski Beautiful Snow (400 000 $)