COVID-19: AERAM now available to restaurants
Considering the additional restrictions that came into effect on December 26 and the consequences they could have on several restaurants, the Minister of the Economy and Innovation and Minister responsible for Regional Economic Development, Mr. Pierre Fitzgibbon, confirms that the restaurants will also be eligible for assistance to businesses in regions on maximum alert (AERAM). This aid is part of the Emergency Aid program for small and medium-sized enterprises (PAUPME) and the Temporary concerted action program for enterprises (PACTE).
Much like other businesses under a shutdown order, restaurants can get a loan forgiveness on fixed fees (see highlights) disbursed in December and subsequent months, as long as restrictions are in place. Subsequently, establishments benefiting from AERAM will be able to claim an additional loan forgiveness linked to reopening costs, which will apply according to the length of the restriction period imposed.
“The repercussions of the new sanitary measures on restaurants will be significant. We had discussions and discussions with their representatives, and it was clear that we had to adjust our programs or face several closures. We have said it and we repeat it: we will continue to adapt according to the evolution of the pandemic and the health measures. “, Explains M Fitzgibbon in a press release.
Let us recall that since then on December 26, a maximum of 6 people or members of two different addresses (which is equivalent to two bubbles) can meet in the restaurants. Since last week, the capacity in restaurants, as well as shops, theaters, churches, stadiums, bars has been reduced to 50%. In addition, restaurants and dining rooms are required to close from 10 p.m. to 5 a.m. the next day.
Consequences on turnover
The current sanitary measures have an impact on the turnover of restaurants.
During the holiday season, many establishments had to contend with waves of cancellations and group bookings following the announcement of sanitary measures. The holiday season can be a big win for restaurateurs and sometimes make up to 30% of annual profits at a minimum.
They just hope they don't have to completely shut down their establishments again, as some will fail to get up. Since the start of the pandemic, nearly 10,000 restaurants have permanently ceased serving customers across the country.
- AERAM is aimed at companies benefiting from the PAUPME or the PACTE. It allows establishments targeted by closure orders to obtain a loan forgiveness of up to $ 15,000 per month (maximum of 80% of the loan amount granted) in order to pay certain eligible fixed costs:
- < li> municipal and school taxes;
- interest paid on mortgage loans;
- costs related to public services (e.g .: electricity and gas);
- telecommunications costs;
- permits and association fees.