Vaudreuil-Dorion announces the creation of a fund to support the City’s businesses
The City of Vaudreuil-Dorion is pleased to announce its participation to an aid fund to support businesses on its territory. The Municipal Business Assistance Fund (Fonds d’aide municipale pour les entreprises - F.A.M.E.) has a financial envelope of $250,000. This fund demonstrates the City of Vaudreuil-Dorion’s desire to contribute directly to the economic development of its community and support merchants during the pandemic.
"The contribution of the fund is in the form of a loan, to which we are adding a non-refundable grant equivalent to 20% of the value of the loan, said Guy Pilon, Mayor of Vaudreuil-Dorion and President of DEV (Vaudreuil-Soulanges Local Development Centre). The City wanted to develop an additional tool that was complementary to what already existed without duplicating the supports already provided by the various levels of government."
This fund can be used to help businesses move towards digitization, support business development, facilitate innovation and operational improvements or simply optimize working capital. The financial assistance will also help in establishing new businesses linked to local priorities.
This initiative put forward by the Municipal Council arose from the decision made by the Quebec government to provide $800 million to municipalities to cover the additional costs and lost income resulting from COVID-19. These funds can also be used by municipalities to play an active role in reviving the economy.
Business Sectors Prioritized
The City of Vaudreuil-Dorion wishes to contribute more specifically to businesses in the following sectors: retail, restaurants and foodservice, local agricultural producers and agri-food processors, utility services and tourism-related services including lodging. "Our aim is to adapt to our economic fabric, adds Mayor Pilon, and contribute to the businesses that our citizens are in particular need of!"
Loans valued between $5,000 and $25,000 will be eligible for the non-refundable grant equivalent to 20% of the value of the loan. With no management fee, businesses will then have five years to repay the loan, with an interest rate set at 3%. A repayment moratorium will be available for the first six months of the loan to take into account the possible restarting of economic activities.
DEV to manage Fund and assist businesses
Management of this Fund will be entrusted to Développement (DEV) Vaudreuil-Soulanges, a decision that holds many advantages for the City of Vaudreuil-Dorion, including the analysis of files by an independent and objective third party. Also, thanks to the support provided by DEV, the F.A.M.E. fund will allow businesses to benefit from the specialized and personalized support of financial experts and business professionals. In fact, since the beginning of the pandemic, DEV has allocated more than $7 million through its various funds.
"Since the F.A.M.E. is a local program, its agility will allow us to consider any variables that can be adapted according to the situation of every business, says Joanne Brunet, Executive Director of DEV. For example, the analyses will be based on historical profitability before the pandemic, as well as the financial and human capacity to ensure that the business can remain sustainable in the context of the economic revival."
Interested businesses may submit their application for assistance for review by DEV. Then, all of DEV’s recommendations will be endorsed through the adoption of a resolution by the Municipal Council. All terms and conditions of the F.A.M.E. can be found at developpementvs.com/covid-19/ under Economic Measures.
It is worth noting that DEV’s mission is to foster regional economic growth and vitality through its support and value-added alternative financing programs, and by initiating major joint projects, with the goal of acting as a generator of regional values and sustainable prosperity.