Did you know that a Quebec government program can provide financial assistance to businesses and rental building owners faced with flooding?
The General Financial Assistance Program Regarding Disasters is designed to provide last-resort assistance to businesses and rental building owners affected by a loss not covered by insurance policies generally underwritten in Quebec.
Following some heavy rains during the summer in Quebec (particularly those of August 9 and 10), if you run a business or own a rental building that has suffered a loss, you may be able to file a claim for financial assistance and compensation. However, since the Program does not replace insurance contracts, you'll need to contact your insurer beforehand.
Types of Claims and Eligible Businesses
Here are the eligible losses (damage caused by strong winds is not eligible):
- Flooding caused by torrential rains, ice jams or rapid snowmelt causing watercourses to overflow (For an event to be considered a flood, a watercourse must overflow to the point where the water reaches a residential property. If water enters the home due to an infiltration or a sewer backup subsequent to flooding, the disaster will be deemed eligible to the program)
- Shoreline erosion;
- Submersion;
- Landslide;
- Earthquake.
The Program considers the following to be a business:
- A self-employed worker;
- A partnership;
- A corporation;
- A cooperative;
- A non-profit organization serving the community or local economy;
- A factory;
- An association responsible for maintaining an access road leading to a principal residence or business building;
- A condominium syndicate.
Requirements
To be eligible, your company must have declared gross revenues of between 5,000$ and 2 million $ for one of the two years preceding the loss (except in the case of an association responsible for maintaining an access road or a condominium corporation).
The 5,000$ minimum gross income does not apply to:
- A company that launched its activities in the 12 months preceding the loss;
- A non-profit organization;
- A factory;
- A cooperative that demonstrates its usefulness to the community or local economy.
In the case of a corporation, a shareholder must hold at least 25% of the voting shares for one of the two years preceding the loss. In the case of a partnership, a partner must participate in at least 25% of the profits for one of the two years preceding the loss. Supporting documentation is required to validate your identity and eligibility.
If you own and live in a commercial building, you will also need to submit a claim for owners and tenants.
Consult the list of eligible claims (available in French only) and business expenses (available in French only).
Rental Property Owners
To qualify, you must have declared a gross income of between 5,000$ and 2 million $ for one of the two years preceding the loss. The 5,000$ income is calculated per building, while the 2 million $ income is calculated for all buildings combined.
If the rental building is owned by several co-owners, one of them must hold a share of at least 25% for one of the two years preceding the loss.
Here too, supporting documents are required to validate your identity and eligibility.
If your rental building has more than one dwelling unit and you live in it, you must also submit a landlord application. If your building has only one dwelling and you live in it, start by making a claim for owners. The person in charge of your file will then tell you whether another application is required, depending on your damages.
Consult the list of eligible losses (available in French only) and eligible expenses for owners of rental buildings (available in French only).
Eligible Expenses and Compensation
In the event of a loss, a number of expenses are eligible for financial assistance and compensation. These include temporary preventive measures and emergency work.
- Financial aid is granted to compensate for measures taken or damage suffered in the event of a loss, on presentation of invoices showing that the aid has been properly used.
- Compensation is paid for measures taken or damage suffered in the event of a loss, without presentation of an invoice. However, you must keep the invoices for audit purposes.
Consult eligible expenses for businesses and rental building owners (available in French only), as well as the amounts granted under the general financial assistance program (available in French only).
How to Apply for Financial Assistance
If you've been affected by a flood, make sure that you have been identified as a disaster victim by your municipality. You should also contact your insurer before applying for financial assistance and compensation, because if you have flood coverage, it may cover your damages. If your coverage is inadequate, or if you don't have any, you may be eligible for financial assistance and compensation.
Be sure to follow the instructions on the What to do after a flood page. If you have been affected by a disaster other than a flood, make sure you have identified yourself as a disaster victim to your municipality and contacted your insurer before applying for financial assistance and compensation. If the loss is covered under your insurance policy, you are not eligible for the program.
To learn more as to the deadline for submitting an application for financial assistance and compensation, click here (Avaliable in French only). If you are unable to submit your application before the deadline, you must explain the reason in writing to the Ministère de la Sécurité publique.
To apply for assistance, complete and sign the necessary forms based on your situation, and provide copies of the required documents. Submit them to the Direction générale du rétablissement (Available in French only).
