Quebec economy minister isn’t giving up on forgivable loans, but wants fewer of them

Quebec Minister of Economy, Innovation and Energy and Minister Responsible for Maritime Strategy Bernard Drainville responds to the Opposition during question period at the legislature in Quebec City, Tuesday, May 26, 2026. (Jacques Boissinot/The Canadian Press)

The Christine Fréchette government wants to reduce business assistance provided in the form of forgivable loans, but Economy Minister Bernard Drainville does not want to rule out the option outright.

“We will grant fewer of them, but we do not wish to rule out any form of forgivable loan outright, because there may come a time when there are projects for which it is justified,” the minister said during a parliamentary committee hearing on Wednesday.

A forgivable loan is a loan that does not have to be repaid if certain conditions are met, such as investments or a defined threshold of jobs created.

During an exchange with the minister, the Parti Québécois (PQ) spokesperson on economic affairs, Catherine Gentilcore, described forgivable loans as “the most opaque form of government support.”

“Right now, among the public, ‘forgivable loan’—I’ll tell you—is synonymous with ‘grant,’” she said.

The minister has no intention of abandoning forgivable loans.

“My mindset is to reduce the number and the amount, but I don’t want to be dogmatic in my approach. I think we need to remain pragmatic,” said Drainville. “Sometimes, we need to look at the mix of financial aid, and sometimes, yes, it can become a tool that will allow us to attract investment.”

The government sometimes has a duty to intervene in the economy, Drainville argued.

“There are projects at times that ... we just can’t pass them up. They’re simply projects that are too important for Quebec’s economic future.”

This report by The Canadian Press was first published in French on May 27, 2026.