With the SMB Financial program, you can obtain a loan or loan guarantee.

ELIGIBILITY CRITERIA

Eligible Businesses

Your business is eligible for the interim financing of tax credits if it qualifies for one of the following:

• Scientific research and experimental development (SRED): Federal and provincial sections.
• Knowledge-based economy : Development of E-Business (CDAE); Biotechnology Development Centres (CDB); Major Employment-generating Projects in the IT Sector (GPCE); Production of Multimedia Titles (PTM); Technological Adaptation Services (SAT); Information Technology Development Centre (CDTI)*; Cité Multimédia of Montréal (CMM)*; New Economy Centres (CNE)*; Centre national des nouvelles technologies de Québec (CNNTQ)*; E-Commerce Place (CCE)*.
• Payroll increase : Aluminum Valley (VA); Gaspésie Region and Certain Quebec Maritime Regions (GM); Processing Operations in Resource Regions (AT); E-Business Activities (AAE)*.
• Others: Investment relating to manufacturing and processing equipment; Shipbuilding and ship conversion (CTN); Construction of public-interest forest access roads and bridges; Montreal Foreign Trade Zone at Mirabel (ZCIMM)*.

* This measure was abolished on June 12, 2003. Nevertheless, you may submit an application for refundable tax credit financing if your company holds an eligibility certificate issued prior to this date.

Eligible Projects

Projects eligible for refundable tax credits pursuant to tax legislation:

• Tax credits for scientific research and experimental development activities;
• Tax credits for knowledge-based economy activities;
• Tax credits for payroll increase;
• Other tax credits, as defined above.

Special Requirements

Your business must submit a cash budget demonstrating the unmistakeable need for additional working capital.

Your business must have a sound financial structure, adequate management, qualified staff and a solid organization.

FINANCING DETAILS

We can provide a loan or loan guarantee. Our loan guarantee is a repayment guarantee on the net loss of a loan granted by a financial institution.

Terms and Conditions

• The minimum amount of the loan guarantee provided by Investissement Québec is $50,000 for the SRED tax credits and $20,000 for the other tax credits.
• The loan guarantee can cover up to 80% of the net loss.
• The maximum duration for financial assistance is 18 months.
• For loans granted by Investissement Québec, the amount provided may cover up to 75% of refundable tax credits for one fiscal year (two years in some exceptional cases).
• The minimum loan provided by a financial institution is $62,500 for the SRED tax credits and $25,000 for the other tax credits.
• The interest rate is set by the financial institution.
• Interest is payable to the financial institution starting from the first loan disbursement.
• Repayment of the capital amount comes directly from the tax credits to be paid.
• The usual securities are required based on the financing granted.

Working Capital for Export Businesses

Exporting businesses can receive working capital financing equal to 85% of the refundable tax credits. Click here for more information about the program.

Fees

The commitment fee is 1% of the loan amount and the guarantee fees are 2% of the guaranteed loan.

PROCEDURE

Step 1

Contact an Investissement Québec advisor, who will answer your questions and recommend the product that best suits your needs.

Step 2

The advisor will help you draw up a list of the information you must provide: business plan, nature of the project, financing sought, planned expenses, marketing plan, guarantees, etc.

Step 3

For loan guarantees, submit your application to the financial institution of your choice. The institution will consult us to review your file; we will then contact you. For direct loans, submit your application to an Investissement Québec advisor.

April 2009