We can provide a capitalization loan or, in some cases, purchase preferred shares.

ELIGIBILITY CRITERIA

Eligible Organizations

Your organization is eligible if it belongs to one of the following categories:

• Cooperative undertaking: a cooperative, federation or confederation of cooperatives governed by the Québec Cooperatives Act.
• Non-profit organization : a non-profit legal person constituted under Part III of the Quebec Companies Act that meets the following characteristics:
  • Its main objective must be to produce goods or services for its members or the community;
  • Its operating methods must rely on democratic management and seek individual and collective participation, empowerment and responsibility;
  • Its members and the members of its board of directors may include persons designated by the government or a public or quasi-public agency that reports to the government; however, said members must remain a minority and cannot exert control over the organization;
  • It derives most of its revenue from commercial activities carried out with private- or public-sector consumers.

Eligible Projects

Business start-up;

Development or expansion project;

Consolidation.

Special Requirements

You must demonstrate that the financing granted will serve to develop an appropriate financial structure for your undertaking.

The financing granted cannot substitute for an offer from a financial institution.

Your organization must have adequate management, qualified staff and a solid organization, and must have access to a viable market.

FINANCING DETAILS

Financing consists of a capitalization loan or the purchase of preferred shares.

Terms and Conditions

• The amount requested must fill a need for equity capital.
• A second equity partner is generally recommended. However, it is required when the equity need exceeds $100,000.
• The financial assistance may not exceed 35% of the project costs.
• The maximum duration of financing is 10 years, with a possible five-year extension.
• The maximum amount of financing varies between $25,000 and $500,000, depending on the project.
• A preferred interest rate is set for a period of five years, which is then renewable for another five-year term at the rate in effect at the time of renewal.
• Repayments of the capital amount will be deferred for at least two years (maximum five years) after the first disbursement.
• Repayments of the capital amount are partly fixed and partly variable.

Fees

Commitment and guarantee fees depend on the nature of the project. In general, no guarantee is required. To find out more about the cost of financing your project, talk to an Investissement Québec advisor.

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

Submit your application to Investissement Québec. We will review your file and then contact you.

August 2008