With our SMB Financial product, you can obtain a loan or loan guarantee.

ELIGIBILITY CRITERIA

Eligible Businesses

Your business is eligible if it operates in one of the following sectors:

• Manufacturing;
• New economy (biotechnology, pharmaceutical industry, information technology, aeronautics and aerospace);
• Certain computer and software service activities;
• Research laboratories;
• Tourism;
• Recycling;
• Environmental restoration;
• Waste recovery and processing;
• Call centres;
• Aquaculture, sea farming and marine biotechnology;
• Horticultural specialties.

Also, your succession plan must involve transferring over 50% of the voting or participating shares of your company, or transferring the bulk of its assets, to the following persons:  

• A family member;
• A manager or employee with your company;
• Any other individual or company in Québec.

A shareholding workers cooperative (SWC) can also obtain financing for a succession project through the Group Entrepreneurship program, regardless of the sector of the company in which it invests.

Eligible Projects

• Repurchase of your shares by your company;
• Purchase of shares by another company;
• Purchase of the bulk of assets by another company.

In addition to the above-mentioned projects, acquisition of capital assets or other assets as well as working capital enhancement are also eligible.

Special Requirements

• Your business must have a sound financial structure, adequate management, qualified staff and a solid organization.
• The succession plan must not be of a speculative nature.

FINANCING DETAILS

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

Terms and conditions

• The minimum amount of the loan guarantee or loan provided by Investissement Québec is $50,000.
• The maximum duration for financial assistance is ten years.
• The guarantee can cover up to 70% of the net loss or 75% for projects in outlying regions.*
• The loan amount provided by the financial institution may cover up to 100% of the net costs of the project.
• For loans directly granted by Investissement Québec, the amount provided can cover up to 75% of the total net project costs.  
• The interest rate on the loan is set by the financial institution.
• Interest is payable to the financial institution starting from the first loan disbursement.
• It is possible to defer repayment of the capital amount until after project completion.
• The usual securities are required based on the financing granted.

* Outlying regions include: Abitibi—Témiscamingue, Bas-Saint-Laurent, Côte-Nord, Gaspésie—Iles-de-la-Madeleine, Mauricie, Nord-du-Québec, Outaouais (excluding the municipality of Gatineau) and Saguenay—Lac-Saint-Jean.

Fees

Commitment and guarantee fees depend on the nature of the project. 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

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 loan, submit your application to an Investissement Québec advisor.

September 2009