CDEM — Term loan
QC, Canada
Financial support for business start-up, acquisition, or expansion
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Corporation de développement économique montagnaise (CDEM)
grant_single|status
grant_card_status|open
grant_single_labels|preview
The CDEM — Term loan offers up to $1 million for businesses aimed at starting, acquiring, or expanding operations. Eligible activities include financing buildings, equipment, and leasehold improvements.
grant_single_labels|terms_and_conditions
The CDEM term loan provides structured financing options for businesses seeking development and expansion in their respective domains. The funding terms are carefully designed to align with the financial health and repayment capability of applicants.
- Loan with a maximum term of 15 years for business endeavors.
- Temporary loans with a maximum term of 1 year available for interim financing during waiting periods for funds from governmental agencies or other sources.
- Loan limits of up to $500,000 for private enterprises and $1 million for collective enterprises.
- Loans feature competitive interest rates comparable with other traditional financial institutions, tailored according to risk and guarantees offered.
- A $150 upfront application fee is required along with an analysis fee amounting to 0.5% of the loan granted, with a minimum of $150.
grant_single_labels|projects
This financial aid facilitates the growth and establishment of businesses, providing support for various types of investments within enterprises. Eligible projects focus on enhancing physical assets and infrastructure necessary for business operations.
- Construction or renovation of buildings.
- Purchase and upgrade of rolling stock.
- Acquisition of equipment and necessary machinery.
- Improvements to leased commercial spaces.
grant_single|admissibleProjectsExample
$ 90,000
Establishing a community co-working space for digital nomads
grant_single_labels|admissibility
Eligibility for the CDEM Term Loan is determined by specific requirements related to the applicant's financial background, project viability, and ownership structure.
- The applicant must present a viable business project.
- The applicant must have good credit history.
- The applicant must possess experience and training in the business domain.
- A minimum down payment of 10% of the project cost is required, calculated based on the applicant's net worth.
- Eligible borrowers are restricted to those who are members of the 9 Innu communities of Québec or the Naskapi community, including members residing on or off the community in Québec.
- Eligible entities include incorporated commercial enterprises with majority Innu or Naskapi ownership (51% voting shares), partnerships, or cooperatives with majority Innu or Naskapi partners or members.
- Businesses can be located either on or off the community's lands.
- Applicants facing legal claims that could potentially compromise the business’s financial health are not eligible.
- Applicants must not be insolvent or an undisclosed bankrupt.
- Sufficient equity in the project must be demonstrated by the applicant.
- The applicant's business acumen must be deemed adequate.
grant_eligibility_criteria|who_can_apply
The CDEM term loan is specifically designed to support businesses primarily owned by members of the 9 Innu communities or the Naskapi community in Quebec. Eligible applicants include:
- Registered members of the Innu and Naskapi bands residing on or off the communities in Quebec.
- Commercial enterprises incorporated under provincial or federal law, with at least 51% of voting shares owned by Innu or Naskapi members.
- Partnerships or cooperatives operating a commercial business, where the majority (51%) of partners or members are Innu or Naskapi.
However, certain entities are not eligible, including those who are insolvent, facing potential claims that could endanger financial health, lack sufficient equity for their projects, have demonstrated insufficient business competence, or whose conditions could negatively affect the business operations.
grant_eligibility_criteria|who_cannot_apply
The CDEM — Term loan program has specific restrictions on the eligibility of companies based on their financial status and the nature of their projects. These restrictions ensure that funding is aligned with the program's mission to support viable business ventures.
- Companies or individuals who are insolvent or non-discharged bankrupts.
- Projects where the applicant cannot demonstrate sufficient equity in their project.
- Businesses or persons facing claims or lawsuits that could endanger the financial health of the enterprise.
- Individuals whose business competence is deemed insufficient.
- Persons whose circumstances could negatively impact the business project or operations.
- Requests for personal loans or loans without tangible guarantees.
- Loans for residential properties, condominiums, or real estate speculation.
- Variable credit products such as lines of credit or credit for operations.
- Projects oriented towards social or community needs without a clear commercial objective.
- Debt refinancing.
grant_eligibility_criteria|eligible_expenses
The grant supports various expenses necessary for the establishment, acquisition, or expansion of a business.
- Buildings
- Rolling stock
- Equipment
- Leasehold improvements
- Working capital
grant_eligibility_criteria|zone
This loan is specifically targeted for companies owned by individuals from certain Indigenous communities in Quebec. It aims to support the development of businesses in these regions.
- Companies owned by members of the nine Innu communities in Quebec.
- Enterprises owned by members of the Naskapi community.
grant_single_labels|register
Here are the steps to apply for the CDEM — Term loan:
- Step 1: Document Preparation
- Prepare a detailed business project proposal that outlines the viability of the enterprise.
- Ensure you have a personal balance sheet and a declaration from the applicant.
- Include a professional curriculum vitae.
- If applicable, provide proof of Indigenous ancestry.
- Complete a business plan, if already available.
- Step 2: Submit Financial Information
- Collect and submit financial statements for the last three years if the business is existing.
- Include recent interim financial statements.
- Submit the company's constitutive documents.
- Provide a purchase offer in case of acquiring an existing business.
- Step 3: Application Submission
- Complete the funding application specifically for individual or community purposes.
- Submit all documentation either via email to info@cdem.ca or mail to the specified address.
- Step 4: Additional Documentation
- Be prepared to submit any additional required documents upon request.
grant_single_labels|otherInfo
Additional pertinent details for applicants include:
- The interest rates and administrative fees will be calculated based on the risk assessment of the applicants, aligning with CDEM's policies.
- There is a non-refundable file opening fee of $150, payable in advance.
- An analysis fee amounts to half of 1% of the loan granted, with a minimum of $150.
- Administrative fees will not exceed 1% of the loan amount or $150, whichever is higher.
- The maximum annual interest rate applied will not surpass 14.5%.
- The repayment period is capped at five years, subject to the borrower's established cash flow situation.
- Applicants must operate in an environmentally responsible manner.
grant_single_labels|contact
info@cdem.ca
418 968-1246
Apply to this program
Access Capital for Business Growth with CDEM
The CDEM Term Loan offers businesses in Quebec an opportunity to secure funding for starting, acquiring, or expanding their operations. With competitive interest rates and terms up to a maximum of 15 years, the loan is designed to support a wide variety of business needs.
In-depth Information About CDEM Term Loan Program and Benefits
The CDEM Term Loan program is available to both private enterprises and collective businesses, with funding limits set at $500,000 and $1 million, respectively. This structure ensures that businesses of varying scales have the ability to fuel their projects and push towards greater success and sustainable development. The repayment plans are sympathetically constructed, considering the cash flow situations of the businesses, thereby offering a financial mechanism that aligns with the operational dynamics of business entities.
By engaging with this funding opportunity, eligible companies can address immediate infrastructure needs such as building acquisitions, equipment purchases, and rolling stock enhancements. The ability to secure financing for leasehold improvements further exhibits the versatility this loan offers, enabling businesses to enhance their operational capabilities and market presence. In addition, CDEM emphasizes a competitive and very competent interest rate structure which is comparable to those from traditional financial institutions, calculated based on the perceived risk and the guarantees provided by the borrower.
Key to securing this term loan is the demonstration of sound financial management and credible business plans. Borrowers are expected to present viable business projects and provide adequate guarantees to cover the borrowed amount. CDEM mandates that borrowers must contribute a minimum equity investment equating to 10% of the project cost calculated according to the net worth of the applicant. This requirement assures the involvement and commitment of the borrower towards the project while concurrently minimizing the risk exposure for the lending body.
Applicants are required to submit comprehensive documentation including personal statements, community-specific financing applications, and detailed business plans. Existing businesses must also present financial statements for the preceding three years, ensuring that there is a clear financial history for CDEM to accurately assess potential risk and repayment capabilities. For those acquiring a business, an official offer to purchase must be included in the documentation to substantiate the acquisition plan.
Open to predominantly Innu or Naskapi-owned enterprises, this program is uniquely tailored towards empowering businesses within these communities. This aspect of the CDEM loan program underscores its commitment to fostering economic growth and prosperity in indigenous sectors across Quebec. It also offers these communities a pivotal financial resource to build up business capacities and enhance economic self-sufficiency, thereby making a substantive impact on the broader economic landscape of these regions.
It’s important to note that this loan is not available for purposes such as personal loans, speculative real estate ventures, community-focused projects, or credit line-based financings. By setting these boundaries, CDEM ensures that the loan program remains focused on promoting core business activities with substantial growth potential rather than transient or non-viable ventures.
The CDEM Term Loan program is structured with a keen understanding of the entrepreneurial spirit in Quebec, providing the necessary financial foundation for businesses to thrive and expand. This opportunity stands out as a beacon for businesses seeking a robust financial partnership to turn their innovative ideas into sustainable realities.
