CDEM — Term loan
Registered members of the Innu and Naskapi bands residing on or off the communities in Quebec.
Overview
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.
At a glance
Funding available
- Start a business
- Renovate or expand facilities
- Maximum amount : 1,000,000 $
- Up to 10% of project cost
Eligible candidates
- All industries
- Côte-Nord
- Quebec
- Non-financial cooperative
- For-profit business
- All revenue ranges
- All organization sizes
- Indigenous Peoples
Next Steps
Activities funded
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.
Eligibility
Who is eligible?
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.
Who is not eligible
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.
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
Eligible geographic areas
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.
How to apply
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.
Additional information
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.