Chantier de l'économie sociale Trust — Operations Patient Capital Loan
QC, Canada
Financial products to support social economy enterprises in Quebec
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|fromMinToMax
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grant_single|deadlines
- grant_single|openingDateAugust 18, 2022
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Health care and social assistance
grant_single|grantors
- Chantier de l'économie sociale Trust
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grant_card_status|open
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Get a loan from the trust between $50,000 and $250,000 to cover 35% of the costs directly associated with the operational needs.
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The eligible projects for the Patient Capital Loans grant include:
- Operations development or improvements
- Adaptation of products and services
- Start-up and expansion
grant_single|admissibleProjectsExample
$80,500
Calgary
Adaptation of healthcare services for elderly homes
$63,000
Toronto
Upgrade of digital infrastructure in local library
$84,000
Ottawa
Expansion of community arts and crafts program
$122,500
Montreal
Expansion of organic food production facilities
$108,500
Halifax
Development of a mobile application for mental health support
$96,250
Vancouver
Startup of an eco-friendly packaging company
grant_single_labels|admissibility
To be eligible for the Patient Capital Loans from the Chantier de l'économie sociale Trust, the social economy enterprises, non-profit organizations, and cooperatives must meet the following criteria:
1. The majority of employees must live in Québec.
2. Business assets are under one hundred million dollars ($100 million) or capital under fifty million dollars ($50 million).
Eligible Projects include:
- Operations development or improvements
- Adaptation of products and services
- Start-up and expansion
Ineligible Enterprises are:
- Those whose appointment processes for governing bodies don't ensure a preponderance of civil society stakeholders
- Enterprises that exclusively offer educational services or residential rental housing services
- Enterprises whose activities result in the substitution of jobs held or to be held by public sector employees
- Private enterprises
- Public bodies
Ineligible Projects include:
- Pre-start-up, recovery, refinancing of existing debts, early repayment of a long-term loan with the goal of lowering the overall costs of financing
- Financing activities that result in the substitution of jobs held or to be held by public sector employees.
grant_eligibility_criteria|who_can_apply
Québec social economy enterprises, non-profit organizations, and cooperatives are eligible for this grant.
grant_eligibility_criteria|who_cannot_apply
Private enterprises
Public bodies
grant_eligibility_criteria|eligible_expenses
Eligible expenses for this grant include:
- Working capital
- Equipment acquisition (office, computers, vehicles, machinery and tools)
- Absorb operational deficits during start-up
- Inventory
- Leasehold improvements
- Upgrading the enterprise’s capital
- Introducing new products to the market
- All other needs related to operations
grant_single_labels|otherInfo
- The patient capital loans are available for Quebec social economy enterprises, non-profit organizations, and cooperatives where the majority of employees live in Quebec.
- Eligible projects include operations development, adaptations of products and services, start-up, and expansion.
- Ineligible enterprises include those with governance processes not ensuring a preponderance of civil society stakeholders and those exclusively offering educational or residential rental housing services.
- Ineligible projects include pre-start-up, recovery, refinancing of existing debts, and activities resulting in job substitution of public sector employees.
Apply to this program
Summary of the Chantier de l’économie sociale Trust Patient Capital Loans
The Chantier de l’économie sociale Trust offers Patient Capital Loans to Québec social economy enterprises, non-profit organizations, and cooperatives for operational or real estate development, without capital repayment obligation for 15 years. It aims to support the start-up, expansion, and development of such enterprises with flexible financing options and competitive fixed interest rates.Understanding the Chantier de l’économie sociale Trust Patient Capital Loans
The Chantier de l’économie sociale Trust Patient Capital Loans are a comprehensive financial support solution designed to bolster the operational and real estate potential of social economy enterprises in Québec. These loans come with unique benefits and flexible conditions that significantly ease the financial burden on eligible organizations. This detailed overview will delve into various aspects of the grant, including its primary characteristics, eligibility requirements, types of loans available, and the advantages of opting for patient capital.Primary Characteristics
The Patient Capital Loans have been crafted to cater to the diverse needs of social economy enterprises, especially non-profit organizations and cooperatives operating in Québec. Here’s what makes these loans stand out:- Support for Start-Up and Expansion: The loans are tailored to assist in the start-up, expansion, and overall development of collective enterprises, providing much-needed capital to scale operations.
- No Capital Repayment Before 15 Years: One of the most significant advantages of these loans is the absence of capital repayment obligations before the end of its 15-year term. This provision helps alleviate cash flow pressures on enterprises.
- Monthly Interest Payments: Borrowers are required to make monthly interest payments, ensuring manageable and predictable outlays.
- Advance Capital Repayment Option: There's a provision for advance capital repayment without any penalties, offering flexibility to organizations that wish to pay off their loans sooner.
- Competitive Fixed Interest Rate: The loans come with a competitive fixed interest rate for the duration of the investment, ensuring stability in interest payments.
- Complementarity: These loans are designed to complement other financial products, enhancing the overall financial capacity of the enterprise.
Operations Patient Capital Loans
The Operations Patient Capital Loans are aimed at optimizing the day-to-day operations of social economy enterprises. Here's a closer look at what they encompass:Needs Addressed
These loans cover a wide range of operational needs including:- Working Capital: To manage daily business operations efficiently.
- Equipment Acquisition: This includes purchasing essential office equipment, computers, vehicles, machinery, and tools.
- Operational Deficit Absorption: Especially critical during the start-up phase, these loans can help absorb operational deficits.
- Inventory Management: Assisting with inventory purchases to ensure smooth business operations.
- Leasehold Improvements: Upgrading leased properties to better meet business needs.
- Capital Upgrading: Enhancing the organizational capital to improve operational efficiency.
- New Product Introduction: Financing the launch of new products into the market.
- Other Operational Needs: Any other requirements related to the ongoing operations of the enterprise.
Loan Details
- Loan Amount: Between $50,000 and $400,000.
- Guarantee: These loans do not require a guarantee.
- Project Costs: Can cover up to 35% of the project costs.
Real Estate Patient Capital Loans
These loans are focused on financing real estate projects essential for the growth and sustainability of social economy enterprises. Below are the specifics:Needs Addressed
The Real Estate Patient Capital Loans cater to various real estate-related expenses including:- Real Estate Assets: Costs related to the acquisition, construction, and renovation of buildings or warehouses.
- Professional Fees: Covering expenses such as fees for architects, land surveyors, notaries, etc.
- Transfer Taxes: Financing the taxes incurred during property transfers.
- Other Real Estate Costs: Includes moving costs, working capital for production stoppage, and other associated expenses.
Loan Details
- Mortgage Financing Requirement: Mortgage financing from a financial institution is required.
- Subordinated Guarantee: It requires a subordinated guarantee on fixed assets from the Chantier Trust.
- Loan Amount: Between $50,000 and $2.5 million.
- Project Costs: Can cover up to 35% of the project costs.
Eligibility Criteria
To qualify for the Chantier de l’économie sociale Trust Patient Capital Loans, organizations must meet specific eligibility criteria:Eligible Enterprises
- Must be social economy enterprises, non-profit organizations, or cooperatives based in Québec.
- The majority of employees must reside in Québec.
- Business assets should be under $100 million or capital under $50 million.
Eligible Projects
The loans can be used for various purposes including:- Operations Development or Improvements
- Adaptation of Products and Services
- Real Estate Projects
- Start-Up and Expansion
Ineligible Enterprises
Certain enterprises do not qualify for the loans, including:- Private Enterprises
- Public Bodies
- Enterprises with appointment processes that do not ensure a preponderance of civil society stakeholders.
- Enterprises exclusively offering educational services or residential rental housing services.
- Enterprises that result in the substitution of jobs held or to be held by public sector employees.
- Enterprises involved in excluded and sensitive sectors.
Ineligible Projects
Projects that do not qualify for the loans include:- Pre-Start-Up Projects
- Recovery of Existing Debts
- Refinancing of Existing Debts
- Early Repayment of Long-Term Loans