Chantier de l'économie sociale Trust — Real Estate Patient Capital Loans
QC, Canada
Loans for social economy real estate projects in Quebec
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|fromMinToMax
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateAugust 18, 2022
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Chantier de l'économie sociale
grant_single|status
grant_card_status|open
grant_single_labels|preview
Get a trust loan between $50,000 and $1.5 million, to cover 31.5% of the costs directly related to the acquisition, construction, or renovation of real estate assets such as land, a building, a warehouse, etc.
grant_single_labels|projects
This funding opportunity is exclusive to social economy enterprises operating within a specific geographic scope as defined by the eligibility criteria. The eligibility is focused primarily on enterprises with a significant presence in a particular Canadian province.
- Québec
grant_single|admissibleProjectsExample
$267,750
Opening a community center for youth engagement
$220,500
Renovation of a historic building for a community arts space
$78,750
Expansion of a local bookshop to a larger space and renovation
$126,000
Launching an eco-friendly fashion brand focusing on sustainable materials
$189,000
Establishing a new cooperative bakery in the heart of Halifax
$173,250
Upgrading equipment for a local cooperative brewery
grant_single_labels|admissibility
Eligibility for this grant is determined by specific requirements related to the profile of Québec-based social economy enterprises.
- The enterprise must be a Québec social economy enterprise, non-profit organization, or cooperative.
- The majority of employees must reside in Québec.
- The enterprise must have business assets valued at less than one hundred million dollars ($100 million) or capital under fifty million dollars ($50 million).
grant_eligibility_criteria|who_can_apply
Québec social economy enterprises, non-profit organizations, and cooperatives that meet specific criteria can apply for these financial products offered by the Chantier de l'économie sociale Trust to support their development or improvement of operational or real estate potential.
grant_eligibility_criteria|who_cannot_apply
This grant excludes certain types of companies and projects based on their status and main activity. These restrictions ensure the support is primarily directed toward enterprises within the social economy in Québec.
- Private enterprises.
- Public bodies.
- Enterprises whose governing bodies do not predominantly consist of civil society stakeholders.
- Enterprises exclusively offering educational services or residential rental housing services.
- Enterprises with activities that substitute jobs held by public sector employees.
- Enterprises operating in excluded and sensitive sectors.
- Projects related to pre-start-up phases, recovery, refinancing of existing debts, or early repayment of a long-term loan.
grant_eligibility_criteria|eligible_expenses
The grant supports the advancement of social economy enterprises by providing financial aid for the development and enhancement of operational and real estate capacities. Eligible activities include a diverse range of operational and real estate projects aimed at growth and adaptation.
- Development or improvement of operations.
- Adaptation of products and services.
- Real estate projects such as acquisition, construction, or renovation.
- Start-up initiatives.
- Expansion projects.
grant_eligibility_criteria|zone
The financial products cover expenses related to both operational improvements and real estate projects for social economy enterprises.
- Working capital for operational needs.
- Equipment acquisition, including office equipment, computers, vehicles, machinery, and tools.
- Costs to absorb operational deficits during start-up.
- Inventory purchases.
- Leasehold improvements and upgrading the enterprise’s capital.
- Costs associated with introducing new products to the market.
- All other operational needs.
- Expenses directly related to the acquisition, construction, and renovation of real estate assets.
- Professional fees, including architect, land surveyor, and notary fees.
- Transfer taxes related to real estate.
- Other real estate project-related costs, such as moving costs and working capital for production stoppage.
grant_single_labels|criteria
There are evaluation and selection criteria for this grant.
- Demonstrated need for patient capital financing
- Alignment of the project with the goals and eligibility criteria of the Chantier Trust
- Potential impact of the project on the social economy and community
- Viability and sustainability of the enterprise
- Capacity of the enterprise to manage the funds effectively
grant_single_labels|register
- Step 1: Determine Eligibility
- Ensure your enterprise is a Québec social economy enterprise, non-profit organization, or cooperative with assets or capital below specified thresholds.
- Verify your project aligns with eligible project types, such as operational development or real estate projects.
- Step 2: Prepare Documentation
- Gather necessary financial statements and proof of registration as a social economy enterprise.
- Prepare a detailed description of your project and how the patient capital loan will be utilized.
- Include supporting documents such as business plans, budgets, and financial projections.
- Step 3: Complete Application Form
- Access the Chantier de l’économie sociale Trust's application form online or through a contact point.
- Fill in all required fields with accurate details about your enterprise and project.
- Step 4: Submit Application
- Submit the completed application form and all accompanying documents to the Chantier Trust, either electronically through their portal or by mail to their designated address.
- Step 5: Await Feedback and Further Instructions
- Wait for confirmation of receipt and any requests for additional information or documents from the Chantier Trust.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- The interest rate for the loans is competitive and fixed throughout the 15-year term, providing predictability in financial planning.
- There is a possibility of making advance capital repayments without incurring any penalties, offering flexibility in financial management.
- The loans do not require capital repayment obligations until the end of their 15-year term, providing a longer horizon for financial stability.
- Real estate loans require a mortgage from a financial institution and are secured with a subordinated guarantee from the Chantier Trust.
- Flexible financing conditions are intended to lower financial risks and improve the debt-equity balance of the borrowing enterprises.
- The availability of these loans helps enterprises conserve capital for project needs by reducing the annual cash outflows associated with project financing.
Apply to this program
Empowering Québec's Social Economy Enterprises
The Chantier de l’Économie Sociale Trust offers patient capital loans aimed at fostering the growth and development of Québec’s social economy enterprises. This innovative financial product is designed to facilitate operational and real estate advancements, supporting the evolution of collective businesses across the province.
Understanding the Benefits of Patient Capital Loans
Patient capital loans from the Chantier de l’économie sociale Trust serve as a vital financial instrument for Québec's social economy enterprises, which include non-profits and cooperatives. These loans are particularly advantageous for ventures looking to expand their operations or invest in real estate developments due to their favorable terms that alleviate financial stress. Offering long-term financing options without the demand for immediate capital repayment, these loans provide flexibility that helps enterprises maintain operational liquidity and focus on growth strategies.
The operational loans can be used to support a wide range of needs such as working capital, equipment acquisitions, leasehold improvements, and even for covering startup operational deficits. With loan values ranging from $50,000 to $400,000, these financial products enable enterprises to undertake significant projects without the pressure of early repayments, as they focus solely on interest payments throughout the 15-year term. Moreover, these loans are offered without a requirement for guarantees, which significantly reduces the burden on enterprises, especially during the critical initial stages of their projects. This feature alone can make patient capital a compelling choice when compared to traditional financing methods, which often entail strict repayment terms and guarantees.
For enterprises pursuing real estate development projects, patient capital loans can cover costs associated with the acquisition, construction, and renovation of real estate. With a threshold of up to $2.5 million covering up to 35% of project costs, these loans provide substantial financial support that can act as a crucial lever when securing additional financial resources. Although these loans require a subordinated mortgage in conjunction with a primary mortgage from a financial institution, the streamlined terms remain favorable, enabling enterprises to undertake development activities without disproportionate risk.
Patient capital is distinguished by its ability to ease the financial burden on enterprises, enabling them to allocate more funds towards mission-critical activities such as innovation and market expansion. By reducing the annual financial obligations associated with typical debt financing, enterprises can enjoy a better debt-equity balance, leading to improved financial health and customer service capabilities. Its role as a resource that complements other financial products underscores its strategic importance in a comprehensive financial plan, as it aids in securing additional partnerships and financial backing.
Moreover, the terms associated with these loans contribute to creating a stable financial environment for enterprises, with a fixed competitive interest rate providing predictability and stability essential for long-term business planning. This stability is further enhanced by the absence of penalties for advance repayments, allowing enterprises more control over their financial strategies.
Overall, the patient capital loans from the Chantier Trust play a crucial role in empowering Québec’s social economy enterprises, providing them not only with financial support but also the stability and flexibility needed to thrive in a competitive environment. By facilitating growth and operational improvements without imposing undue financial strain, these loans champion the sustainability and expansion of enterprises that are the backbone of the social economy.
