Collective entrepreneurship financing
QC, Canada
Loans for co-op business projects in Quebec
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|minCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateNovember 14, 2019
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Gouvernement du Québec
- Investissement Québec (IQ)
grant_single|status
grant_card_status|open
grant_single_labels|preview
Loans covering up to 100% of the costs for most co-operative and not-for-profit business projects, starting at $50,000.
grant_single_labels|projects
The grant supports various projects and activities for cooperatives and non-profits, provided they have market activities.
- Acquisition, expansion, construction, and modernization of buildings
- Purchase of machinery and equipment
- Working capital
- Financing worker-shareholder cooperatives for acquiring employer shares
- Refinancing
- Expansion into new markets
- Acquisition of intangible assets (trademarks, patents, etc.)
grant_single|admissibleProjectsExample
$55,000
Launching a digital marketing campaign for a social economy enterprise
$70,000
Modernization of a community arts center building
$80,000
Acquisition of a new software system for a financial cooperative
$60,000
Refinancing of existing loans for a cooperative bookstore
$100,000
Acquisition of new machinery and equipment for a textile manufacturing cooperative
$60,000
Expansion of an organic food cooperative to include a new retail location
grant_single_labels|admissibility
To be eligible for this grant, cooperatives and non-profit organizations must have commercial activities.
- Cooperatives or non-profit organizations (NPOs)
- Engaged in commercial activities
grant_eligibility_criteria|who_can_apply
Eligible organizations for this grant include cooperatives and non-profit organizations (NPOs) with commercial activities. The support offered aims to help these entities with various financial needs and projects.
- Cooperatives
- Non-Profit Organizations (NPOs) with commercial activities
grant_eligibility_criteria|who_cannot_apply
Companies not engaging in commercial activities
grant_eligibility_criteria|eligible_expenses
Eligible expenses for this grant can include various types of projects such as acquisitions, modernizations, and financing needs.
- Acquisition, agrandissement, construction, modernisation d’un bâtiment
- Achat de machinerie et d’équipement
- Fonds de roulement
- Financement d’une coopérative de travailleurs actionnaires pour l’acquisition d’actions de leur employeur
- Refinancement
- Implantation sur un nouveau marché
- Acquisition d’actifs incorporels (marques de commerce, brevets, etc.)
grant_eligibility_criteria|zone
There are no specific eligible geographic zones mentioned for this grant.
grant_single_labels|criteria
Engagement in commercial activities, regardless of industry or field
Project eligibility including acquisition, expansion, construction, modernization, working capital, refinancing, and more
Minimum financing of $50,000
Potential for up to 100% coverage of project costs
Flexible terms tailored to individual needs
Possibility of deferral of principal repayment up to 24 months
grant_single_labels|register
- Step 1: Identify the project and ensure it qualifies as an eligible project under the criteria listed (e.g. acquisition, construction, modernization, etc.).
- Step 2: Prepare a detailed project plan including objectives, scope, financial projections, timelines, and resource requirements.
- Step 3: Gather necessary documentation such as financial statements, business plans, proof of activities, and any other relevant information that supports the application.
- Step 4: Consult with Investissement Québec or relevant financial experts to discuss financing options and determine appropriate loan types or partnerships.
- Step 5: Complete the application form provided by Investissement Québec, ensuring all fields are accurately filled out and all required documents are attached.
- Step 6: Submit the completed application and await confirmation or further requests for information from Investissement Québec.
- Step 7: If approved, carefully review the financing agreement terms, including any repayment schedules, moratoriums, and guarantees.
- Step 8: Sign and return the financing agreement to formalize the arrangement and receive fund disbursement as per agreed terms.
grant_single_labels|otherInfo
Investissement Québec offers a flexible financial support system to cooperatives and non-profit organizations (NPOs) for various types of projects with the ability to cover up to 100% of project costs.
- Can partner with other lenders to provide competitive loans
- Options include short-term or long-term loans (up to 25 years for real estate)
- Possible repayment moratorium on capital (up to 24 months)
- Projects like building acquisition, construction, machinery purchase, new market implementation, and acquisition of intangible assets are eligible
- Eligibility requires cooperatives and NPOs to have commercial activities
Apply to this program
Summary of the Grant
Investissement Québec offers flexible financial solutions to cooperatives and non-profit organizations (NPOs) to support their collective entrepreneurial projects. These financing options, including competitive loans and quasi-equity financing, cover a range of activities such as acquisition, modernization, and market expansion.
In-Depth Explanation of the Investissement Québec Grant for Cooperatives and NPOs
Investissement Québec is a significant catalyst for the economic development of Quebec, providing a suite of tailored financial solutions to foster collective entrepreneurship. By supporting cooperatives and non-profits, especially those with business-oriented activities, Investissement Québec aims to stimulate sustainable economic growth, ensure community vitality, and support innovative business models. Here's a detailed look at the grant and financing options available, eligibility criteria, and benefits.
Overview of Financial Solutions
Investissement Québec recognizes that each project and organization has unique needs and challenges. Therefore, they offer a variety of adaptable and flexible financial solutions to address the specific requirements of cooperatives and NPOs. These solutions include:
- Competitive-Rate Loans: Organizations can obtain loans at competitive rates, which can help them finance a multitude of projects including expansion, equipment purchase, and more.
- Partnership Loans: These loans involve partnerships with other financial institutions to pool resources and share risks, thereby offering enhanced financing terms to the applicants.
- Loan Guarantees: Investissement Québec provides loan guarantees to mitigate the risk assumed by financial institutions, allowing cooperatives and NPOs to access financing more easily. This is particularly beneficial for short-term financial needs such as working capital.
- Quasi-Equity Financing: This innovative financial product includes subordinated debt, which is a form of debt financing subordinated to other types of debt but senior to equity. This allows organizations to benefit from equity-like advantages without dilution of ownership.
- Acquisition of Preferred Shares: For cooperatives, Investissement Québec can invest in preferred shares, providing equity capital while ensuring the cooperative maintains control and governance.
Benefits and Flexibility
Investissement Québec's financing solutions are designed with flexibility and sustainability in mind. Here are some benefits:
- Comprehensive Coverage: Financial assistance can cover up to 100% of project costs, usually in partnership with other lenders, enabling organizations to embark on significant projects and expansion plans without immediate financial stress.
- Liquidity Preservation: By securing financing through loans or quasi-equity, organizations can retain their liquid assets, enabling smoother day-to-day operations and financial stability.
- Long-term Financing: For assets like real estate, financings can extend up to 25 years, ensuring that the repayment terms align with the useful life of the asset, thereby enhancing cash flow management.
- Capital Repayment Moratorium: A moratorium of up to 24 months on capital repayment provides financial breathing space during the initial stages of the project, allowing organizations to stabilize operations before loan repayments commence.
- Tailored Security Requirements: Depending on the project and organization, different forms of collateral may be required, offering flexibility in securing the necessary funds.
Eligible Projects
Investissement Québec is open to financing a wide range of projects, recognizing that each has the potential to drive economic and community development. Here are some examples:
- Real Estate Projects: Acquisition, expansion, construction, or modernization of buildings to improve operational capacity or enter new markets.
- Machinery and Equipment: Purchasing new machinery or upgrading existing equipment to enhance productivity and operational efficiency.
- Working Capital: Ensuring that day-to-day operations are smoothly run by maintaining a healthy working capital buffer.
- Worker Shareholder Cooperatives: Supporting employees to acquire shares in their employer's company, fostering a cooperative business model.
- Refinancing: Refinancing existing debts to achieve better terms, thus reducing financial strain on the organization.
- Market Expansion: Costs associated with entry into new markets, including marketing, distribution, and regulatory compliance.
- Intangible Assets: Acquisition of intellectual properties such as trademarks and patents, which can enhance the organization's strategic assets and competitive edge.
Eligibility Criteria
To ensure that the funds are allocated effectively, Investissement Québec has set forth eligibility criteria that cooperatives and NPOs must meet:
- Business Activities: Organizations must be engaged in business activities. This means they produce goods or provide services that generate revenue. Purely charitable or non-commercial activities do not qualify.
- Quebec-Based Organizations: The grant primarily targets organizations based in Quebec or those planning significant operations in the province.
Application Process
The application process for Investissement Québec's financial solutions is designed to be straightforward, though it requires detailed planning and documentation:
- Initial Consultation: Potential applicants are encouraged to engage in a preliminary consultation with Investissement Québec's financing experts to discuss their project and identify suitable financial products.
- Project Proposal: Submit a detailed project proposal outlining the business plan, financial projections, and the intended use of funds. Clearly articulate how the project aligns with the economic and community development objectives of Investissement Québec.
- Financial Documentation: Provide comprehensive financial documents, including balance sheets, income statements, and cash flow statements. Additionally, outline any current debts and repayment obligations.
- Review and Approval: Investissement Québec will review the application, assessing the project's viability, economic impact, and alignment with strategic priorities. This includes risk assessment and due diligence.
- Agreement and Disbursement: Upon approval, an agreement detailing the terms of the financial assistance will be signed. Funds will be disbursed according to the project's milestones and agreed terms.
Conclusion
Investissement Québec’s robust financial solutions are instrumental in supporting cooperatives and NPOs in implementing impactful and sustainable projects. By providing flexible, tailored financing that covers diverse needs from real estate to market expansion, Investissement Québec not only fosters economic growth but also empowers organizations to achieve long-term success and community development. Through this comprehensive support, cooperatives and NPOs can navigate financial challenges, preserve liquidity, and focus on their mission to drive collective success.
