DEL — Business Acquisition Loan QC Canada

DEL — Business Acquisition Loan

Longueuil, QC, Canada
Supports entrepreneurs intending to acquire at least 25% of an existing business to facilitate a management and ownership transfer within five years.
grant_single_labels|summary
grant_single_labels|preview
grant_single_labels|projects
grant_single_labels|admissibility
grant_single_labels|criteria
grant_single_labels|register
grant_single_labels|otherInfo
grant_single_labels|contact

grant_single_labels|summary

grant_single|eligibleFinancing
  • grant_single|maxCount
  • grant_single|projectCostPercent
grant_single|deadlines
  • grant_single|openingDateJuly 09, 2024
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
  • grant_single|allIndustries
grant_single|grantors
  • Développement économique de l'agglomération de Longueuil (DEL)
  • Longueuil City
grant_single|status
grant_card_status|open

grant_single_labels|preview

The Business Acquisition Loan supports entrepreneurs intending to acquire at least 25% of an existing business with the goal of executing a takeover within 5 years. Eligible activities include purchasing shares, acquiring business assets, and covering professional service fees related to the acquisition. The loan offers up to $150,000 with flexible repayment options, including term or equity loans, "excess cash flow" loans, and debentures.

grant_single_labels|projects

grant_single|admissibleProjectsExample

$ 75,000

Investment in 25% of a local marketing firm to enhance digital marketing solutions

$ 88,000

Acquisition of a 30% stake in a local manufacturing company for expansion

$ 115,000

Acquiring 30% of a healthcare software company to improve patient care solutions

$ 90,000

Acquiring a 35% stake in a local restaurant for business growth and development

$ 130,000

Buying a 40% share of a tech startup to foster innovation in AI

$ 65,000

Purchase of a 25% interest in a local organic farm to promote sustainable agriculture

grant_single_labels|admissibility

This grant aims to support entrepreneurs in acquiring an existing business, requiring them to meet several eligibility criteria to qualify for financial assistance. The applicant must work full-time in the business and possess a significant stake of at least 25% with relevant experience and training.
  • Be legally constituted
  • Be located in the DEL region or plan to be
  • Operate in an eligible industry and offer value-added services or products generally intended for businesses (B2B)
  • Submit a project that involves acquiring a business with the intention of taking it over and that will help create and/or maintain jobs
  • Own at least 25% of the business and work there full-time
  • Have experience and training that is relevant to the project
  • Submit a project for which government financing and DEL financing combined cover a maximum of 50% of the project expenses
  • Demonstrate that the project is based on realistic financial forecasts demonstrating profitability and growth potential
  • Provide current financial statements showing 20% equity after the project and ability to repay
  • Demonstrate that the business and entrepreneur are not in default to the government or its creditors, nor are they the subject of any litigation

grant_eligibility_criteria|who_can_apply

Eligible companies for this grant must be legally constituted and located in the DEL region or plan to be, and they must operate in eligible industries that provide value-added services or products generally intended for businesses (B2B). The proposed project must involve acquiring a business with the intention of taking it over and must demonstrate profitability and growth potential.
  • Legally constituted companies
  • Located in the DEL region or planning to be
  • Operate in eligible industries offering B2B value-added services or products
  • Submitting a project involving the acquisition and takeover of a business
  • Demonstrate profitability and growth potential in financial forecasts

grant_eligibility_criteria|eligible_expenses

Eligible expenses for this grant include costs associated with acquiring a business and professional service fees related to the acquisition transaction.
  • Cost of purchasing shares of the business (voting shares or units)
  • Expenses related to purchasing a business’s assets
  • Professional service fees related to the acquisition transaction

grant_single_labels|criteria

The grant for business acquisition through DEL has specific evaluation and selection criteria to ensure that the project aligns with the purpose of supporting entrepreneurs in acquiring a business with the intention of taking over. These criteria include legal constitution, location, industry eligibility, project viability, and other prerequisites.
  • Be legally constituted
  • Be located in the DEL region or plan to be
  • Operate in an eligible industry and offer value-added services or products generally intended for businesses (B2B)
  • Submit a project that involves acquiring a business with the intention of taking it over and that will help create and/or maintain jobs
  • Own at least 25% of the business and work there full-time
  • Have experience and training that is relevant to the project
  • Submit a project for which government financing and DEL financing combined cover a maximum of 50% of the project expenses
  • Demonstrate that the project is based on realistic financial forecasts demonstrating profitability and growth potential
  • Provide current financial statements showing 20% equity after the project and ability to repay
  • Demonstrate that the business and entrepreneur are not in default to the government or its creditors, nor are they the subject of any litigation

grant_single_labels|register

  • Step 1: Ensure Eligibility
  • Be legally constituted
  • Located in the DEL region or plan to be
  • Operate in an eligible industry (B2B)
  • Own at least 25% of the business and work full-time
  • Submit a project that involves acquiring a business with job creation/maintenance
  • Relevant experience and training
  • Step 2: Gather Key Documents
  • Market valuation report of the business
  • Transfer of ownership agreement
  • Financial statements for the past 3 years and current year
  • Opening balance sheet
  • Projected financial forecasts for the next 2 years
  • Profile of the buyer including personal financial statement and credit report
  • Business model and revenue model or business plan
  • Step 3: Submit Financial Forecasts
  • Submit realistic financial forecasts demonstrating profitability and growth potential
  • Ensure government financing and DEL financing combined cover max 50% of project expenses
  • Provide current financial statements showing 20% equity after the project
  • Step 4: Demonstrate Compliance
  • Ensure no default to the government or creditors
  • Show no ongoing litigation involving the business or entrepreneur
  • Step 5: Submit Application
  • Submit all gathered documents and forecasts
  • Ensure all criteria and implications are met
  • Step 6: Book Appointment with DEL
  • Contact DEL for additional support and guidance through the application process

grant_single_labels|otherInfo

There are some miscellaneous information about the Business Acquisition Loan.
  • Repayment terms offer flexibility with different structuring options available.
  • The loan is repayable at any time without penalty.
  • Collateral might be required depending on the type of financing.
  • The interest rate is competitive and risk-based.
  • Key documents needed include market valuation report and transfer agreements.
  • The business and entrepreneur must not be in default to the government or its creditors.
  • The project should help create and/or maintain jobs.

grant_single_labels|contact

450 645-2335

Apply to this program