How much funding can be received?

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

This loan supports entrepreneurs acquiring at least 25% of an existing business with the intention to take over and manage the business within five years.

Cost of purchasing shares of the business making up at least 25% of the value
Expenses related to purchasing a business's assets
Professional service fees related to the acquisition transaction

grant_single|admissibleProjectsExample

$75,000

Longueuil

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

$88,000

Longueuil

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

$115,000

Longueuil

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

$90,000

Longueuil

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

$130,000

Longueuil

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

$65,000

Longueuil

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_eligibility_criteria|zone

The eligible geographic zone for this grant is limited to businesses located in or planning to be located in the DEL region.

Businesses must be located in the DEL region
Businesses planning to be located in the DEL region are also eligible

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

DEL Business Acquisition Loan Summary

The DEL Business Acquisition Loan aims to support entrepreneurs in the Longueuil agglomeration who intend to acquire and take over existing businesses, providing up to $150,000 in financing under various conditions. This loan facilitates seamless transitions of business ownership, ensuring job creation and sustainability in the region.

Complete Guide to the DEL Business Acquisition Loan

The Développement économique de l'agglomération de Longueuil (DEL) offers a comprehensive Business Acquisition Loan for aspiring entrepreneurs seeking to purchase and manage existing businesses. This loan program is meticulously designed to ease the financial burden of acquiring a business, providing necessary leverage to ensure continuity, profitability, and growth in the Longueuil agglomeration. Below, we delve into every aspect of the DEL Business Acquisition Loan to give you a thorough understanding of its benefits, eligibility criteria, application process, and more.

Overview of DEL Business Acquisition Loan

The DEL Business Acquisition Loan provides financial assistance to entrepreneurs looking to acquire a minimum of 25% of an existing business’s value with the intention of taking over its management and ownership within five years. The loan aims to promote local economic development by ensuring that businesses remain functional and viable under new ownership, preserving jobs, and fostering growth.

Key Features of the Loan

Maximum Amount: $150,000
Eligible Financing Types:
Term or equity loan: Repayable over 5 years, with possible extensions up to 7 years, and a potential 12-month principal payment deferral.
Excess Cash Flow loan: Principal repayable annually based on a percentage of excess cash flow, up to 10 years.
Debenture: Maturing in 3 to 5 years, extendable up to 7 years, potentially convertible, and backed by share options.
Interest Rates: Competitive and risk-based.
Repayment Flexibility: Loans are repayable at any time without penalty.
Collateral: May be required based on the loan type and amount.
Combination with Other Financing: The loan can be combined with conditionally non-repayable financing covering 50% of external professional fees related to the acquisition.

Eligible Expenses

Cost of purchasing shares or units (voting shares) representing at least 25% of the existing business.
Expenses incurred in purchasing the business's assets.
Professional service fees related to the acquisition such as legal, accounting, and consultancy fees.

Main Eligibility Criteria

To be eligible for the DEL Business Acquisition Loan, applicants must meet the following criteria:

Legal Constitution: The business must be legally constituted.
Geographic Requirement: The business must be located in the DEL region or plan to be located there.
Industry Criteria: The business should operate in an eligible industry and offer value-added services or products generally intended for other businesses (B2B).
Ownership and Employment: The entrepreneur must aim to acquire at least 25% ownership of the business and commit to working full-time in the business.
Experience and Training: The entrepreneur must possess relevant experience and training pertinent to the business acquisition project.
Financial Viability: The project must be backed by realistic financial forecasts demonstrating profitability and growth potential.
Financial Projections and Conditions: Combined government and DEL financing should cover a maximum of 50% of the project expenses, and post-project financial statements should reflect 20% equity and the capacity for repayment.
Compliance: The business and entrepreneur must not be in default to government or creditors and should not be involved in any litigation.

Necessary Documentation

Applicants must provide detailed documentation to support their loan application. Key documents include:

Market valuation report of the business to be acquired.
Transfer of ownership agreement and agreement to sell at least 25% of the business.
Management and ownership transfer plan illustrating the intention to take full control within 5 years.
Financial statements for the past 3 years and for the current year.
Opening balance sheet.
Projected financial forecasts for the next 2 years.
Profile of the buyer, including personal financial statements and credit report.
Business model and revenue model or business plan.
Any other documents relevant to analyzing the transfer project.

Application Process

The application process for the DEL Business Acquisition Loan is straightforward yet thorough, ensuring that only viable and well-prepared projects receive funding. Here’s a step-by-step guide to the process:

Preliminary Assessment: Schedule an appointment with a DEL representative to discuss your project and assess preliminary eligibility.
Document Preparation: Gather all required documentation including business valuations, financial statements, and transfer plans.
Submission: Submit your complete application package to DEL for review.
Review and Analysis: DEL will conduct a detailed review and analysis of your application, assessing the business’s viability and your capacity to manage and grow the business.
Decision: Upon successful evaluation, DEL will provide a loan offer outlining the terms and conditions of the financing.
Acceptance and Agreement: If you accept the loan offer, finalize the agreement with DEL, including any collateral requirements and commitment to the financing terms.
Disbursement: Upon execution of the agreement, funds will be disbursed as per the loan conditions.

Benefits of the DEL Business Acquisition Loan

The DEL Business Acquisition Loan provides numerous benefits for entrepreneurs and the local economy:

Financial Leverage: Access to substantial funds to acquire a significant portion of an existing business, facilitating smoother transition and continuity.
Flexibility: Multiple financing options tailored to the entrepreneur's cash flow and repayment capacity, reducing the financial strain during the initial years of acquisition.
Professional Support: Coverage of professional service costs ensures that the acquisition process is handled by experts, mitigating risks and enhancing success.
Economic Development: By supporting business acquisitions, the loan helps maintain and create jobs, contributing to the overall economic growth of the Longueuil region.

Conclusion

The DEL Business Acquisition Loan is a critical resource for entrepreneurs aiming to take over existing businesses in the Longueuil agglomeration. With its strategic financing options, eligibility criteria ensuring sound investments, and professional support, this loan not only empowers entrepreneurs but also drives regional economic stability and growth. Aspiring business owners are encouraged to leverage this opportunity to achieve their entrepreneurial dreams while contributing to the local economy.