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|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateJuly 9, 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