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

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_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

Supporting Businesses Through Financial Opportunities

This grant seeks to provide financial support to businesses engaged in developing projects that align with specific strategic initiatives. The primary aim is to promote innovation and sustainable economic growth within vital sectors across Canada.

In-Depth Overview of the Grant's Objectives and Benefits

The grant serves as an essential catalyst for innovation by offering financial backing to projects that resonate with the strategic goals outlined by the funding organization. Businesses of all scales are invited to apply, with particular encouragement for small and medium-sized enterprises (SMEs) which are instrumental in fostering sustainable economic progress. By focusing on projects that address both current economic challenges and future development potential, this grant creates a foundation for ongoing prosperity.

Applicants are expected to demonstrate comprehensive project planning with a strong emphasis on resource management and the achievement of tangible results. Funding can be allocated to various project needs, such as acquiring technology, undertaking research initiatives, or implementing cutting-edge solutions. Beyond financial assistance, the grant offers recipients access to technical support, educational materials, and a robust network of strategic partnerships designed to enhance project outcomes.

One of the grant's significant advantages is its adaptability, allowing beneficiaries some flexibility to recalibrate their initiatives in response to market dynamics or emerging opportunities. This adaptability ensures that projects remain pertinent and successful from initial implementation through to their conclusion.

Applications are rigorously evaluated against criteria such as innovation, projected impact, feasibility, and alignment with the grant’s strategic imperatives. By maintaining stringent selection standards, the funding body ensures that resources are dedicated to projects with the highest potential for success and societal benefit.

This grant offers a profound opportunity for organizations seeking to innovate and contribute positively to their respective communities. Participants can secure necessary financial support while also playing a pivotal role in the advancement of a more sustainable and thriving economic landscape.