DEL — Loan for Growing Collective Enterprises
Longueuil, QC, Canada
Provides up to $150,000 in financing to support the expansion of collective enterprises within the Longueuil region, covering a range of eligible expenses from equipment purchase to marketing costs.
grant_single_labels|summary
grant_single|eligibleFinancing
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- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
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 Loan for Growing Collective Enterprises aims to finance the growth of collective enterprises, enhancing their contribution to the social economy. Eligible activities include capital expenses for equipment, technology purchases, marketing costs, working capital for the first year, and specialized consulting fees. The loan offers financing up to $150,000 with terms of up to 7 years and no collateral required.
grant_single_labels|projects
Yes, certain projects and activities are eligible for this grant, particularly those related to purchasing equipment, marketing costs, and working capital.
- Capital expenses for equipment, machinery, vehicles, incorporation fees, and other related expenses (excluding goodwill)
- Expenses related to purchasing technology, software, patents (excluding R&D expenses)
- Working capital strictly related to operations in the first year of the project
- Marketing and market development expenses
- Specialized consulting fees
grant_single|admissibleProjectsExample
$95,000
Vancouver
Purchase of eco-friendly delivery vehicles for local grocery cooperative
$35,000
Calgary
Implementation of an advanced inventory management system for a local hardware store
$15,000
Ottawa
Marketing campaign for an artisanal bakery to expand customer base
$75,000
Toronto
Acquisition of new pottery kilns for a social enterprise supporting local artisans
$70,000
Edmonton
Purchase of waste management technology for a community recycling initiative
$35,000
Montreal
Hiring a specialized consultant to develop a strategic growth plan for a local farmers' market
grant_single_labels|admissibility
This grant supports the growth of collective enterprises in compliance with the Social Economy Act, operating in the DEL region with specific financial and operational criteria.
- Be legally constituted as per Part III of The Québec Companies Act and operate in compliance with the provisions of the Social Economy Act.
- Have completed the startup and implementation phase and moved on to the growth phase.
- Operate in an eligible industry in a market economy context, excluding organizations accountable to the Québec government or that manage a Québec government program (e.g., day care centres, home support services, housing projects, education services).
- Be located in the DEL region or plan to be.
- Have a majority of permanent jobs that are not subsidized by ad hoc programs.
- Generate independent revenues representing 60% of total revenues.
- Have a net worth of at least 15% of the total asset.
- Submit a project for which government financing and DEL financing combined cover a maximum of 80% of the project expenses.
- Purchase liability assurance for company administrators.
- Be a business member of the Pôle de l’économie sociale de l’agglomération de Longueuil.
- Demonstrate that the business is not in default to the government or its creditors.
grant_eligibility_criteria|who_can_apply
The Loan for Growing Collective Enterprises is available for businesses that have moved beyond the startup phase into growth, operate in an eligible industry within a market economy context, and are compliant with the Social Economy Act. Specific eligibility requirements focus on organizational structure, location, revenue breakdown, and financial standing.
- Legally constituted as per Part III of The Québec Companies Act
- Operate in compliance with the Social Economy Act
- Moved from startup to growth phase
- Operate in an eligible industry within a market economy
- Located in the DEL region or plan to be
- Majority of permanent jobs not subsidized by ad hoc programs
- Generate 60% of total revenues independently
- Net worth of at least 15% of total assets
- Government and DEL financing combined cover a maximum of 80% of project expenses
- Purchase liability assurance for company administrators
- Business member of the Pôle de l’économie sociale de l’agglomération de Longueuil
- Not in default to the government or creditors
grant_eligibility_criteria|who_cannot_apply
Certain types of companies are not eligible for this grant. These include organizations accountable to the Québec government or manage a Québec government program.
- Day care centres
- Home support services
- Housing projects
- Education services
grant_eligibility_criteria|eligible_expenses
The eligible expenses for this loan include a variety of capital, technology, working capital, and marketing costs. Below is a detailed list:
- Capital expenses for equipment, machinery, vehicles, incorporation fees and other related expenses, with the exception of goodwill
- Expenses related to purchasing technology, software or software packages, patents or any other related expenses, with the exception of R&D expenses
- Working capital strictly related to operations in the first year of the project
- Marketing and market development expenses, as well as specialized consulting fees
grant_eligibility_criteria|zone
The eligible geographic zone for this grant is the DEL region.
- Located in the DEL region
- Plan to be located in the DEL region
grant_single_labels|criteria
The evaluation and selection criteria for the Loan for Growing Collective Enterprises include eligibility based on legal constitution, operational phase, industry, location, revenue independence, job subsidies, net worth, financing mix, insurance, and business membership. Key documents such as financial statements, forecasts, CEO profile, and business plan are also required.
- Be legally constituted as per Part III of The Québec Companies Act and operate in compliance with the provisions of the Social Economy Act.
- Have completed the startup and implementation phase and moved on to the growth phase.
- Operate in an eligible industry in a market economy context, excluding organizations accountable to the Québec government or that manage a Québec government program.
- Be located in the DEL region or plan to be.
- Have a majority of permanent jobs that are not subsidized by ad hoc programs.
- Generate independent revenues representing 60% of total revenues.
- Have a net worth of at least 15% of the total asset.
- Submit a project for which government financing and DEL financing combined cover a maximum of 80% of the project expenses.
- Purchase liability assurance for company administrators.
- Be a business member of the Pôle de l’économie sociale de l’agglomération de Longueuil.
- Demonstrate that the business is not in default to the government or its creditors.
- Submit financial statements for the past 3 years and current year.
- Provide projected financial forecasts for the next 2 years of the business.
- Include the profile of the CEO and composition of the Board of Directors.
- Present a business model and revenue model or business plan.
grant_single_labels|register
- Step 1: Legal constitution and compliance
- Ensure your enterprise is legally constituted as per Part III of The Québec Companies Act.
- Operate in compliance with the provisions of the Social Economy Act.
- Step 2: Growth phase verification
- Confirm that your enterprise has completed the startup and implementation phase and has moved on to the growth phase.
- Step 3: Industry and location eligibility
- Verify that your enterprise operates in an eligible industry within a market economy context.
- Ensure your enterprise is located in the DEL region or plans to be.
- Step 4: Revenue and job criteria
- Confirm that the majority of permanent jobs are not subsidized by ad hoc programs.
- Ensure that independent revenues represent 60% of total revenues.
- Step 5: Financial health and worthiness
- Ensure your enterprise has a net worth of at least 15% of the total asset.
- Submit a project where government and DEL financing combined cover a maximum of 80% of the project expenses.
- Purchase liability assurance for company administrators.
- Step 6: Membership and compliance checks
- Become a business member of the Pôle de l’économie sociale de l’agglomération de Longueuil.
- Demonstrate that the business is not in default to the government or its creditors.
- Step 7: Documentation preparation
- Prepare financial statements for the past 3 years and the current year.
- Project financial forecasts for the next 2 years of the business.
- Compile the profile of the CEO and the composition of the Board of Directors.
- Develop a business model and revenue model or a detailed business plan.
- Step 8: Booking an appointment
- Contact DEL to book an appointment for support services and guidance on your financing needs.
grant_single_labels|otherInfo
Here are some additional details about the provided grant:
- Maximum loan amount: $150,000
- Loan term: Repayable over 5 years or up to 7 years under certain conditions
- Principal payments can be postponed for up to 12 months
- No collateral required
- Interest rates are competitive and risk-based
- Eligible expenses include capital expenses, technology purchases, working capital for the first year, and marketing costs
- Main eligibility criteria: Legally constituted, moved beyond startup phase, located in DEL region, not heavily government-subsidized, and meet specific financial health standards
- Required documents: Financial statements, financial forecasts, CEO profile, Board of Directors composition, and business/revenue models
grant_single_labels|contact
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Apply to this program
Loan for Growing Collective Enterprises
This grant provides financial support to collective enterprises in their growth phase within the Longueuil agglomeration. Eligible projects can receive up to $150,000 to finance capital expenses, working capital, marketing, and professional fees.
Detailed Explanation of the Loan for Growing Collective Enterprises
The Loan for Growing Collective Enterprises, offered by Développement économique de l'agglomération de Longueuil (DEL), is designed to support the development and expansion of collective enterprises that significantly contribute to the social economy. This financial aid helps these organizations maximize their impact within the community by providing the necessary financial resources for growth-related expenses.
The loan offers support for a variety of costs associated with expanding a collective enterprise. Eligible expenditures include purchasing equipment, machinery, and technology, as well as covering incorporation fees and other related capital expenses. Additionally, the loan can also be used for working capital strictly related to operations during the first year of the project and marketing costs or specialized consulting fees.
The maximum amount that can be granted through this loan is $150,000. Entrepreneurs can benefit from combining this loan with non-repayable financing that may cover up to 50% of the external professional fees related to the project. The financing is structured as a term loan, repayable over five years, with the possibility of extending to seven years under certain conditions. Furthermore, principal payments can be deferred for up to 12 months, providing more flexibility to the enterprises.
No collateral is required to obtain this type of financing. The interest rate is competitive and based on the risk associated with the specific enterprise’s circumstances.
Main Eligibility Criteria
To be eligible for this loan, collective enterprises must meet several criteria:
- Legal Constitution: The enterprise must be legally constituted as per Part III of The Québec Companies Act and comply with the Social Economy Act's provisions, ensuring it respects social economy principles.
- Business Stage: The enterprise should have completed its startup and implementation phases and be in the growth phase.
- Industry: The enterprise must operate in an eligible industry within a market economy. Organizations accountable to the Québec government or managing Quebec government programs, such as daycare centers, home support services, housing projects, and education services, are excluded.
- Location: The enterprise must be located or plan to be located in the DEL region.
- Employment: A majority of the permanent jobs should not be subsidized by ad hoc programs.
- Revenue Generation: The enterprise should generate independent revenues representing at least 60% of its total revenues.
- Net Worth: The enterprise must have a net worth of at least 15% of its total assets.
- Funding Criteria: The combined government and DEL financing should cover a maximum of 80% of the project expenses.
- Liability Insurance: The enterprise must purchase liability insurance for its administrators.
- Pôle de l'Économie Sociale Membership: The business must be a member of the Pôle de l’économie sociale de l’agglomération de Longueuil.
- Compliance: The enterprise must demonstrate it is not in default to the government or its creditors.
Required Documentation
Applicants must submit specific documents to qualify for the loan:
- Financial statements for the past three years and the current year
- Projected financial forecasts for the next two years of the business
- A profile of the CEO and the composition of the Board of Directors
- A detailed business model and revenue model or a full business plan
Application Process
The application process for the Loan for Growing Collective Enterprises involves a few key steps:
- Initial Consultation: Interested enterprises can book an appointment with DEL to discuss their financing needs and get tailored advice on their project.
- Document Preparation: Applicants need to prepare and gather the required documentation, including financial statements, projections, and business plans.
- Submission: Enterprises submit their application along with the necessary documents to DEL.
- Review and Evaluation: DEL reviews the application, evaluates the enterprise's eligibility, and assesses the project's potential based on the provided documentation.
- Approval and Disbursement: If approved, the loan terms are finalized, and funds are disbursed according to the agreed-upon schedule.
Benefits for Collective Enterprises
This loan provides numerous benefits for collective enterprises:
- Access to Capital: The loan offers up to $150,000, which can significantly aid in purchasing essential equipment, technology, and other capital expenses needed for growth.
- Flexible Repayment Terms: With the possibility to defer principal payments for up to 12 months and terms extending up to seven years, the loan provides manageable repayment schedules.
- No Collateral Required: The loan does not require collateral, making it accessible to enterprises that may not have substantial assets to pledge.
- Complementary Financing Options: The ability to combine the loan with non-repayable financing for professional fees offers additional financial relief.
- Support for Strategic Expenses: Coverage of marketing, market development, and specialized consulting fees helps enterprises invest in strategic growth initiatives.
Strategic Importance of the Loan
The Loan for Growing Collective Enterprises is strategically important for sustaining and expanding the social economy within the Longueuil agglomeration. By supporting collective enterprises' growth, this loan not only ensures the creation and retention of jobs but also enhances the community's socio-economic fabric. Enterprises funded by this loan reinvest their revenues into community-centric activities and services, leading to a ripple effect of economic and social benefits.
This financing mechanism emphasizes the importance of self-sustenance among collective enterprises, ensuring they generate independent revenues and maintain a healthy financial standing. By requiring a majority of non-subsidized permanent jobs, the grant ensures these enterprises provide stable employment opportunities, contributing to the local labor market's health.
Furthermore, the emphasis on purchasing liability insurance for administrators not only protects the enterprise but also instills confidence among stakeholders and members. Ensuring enterprises are members of the Pôle de l’économie sociale de l’agglomération de Longueuil fosters a collaborative and supportive environment where collective enterprises can thrive through shared knowledge, resources, and networking opportunities.
Conclusion
The Loan for Growing Collective Enterprises is a pivotal financial tool designed to aid collective enterprises in the Longueuil agglomeration's growth phase. By providing comprehensive financial support for capital expenses, working capital needs, and marketing, this loan ensures collective enterprises can expand and enhance their contributions to the social economy. With manageable repayment terms and no collateral requirements, the loan is a valuable resource for enterprises committed to creating lasting socio-economic impact. Entrepreneurs interested in this opportunity should engage with DEL to explore how this loan can be tailored to meet their specific growth needs.
For more details and to start your application process, book an appointment with the Développement économique de l'agglomération de Longueuil.