DEL — Working Capital Loan
Longueuil, QC, Canada
Financing to cover business operating costs for one year, including expenses related to hiring key employees, with flexible repayment options and competitive interest rates.
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 Working Capital Loan provides a maximum of $150,000 to cover business operating costs for one year, including expenses related to hiring key employees. Eligible activities include maintaining steady working capital and projects that create or maintain jobs, excluding R&D expenses. Applicants must be legally constituted, located in the DEL region, and demonstrate profitability and growth potential.
grant_single_labels|projects
Eligible projects for the Working Capital Loan cover business operating costs for the first year, mainly focusing on activities that support hiring, job creation or maintenance, and profitability. The project must be located in the DEL region or plan to be and demonstrate realistic financial forecasts.
- Hiring key employees
- Creating and/or maintaining jobs
- Covers 50% of external professional fees
grant_single|admissibleProjectsExample
$150,000
Montreal
Hiring a management team for a new branch
$150,000
Halifax
Maintaining existing jobs and hiring three more in a community bakery
$150,000
Toronto
Hiring five employees for a customer support center
$150,000
Calgary
Creating seven new jobs in a financial consulting firm
$150,000
Ottawa
Creating 10 new entry-level positions in a tech startup
$150,000
Vancouver
Expanding our marketing team with three new hires
grant_single_labels|admissibility
This grant is aimed at legally constituted businesses located in the DEL region that operate in eligible industries, offering value-added services or products intended for businesses. Applicants must demonstrate realistic financial forecasts, the creation or maintenance of jobs, and compliance with specific financial and legal criteria.
- 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 will create and/or maintain jobs
- 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 showing profitability and growth potential
- Provide current financial statements showing 20% equity after the project and the 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
Yes, there are eligible types of companies for this grant offered by DEL - Développement économique de l'agglomération de Longueuil. To qualify, a company must be legally constituted, operate in an eligible industry, and offer value-added services or products generally intended for businesses (B2B).
- Legally constituted
- Located in the DEL region or planning to be
- Operating in an eligible industry
- Offering value-added services or products intended for businesses (B2B)
- Submitting a project that will create and/or maintain jobs
- Project for which government financing and DEL financing combined cover a maximum of 50% of the project expenses
- Demonstrate project profitability and growth potential with realistic financial forecasts
- Provide current financial statements showing 20% equity after the project and the ability to repay
- Business and entrepreneur must not be in default to the government or its creditors nor subject to any litigation
grant_eligibility_criteria|who_cannot_apply
The grant context does not explicitly mention any specific types of companies that are not eligible for the grant. Therefore, there are no stated exclusions for ineligible companies in the provided information.
grant_eligibility_criteria|eligible_expenses
Eligible expenses for this grant include working capital related to the first year of the project, excluding R&D expenses.
- Working capital for the first year
- Excludes R&D expenses
grant_eligibility_criteria|zone
The eligible geographic zones for this grant are regions within the DEL (Développement économique de l'agglomération de Longueuil) area.
- Boucherville
- Delson
- Longueuil
- Saint-Bruno-de-Montarville
- Saint-Lambert
- Brossard
grant_single_labels|criteria
Yes, there are evaluation and selection criteria for this grant that need to be adhered to. The criteria ensure the business is located in the DEL region, financially stable, and capable of creating or maintaining jobs while offering value-added services or products intended for businesses (B2B).
- 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 will create and/or maintain jobs
- 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 showing profitability and growth potential
- Provide current financial statements showing 20% equity after the project and the 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
- Verify that the business is legally constituted
- Confirm that the business is located in the DEL region or plans to be
- Ensure operations are in an eligible industry and provide value-added B2B services or products
- Prepare a project that will create and/or maintain jobs
- Ensure the project combines financing from government and DEL to cover a maximum of 50% of project expenses
- Demonstrate that the project is based on realistic financial forecasts showing profitability and growth potential
- Have current financial statements showing 20% equity after the project and the ability to repay
- Ensure the business and entrepreneur are not in default to the government or creditors, nor involved in any litigation
- Step 2: Gather Required Documents
- Financial statements for the past 3 years and current year
- Projected financial forecasts for the next 2 years
- Business model and revenue model or business plan
- Entrepreneur’s personal financial statement and credit report
- Step 3: Submit Application
- Prepare the application with all required documents
- Submit the application to DEL
- Step 4: Follow Up
- Monitor the application process
- Respond promptly to any additional information requests from DEL
- Step 5: Receive Financing
- Review and sign the financing agreement if approved
- Ensure compliance with the terms and conditions of the loan
- Manage and utilize the funds according to the submitted project plan
- Step 6: Post-Financing Requirements
- Provide regular updates and financial reports as required by DEL
- Maintain communication with DEL regarding the progress and impact of the project
- Ensure timely repayments according to the agreed schedule
grant_single_labels|otherInfo
The Working Capital Loan provides up to $150,000 for operating costs and can be combined with other financing options, featuring favorable repayment terms and eligibility criteria aiming to support business growth and job creation.
- Max amount: $150,000
- Can cover 50% of external professional fees for the project
- Repayable at any time without penalty
- Competitive and risk-based interest rates
- Requires submission of key documents like financial statements and business plans
grant_single_labels|contact
450
Apply to this program
Working Capital Loan
The Working Capital Loan offered by the Développement économique de l'agglomération de Longueuil (DEL) provides up to $150,000 to support business operating costs for one year, with competitive and risk-based interest rates. This loan is designed to help businesses in the Longueuil region maintain a steady stream of working capital while creating or maintaining jobs.
Understanding the Working Capital Loan by DEL: A Comprehensive Guide
The Développement économique de l'agglomération de Longueuil (DEL) offers a variety of financial support options designed to foster business growth and economic development within the Longueuil region. One such program is the Working Capital Loan, which aims to provide businesses with the necessary funds to cover operating costs and ensure smooth financial operations for up to one year. In this comprehensive guide, we will explore every aspect of the Working Capital Loan, highlighting its benefits, eligibility criteria, application process, and how it can contribute to the growth and stability of your business.
1. Overview of the Working Capital Loan
The Working Capital Loan is specifically designed to help businesses manage their day-to-day operating expenses, ensuring that they maintain a healthy cash flow. The loan can cover various operating costs, including the expenses related to hiring key employees. With a maximum amount of $150,000, this loan offers ample support to cover essential business activities. The competitive and risk-based interest rates make it an attractive option for businesses seeking financial stability.
2. Types of Financing Available
DEL offers two primary types of financing under the Working Capital Loan:
- Term or Equity Loan: This type of loan is repayable over 5 years, with the possibility of extending up to 7 years under certain conditions. Additionally, businesses can postpone principal payments for up to 12 months, and in some cases, up to 24 months. This flexibility allows businesses to manage their repayments more effectively.
- Debenture: This option matures between 3 to 5 years, with the possibility of extending up to 7 years under specific conditions. The debenture may also be convertible and backed by stock options. This type of financing provides businesses with an alternative structure that can be tailored to their specific needs.
It is worth noting that collateral may be required for both types of financing, and the loans are repayable at any time without penalty, offering businesses greater flexibility and control over their financial commitments.
3. Eligible Expenses
The Working Capital Loan covers a range of eligible expenses related to the first year of the project. These expenses include various operating costs but explicitly exclude research and development (R&D) expenses. This focus ensures that businesses can manage their immediate financial needs without diverting funds to long-term projects that fall outside the loan's scope.
4. Main Eligibility Criteria
To qualify for the Working Capital Loan, businesses must meet several key criteria:
- Legal Constitution: The business must be legally constituted to be eligible for the loan.
- Location: The business must be located in the DEL region or have plans to establish operations within the region.
- Industry and Services: The business must operate in an eligible industry and offer value-added services or products generally intended for other businesses (B2B).
- Job Creation and Maintenance: The project must demonstrate potential for creating and/or maintaining jobs.
- Combined Financing: The combined total of government financing and DEL financing must cover a maximum of 50% of the project expenses.
- Realistic Financial Forecasts: The project must be based on realistic financial forecasts that show profitability and growth potential.
- Financial Statements: The business must provide current financial statements demonstrating 20% equity after the project and the ability to repay the loan.
- Compliance: The business and the entrepreneur must not be in default to the government or any creditors and must not be involved in any ongoing litigation.
5. Required Documentation
To ensure a smooth application process, businesses need to submit several key documents:
- Financial Statements: Financial statements for the past three years and the current year are required.
- Projected Financial Forecasts: Businesses must provide financial forecasts for the next two years.
- Business Model: Details of the business model and revenue model or a comprehensive business plan should be submitted.
- Personal Financial Statement and Credit Report: The entrepreneur's personal financial statement and credit report are necessary to assess creditworthiness.
6. Application and Approval Process
The application process for the Working Capital Loan involves several steps designed to ensure that the business meets all eligibility criteria and provides the necessary documentation. Here's a step-by-step guide to the application process:
- Initial Consultation: Businesses are encouraged to book an appointment with DEL to discuss their financing needs and assess the feasibility of their project.
- Submission of Documentation: Applicants must provide all required documents, including financial statements, projected financial forecasts, and a detailed business plan.
- Review and Assessment: DEL will review the application and assess the project's viability based on the provided documentation. This includes evaluating the financial health of the business, the entrepreneur's creditworthiness, and the project's potential for job creation and growth.
- Approval and Disbursement: If the application is approved, the loan amount will be disbursed to the business. The terms of the loan, including the repayment schedule and interest rates, will be clearly outlined in the loan agreement.
7. Benefits of the Working Capital Loan
The Working Capital Loan offers several key benefits to businesses:
- Improved Cash Flow: By covering essential operating costs, the loan helps businesses maintain a steady cash flow, ensuring smooth day-to-day operations.
- Competitive Interest Rates: The loan's competitive and risk-based interest rates provide a cost-effective financing solution.
- Flexibility: The availability of different financing types and the option to postpone principal payments provide businesses with flexibility in managing their financial commitments.
- Support for Growth: By ensuring that businesses can cover their operating expenses, the loan supports growth and scalability, allowing businesses to focus on expanding their operations and increasing profitability.
- Job Creation and Maintenance: The loan encourages businesses to create and maintain jobs, contributing to the economic development of the Longueuil region.
8. Conclusion
The Working Capital Loan by DEL is a valuable financial tool for businesses in the Longueuil region, providing necessary funds to cover operating costs and maintain a healthy cash flow. With flexible repayment options, competitive interest rates, and a focus on job creation, this loan program supports businesses in achieving their growth potential while contributing to the region's economic development. For businesses seeking to improve their financial stability and ensure sustainable growth, the Working Capital Loan offers an ideal solution.
If you are interested in applying for the Working Capital Loan or need more information, please book an appointment with DEL. Our services are available free of charge, and our team is ready to assist you in finding the right financing solution for your business needs.