DEL — Working Capital Loan
At a glance
- Max. $150,000
- Up to 50% of project cost
- Open Date : July 9, 2024
- All industries
Overview
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.
Activities funded
Eligibility
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
Who is eligible?
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
Who is not eligible
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.
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
Selection 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
How to apply
Check Eligibility
- Verify that the company is legally established
- Confirm that the company is located in the DEL region or plans to be
- Ensure that the operations are in an eligible sector and provide value-added B2B services or products
- Prepare a project that will create and/or maintain jobs
- Ensure that the project combines government funding and DEL to cover a maximum of 50% of the 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 that the company and the entrepreneur are not in default to the government or creditors, nor involved in any litigation
Gather the Required Documents
- Financial statements for the last 3 years and the current year
- Projected financial forecasts for the next 2 years
- Business model and revenue model or business plan
- Personal financial statement of the entrepreneur and credit report
Submit the Application
- Prepare the application with all the required documents
- Submit the application to DEL
Follow-up
- Monitor the application process
- Respond promptly to any requests for additional information from DEL
Receive the Funding
- Examine and sign the financing contract if approved
- Make sure to comply with the terms and conditions of the loan
- Manage and use the funds according to the submitted project plan
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 reimbursements according to the agreed schedule
Additional information
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