Development Capital — Debt financing
QC, Canada
Loans for large-scale projects in Quebec
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDateNovember 14, 2019
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Gouvernement du Québec
- Investissement Québec (IQ)
grant_single|status
grant_card_status|open
grant_single_labels|preview
Debt financing up to $100 million to acquire a company in Quebec or abroad, for growth and productivity enhancements, and more.
grant_single_labels|terms_and_conditions
This grant program offers various financing modalities designed to support ambitious projects in Quebec through structured and flexible financial instruments. The program leverages a combination of debt and equity solutions to provide substantial capital access for eligible enterprises.
- Equity financing with a minimum investment threshold of $10 million.
- Debt financing available up to $100 million.
- First-ranking secured loans typically arranged in collaboration with other lenders, offering competitive and market-aligned terms.
- Subordinated loans available with or without collateral, with repayment terms and pricing adjusted according to the specific circumstances of the business, under prevailing market conditions.
- Convertible debt with conversion, repayment, and pricing conditions tailored to the business's situation and consistent with market standards.
grant_single_labels|projects
This grant is designed to support various ambitious business initiatives that contribute to economic growth and sustainability in Quebec. The eligible projects include but are not limited to acquisitions, productivity improvements, and ownership structuring activities.
- Acquisition of an enterprise in Quebec or abroad.
- Growth or productivity improvement projects, such as expansion or equipment modernization.
- Partial or total buyout of shares to ensure the continuity of Quebec ownership.
grant_single|admissibleProjectsExample
$ 33,000,000
Partial buyout of shares in an education service company for sustainability
$ 79,500,000
Acquisition of a tech startup to enhance software development capabilities
$ 70,000,000
Expansion of renewable energy facilities by GreenLeaf Co-op
$ 27,000,000
Modernization of manufacturing equipment for a factory
$ 54,500,000
Acquisition of a food processing company to diversify product lines
$ 18,500,000
Expansion of a healthcare cooperative to include new diagnostic equipment
grant_single_labels|admissibility
Eligibility for this grant is determined by specific requirements related to the sector of the company applying.
- All companies in Quebec are eligible except those in the following sectors:
- Agricultural operations, unless they are not eligible for programs by La Financière agricole du Québec.
- Finance and insurance.
- Real estate, with some activities being excluded.
- Retail and activities similar to retail.
- Other sectors mainly serving individual customers, except the tourism sector.
grant_eligibility_criteria|who_can_apply
All businesses in Quebec can apply, except those in the following sectors:- Agricultural operations- Finance and insurance- Real estate (certain activities excluded)- Retail and activities similar to retail- Other sectors primarily serving individual customers, excluding the tourism sector Companies not eligible for La Financière agricole du Québec programs may still receive funding from Investissement Québec.
grant_eligibility_criteria|who_cannot_apply
This grant excludes certain companies from applying based on their industry or primary activities. These restrictions are intended to target key sectors that align with the grant's economic development mission.
- Agricultural operations, with some exceptions.
- Finance and insurance sectors.
- Real estate activities (certain activities within this sector are excluded).
- Retail and activities analogous to retail.
- Other sectors where the customer base consists predominantly of individuals, except for the tourism sector.
grant_eligibility_criteria|eligible_expenses
This grant supports projects aimed at enhancing the economic sustainability and growth of businesses in Quebec. Eligible projects include strategic acquisitions, productivity improvements, and actions ensuring business longevity within the province.
- Acquisition of a company in Quebec or abroad.
- Growth or improvement of productivity, such as expansion and equipment modernization.
- Partial or total buyback of shares to ensure the continuity of Quebec-based ownership.
grant_eligibility_criteria|zone
This grant targets companies established in specific regions to support regional economic development. The eligible geographical area for companies applying for this grant is the Province of Quebec.
- Companies located within the Province of Quebec, Canada.
grant_single_labels|criteria
Yes, there are evaluation and selection criteria for this grant. All companies in Quebec except those in specific sectors are eligible, with a focus on high-potential growth and innovative sectors.
- Companies in Quebec are eligible, excluding those in:
- Agricultural exploitation
- Finance and insurance
- Real estate (certain activities excluded)
- Retail sales and comparable activities
- Other sectors with a majority of individual clientele, except for tourism
- Focus on sectors such as:
- Food processing
- Aerospace
- Information and communication technologies
- Advanced applied technologies
- Clean energy
- Life sciences
- Innovative manufacturing
- Vision centered on long-term economic development
- Goals to ensure the sustainability of Quebec businesses
grant_single_labels|register
- Step 1: Eligibility Assessment
- Review the sectors eligible for funding and ensure your business aligns with the economic development goals of Quebec.
- Assess if your project fits within the types of eligible projects, such as acquisition or expansion endeavors.
- Step 2: Contact Investment Quebec
- Reach out to Investment Quebec's major accounts team to discuss your project and explore suitable financing options.
- Provide a brief overview of your business and the scope of your project.
- Step 3: Prepare Application Materials
- Compile necessary documentation such as financial statements, a detailed business plan, and any other supporting materials requested by Investment Quebec.
- Ensure your business plan clearly outlines the investment needs and expected outcomes.
- Step 4: Submit Proposal
- Submit your complete application package to Investment Quebec, as advised by the team handling your account.
- Ensure all information is accurate and complete to facilitate the review process.
- Step 5: Application Review and Feedback
- Investment Quebec will review your application and provide feedback or request additional information if required.
- Stay in contact with the team to address any queries and provide supplementary documents promptly.
- Step 6: Final Decision
- Await a decision from Investment Quebec regarding the funding of your project.
- Receive notification of the outcome and next steps if your application is successful.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- Investissement Québec offers flexible financing solutions through both equity and debt financing tailored to your business's specific needs and market conditions.
- They have a strong financial capacity and offer a long-term global perspective to support ambitious business projects.
- Their portfolio focuses on innovative companies with high growth potential, especially in sectors like aerospace, ICT, advanced technologies, clean energy, life sciences, and innovative manufacturing.
- Investissement Québec brings added value through a wide network of contacts and complementary services with other market players.
- Financing packages start at a minimum of $10 million, which can go up to $100 million for debt financing.
Apply to this program
Investment Quebec's Capital Development Initiative: Empowering Growth
This Capital Development Grant offers strategic financial solutions such as equity, debt, and hybrid financing, fostering economic expansion for businesses within Quebec. It prioritizes growth-oriented projects that enhance productivity and ensure the longevity of Quebec-based enterprises.
In-Depth Exploration of Capital Development Financing Options
The Capital Development Initiative by Investment Quebec stands as a pivotal financial instrument tailored to support enterprises aspiring towards substantial growth and increased productivity within varied industry sectors. Targeted primarily at established businesses operating within Quebec, this grant offers a robust suite of financial solutions designed to meet the unique needs of each venture. Whether an enterprise seeks equity investment, debt acquisition, or a hybrid approach, the initiative's primary goal is to provide the requisite financial leverage to realize ambitious projects.
Investment Quebec's approach to funding is characterized by flexibility and market-aligned conditions, ensuring that each financial solution complements the specific circumstances and industry standards of the participating businesses. With a minimum equity investment starting at $10 million, enterprises can secure significant capital to drive expansive projects. This can include the acquisition of existing enterprises both domestically and internationally, thus facilitating strategic growth and diversification opportunities.
Debt financing options under this initiative can reach amounts up to $100 million, providing considerable financial support for businesses looking to finance strategic expansions or modernize outdated equipment. Such investments are vital for companies aiming to enhance their operational efficiency and maintain competitive edges in their respective markets.
A unique aspect of this grant is its inclusion of first-ranking secured loans, often in collaboration with other financial institutions. This aspect guarantees competitive terms aligned with current market conditions, giving enterprises a firm foothold in financial planning and risk management. Additionally, the offering of subordinated loans, with or without collateral, is adaptable to company-specific repayment conditions, thus ensuring achievable financial commitments.
Moreover, convertible debt solutions present an innovative financing avenue, allowing enterprises to align conversion terms with their growth stage and strategic goals. This versatility not only underscores the initiative's commitment to supporting the sustainable growth of Quebec enterprises but also positions businesses to navigate complex market dynamics efficiently.
This comprehensive suite of funding solutions offered by the Capital Development Initiative makes it an ideal choice for facilitating high-impact developments. The grant caters to industries that are crucial to Quebec's economic landscape, such as aerospace, ICT, advanced manufacturing, and clean energy sectors, among others. By prioritizing these key areas, Investment Quebec demonstrates its vision for a future-ready provincial economy that thrives on innovation and sustainability.
The intrinsic value of this grant lies in its dual emphasis on immediate project funding and the strategic positioning of enterprises for long-term success. By fostering innovation and resilience, the Capital Development Initiative not only enhances the economic fabric of Quebec but also contributes significantly to the province's standing as a hub of business excellence and innovation.
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