Development Capital — Equity financing
QC, Canada
Equity for large-scale projects in Quebec
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateNovember 14, 2019
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Manufacturing
grant_single|grantors
- Gouvernement du Québec
- Investissement Québec (IQ)
grant_single|status
grant_card_status|open
grant_single_labels|preview
Developmental capital of $5 million or more (20% to 30% of shares) to acquire a company in Quebec or abroad, for growth and productivity enhancements, and more.
grant_single_labels|projects
There are several projects and activities eligible for this grant.
- Total or partial share redemption to maintain Québec ownership
- Acquisition of a company in Québec or abroad
- Growth or productivity enhancement (expansion, equipment modernization)
grant_single|admissibleProjectsExample
$1,300,000
Sherbrooke
Enhancing productivity with new packaging machinery in a food processing cooperative
$1,250,000
Montreal
Expansion of a tech startup's operations to a new office
$1,500,000
Québec
Acquisition of a manufacturing company to increase production capacity
$1,550,000
Laval
Partial share redemption to maintain Québec ownership of a transport company
$1,400,000
Toronto
Acquisition of a digital marketing agency for business expansion
$1,350,000
Drummondville
Modernization of equipment in a cooperative farm
grant_single_labels|admissibility
All Québec businesses are eligible for this grant, except for companies operating in certain specified industries.
- Agriculture (with exceptions for companies ineligible for La Financière agricole du Québec programs)
- Finance and insurance
- Real estate (certain activities are excluded)
- Retail sales and comparable activities
- Other industries where clients are primarily individuals, except for tourism
grant_eligibility_criteria|who_can_apply
All Québec businesses, except those in specific industries, are eligible for this grant. These industries include agriculture, finance and insurance, real estate, retail sales, and other industries primarily catering to individuals (with an exception for tourism).
- Total or partial share redemption to maintain Québec ownership
- Acquisition of a company in Québec or abroad
- Growth or productivity enhancement (expansion, equipment modernization)
grant_eligibility_criteria|who_cannot_apply
Certain types of companies are not eligible for this grant.
- Agriculture*
- Finance and insurance
- Real estate (certain activities are excluded)
- Retail sales and comparable activities
- Other industries where clients are primarily individuals (except for tourism)
grant_eligibility_criteria|eligible_expenses
Eligible expenses for this grant include various financing needs aimed at specific projects to support business growth and retention in Québec.
- Total or partial share redemption to maintain Québec ownership
- Acquisition of a company in Québec or abroad
- Growth or productivity enhancement (expansion, equipment modernization)
grant_eligibility_criteria|zone
All businesses located in Québec are eligible for this grant, except for specific exclusions.
- Agriculture (except those ineligible for La Financière agricole du Québec programs)
- Finance and insurance
- Real estate (certain activities are excluded)
- Retail sales and comparable activities
- Other industries where clients are primarily individuals, except for tourism
grant_single_labels|register
- Step 1: Verify Eligibility
- Ensure your business operates in Québec.
- Confirm that your business does not fall into the excluded industries (agriculture, finance and insurance, real estate (certain activities are excluded), retail sales, or industries primarily serving individuals, except tourism).
- Check if your business qualifies for La Financière agricole du Québec programs, if applicable.
- Step 2: Determine Financing Needs
- Identify the type of financing required (equity financing, debt financing, senior secured loan, or subordinated loan).
- Calculate the amount needed for your project (equity financing starts at $5M; debt financing up to $100M).
- Step 3: Prepare Documentation
- Gather detailed information about your business, including financial statements, business plans, and projected financials.
- Prepare a thorough project proposal covering the specifics of the project (e.g., acquisition, expansion, equipment modernization).
- Step 4: Contact Investissement Québec
- Reach out to Investissement Québec to discuss your financing needs and project details.
- Use the contact information provided (1 844 IQINFOS or 1 844 474-6367, or visit INVESTQUEBEC.COM).
- Step 5: Submit Application
- Submit the required documents and project proposal to Investissement Québec.
- Ensure all documentation is complete and accurately represents your business and project.
- Step 6: Review and Evaluation
- Investissement Québec will review your application and evaluate the feasibility of the project.
- Be prepared to provide additional information or clarification if requested.
- Step 7: Await Decision
- Wait for Investissement Québec's decision on your application.
- If approved, review the terms and conditions offered.
- Step 8: Finalize Agreement
- Work with Investissement Québec to finalize the financing agreement.
- Sign the necessary documents and agree to the terms and conditions.
- Step 9: Project Implementation
- Once funding is received, begin the implementation of your project as outlined in your proposal.
- Provide regular updates and comply with any reporting requirements set by Investissement Québec.
grant_single_labels|otherInfo
Investissement Québec offers flexible financing solutions for Québec businesses to enhance growth and productivity.
- Equity investment of $5 million or more, generally between 20% and 30% of shares.
- Debt financing up to $100 million.
- Senior secured loans generally with other lenders.
- Subordinated loans with or without guarantees.
- Eligible projects include share redemption, company acquisition, and equipment upgrades.
- Exclusions include businesses in agriculture, finance and insurance, real estate, retail sales, and activities targeting primarily individuals (except tourism).
- Companies ineligible for La Financière agricole du Québec may qualify.
grant_single_labels|contact
1-844-474-6367
Apply to this program
Summary of the Investissement Québec Financing Grant
Investissement Québec provides tailored financing solutions for businesses in Québec, including equity investments starting at $5 million and debt financing up to $100 million. Eligible projects include share redemptions, company acquisitions, and growth or productivity enhancements.
Detailed Guide on the Investissement Québec Financing Grant
The Investissement Québec Financing Grant offers a range of bespoke financial solutions designed to support businesses at various stages of their development. Whether you need equity investment, a senior secured loan, or a subordinated loan, Investissement Québec can provide the necessary financing to realize your ambitious projects. Below is an in-depth look at the grant's criteria, eligibility, and benefits.
1. Types of Financing Solutions
Investissement Québec's financing options offer flexibility to meet the unique needs of businesses, and these options are often combined to create a custom package. The primary solutions include:
Equity Financing
Equity investment from Investissement Québec starts at $5 million, typically ranging between 20% and 30% of the company's shares. This option is ideal for businesses looking to expand their equity base without taking on additional debt. It provides significant capital injections that can be used for various projects such as acquisitions or large-scale expansions.
Debt Financing
Debt financing is offered in two main forms, each with tailored conditions based on the company's specific situation: 1. **Senior Secured Loan**: Usually provided in conjunction with other lenders, this loan comes with competitive, market-based terms and conditions. It is secured by assets and is often used for substantial projects that require large capital expenditure. 2. **Subordinated Loan**: This type of loan can be with or without a guarantee. The repayment terms and rates are customized to the business’s situation and adhere to market conditions. Subordinated loans are ranked below senior loans in terms of claim priority but offer flexible terms.
2. Eligible Projects
Various types of projects qualify for financing under this program, provided they align with Investissement Québec's strategic priorities. Eligible projects include:
Total or Partial Share Redemption
This type of project involves buying back shares to maintain or transfer ownership within Québec. It is suitable for businesses looking to consolidate ownership or ensure that the company's control remains within the province.
Acquisition of a Company
Investissement Québec supports both domestic and international acquisitions, providing necessary capital to expand business operations through strategic acquisitions. This could involve acquiring new technologies, expanding market reach, or integrating vertically or horizontally within the industry.
Growth or Productivity Enhancements
Projects aiming to expand business operations, upgrade equipment, or enhance productivity are also eligible. These could include the expansion of manufacturing facilities, modernization of existing equipment, or other initiatives aimed at enhancing operational efficiency.
3. Eligibility Criteria
To qualify for funding, businesses need to meet specific criteria. Almost all Québec-based businesses are eligible for this financing except those that operate in certain excluded sectors. The excluded industries include: - Agriculture, unless ineligible for La Financière agricole du Québec programs - Finance and insurance sectors - Real estate, with certain activities excluded - Retail sales and comparable activities where customers are primarily individuals, excluding tourism-related businesses By focusing on strategic sectors, Investissement Québec aims to spur economic growth and innovation within the province.
4. Benefits of the Investissement Québec Financing Grant
Investissement Québec’s financial solutions offer numerous benefits tailored to foster the economic growth and sustainability of businesses:
Seasoned Experts
A team of experienced professionals will work collaboratively with your business to tailor financial solutions that best meet your needs. Their deep understanding of the market dynamics and economic trends ensures that the proposed financing solutions are best suited for your growth strategy.
Extensive Financial Capacity
With substantial financial backing, Investissement Québec has the capacity to provide significant capital for large-scale projects. Whether you require equity investment or various types of loans, the organization has the resources to support your ambitions.
Comprehensive, Long-term Vision
Investissement Québec is committed to fostering long-term relationships with businesses. Their financing solutions are not just about immediate financial needs but are designed to support sustainable growth. This comprehensive approach ensures that your business can pivot and grow while maintaining financial health.
5. Application Process
The application process for financing through Investissement Québec involves several steps to ensure that both the company and the project meet the necessary criteria:
Initial Consultation
An initial consultation with Investissement Québec representatives helps determine your specific needs and eligibility. During this consultation, experts will assess the feasibility of your project and advise on the best financial products.
Detailed Proposal Submission
Following the initial consultation, you will be required to submit a detailed proposal outlining the scope of the project, financial statements, and other relevant documentation. This proposal will include project objectives, expected outcomes, and how the financing will be utilized.
Due Diligence
Investissement Québec will conduct a thorough due diligence process to evaluate the proposal. This includes reviewing your business model, financial health, and the project's potential for success. It ensures that the financing provided aligns with both the organization’s and the company’s objectives.
Approval and Agreement
Once the proposal passes the due diligence phase, it will move on to the approval stage. Upon approval, detailed terms and conditions of the financing will be discussed and agreed upon, followed by the formalization of the financing agreement.
6. Support and Follow-Up
Investissement Québec's support doesn't end with the disbursement of funds. They offer ongoing support and follow-up to ensure that the financed projects achieve their intended outcomes. Periodic reviews and consultations help in tracking progress and making necessary adjustments to the project strategy.
Conclusion
Investissement Québec’s financing solutions provide a robust framework for businesses in Québec to achieve their growth, acquisition, and productivity enhancement objectives. Whether through equity investment or specialized loan products, Investissement Québec offers the flexibility and expertise needed to support ambitious projects.