Development Capital — Equity financing
Last Update: January 25, 2025
QC, Canada
Equity for large-scale projects in Quebec
Development Capital — Equity financing at a glance
Eligible Funding
- Min. $5,000,000
- Up to 30% of project cost
Timeline
- Continuous Intakes
Financing Type
Loans and Capital investments
Eligible Industries
- Manufacturing
Grant Providers
- Gouvernement du Québec
- Investissement Québec (IQ)
Status
Open
Overview of the Development Capital — Equity financing program
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.
Financing terms and conditions
The Development Capital — Equity financing program provides diverse options to support SMBs and large corporations in enhancing their operations and realizing ambitious projects. These options are designed to offer strategic flexibility through a combination of financial products.
- Equity financing involves an investment of $5 million or more, typically representing between 20% and 30% of the company's shares.
- Debt financing is available for amounts up to $100 million.
- Senior secured loans are generally structured with other lenders and feature competitive, market-based terms and conditions.
- Subordinated loans can be provided with or without guarantees, with repayment terms and rates contingent on the business's financial situation, aligning with market conditions.
Eligible projects & activities
Development capital through equity financing by Investissement Québec can bolster ventures aiming to enhance ownership, expansion, and acquisition. This funding is tailored for ambitious projects that foster growth and productivity.
- Total or partial share redemption to maintain Québec ownership.
- Acquisition of a company in Québec or abroad.
- Growth or productivity enhancement, such as expansion or equipment upgrade.
Examples of admissible projects:
$ 1,300,000
Enhancing productivity with new packaging machinery in a food processing cooperative
$ 1,250,000
Expansion of a tech startup's operations to a new office
$ 1,500,000
Acquisition of a manufacturing company to increase production capacity
$ 1,550,000
Partial share redemption to maintain Québec ownership of a transport company
$ 1,400,000
Acquisition of a digital marketing agency for business expansion
$ 1,350,000
Modernization of equipment in a cooperative farm
Eligibility criteria of the Development Capital — Equity financing program
Eligibility for this grant is determined by the applicant's industry and location in Québec.
- The applicant must be a business located in Québec.
- The applicant must not operate in the agriculture sector unless they are ineligible for La Financière agricole du Québec programs.
- The applicant must not operate in the finance and insurance industry.
- The applicant must not engage in real estate activities, except certain excluded activities.
- The applicant must not be involved in retail sales and comparable activities.
- The applicant must not be involved in other industries where the clients are primarily individuals, except for tourism.
Who is eligible?
The Development Capital — Equity Financing initiative is open for applications from small and medium-sized businesses (SMBs) and large corporations. These entities must be involved in projects such as total or partial share redemption to maintain Québec ownership, acquisition of a company in Québec or abroad, or growth and productivity enhancement activities, which include expansion and equipment upgrades. The program allows for flexibility in project execution by offering significant equity investments starting from $5 million, alongside other financing solutions.
Who is not eligible
This grant excludes certain companies and industries due to their status or main activity. The restrictions aim to ensure that funds are directed toward strategic sectors aligned with the grant's objectives.
- Companies operating in the agriculture industry, except those ineligible for La Financière agricole du Québec programs.
- Businesses in the finance and insurance sectors.
- Companies involved in certain real estate activities.
- Retail sales businesses and comparable activities.
- Industries where clients are primarily individuals, with exceptions for tourism.
Eligible expenses
The eligible expenses for this grant include financial activities that support ownership maintenance, business expansion, and productivity improvements.
- Total or partial share redemption to maintain Québec ownership.
- Acquisition of a company in Québec or abroad.
- Growth or productivity enhancement projects, such as business expansion or equipment upgrades.
Eligible geographic areas
This grant is available for all businesses based in the province of Québec, Canada.
- Businesses operating within Québec.
Eligibility criteria of the Development Capital — Equity financing program
The grant has specific eligibility criteria including industry restrictions and limitations, apart from which all Québec businesses are eligible.
- Eligibility based on industry restrictions
- Companies ineligible for certain programs may qualify
- Seasoned experts working as a team
- Extensive financial capacity
- Comprehensive long-term vision
How to apply to the Development Capital — Equity financing program
1
Preparation of the request
- Identify the specific financial needs of your project to choose the appropriate financing solutions (equity participation, senior loan, subordinated loan).
- Gather the necessary documents, such as financial statements, the business plan, and any other evidence that may support your application.
2
Contact Investissement Québec
Call or send an email to Investissement Québec using the number or address provided (1 844 IQINFOS or investquebec.com) for more information or to initiate the application process.
3
Submission of the request
- Ensure that all forms required by Investissement Québec are completed in accordance with the instructions received from them.
- Submit all completed documents and forms according to the agreed method of transmission (online, by email, or in person).
4
Request tracking
- Wait for confirmation of the receipt of your request by Investissement Québec.
- Be prepared to respond to any requests for additional information or clarification from the staff of Investissement Québec.
Additional information
Here are additional relevant details for this grant:
- Investissement Québec offers the possibility of combining single or multiple financing solutions to provide flexibility for your projects.
- The equity investment typically involves acquiring between 20% and 30% of the company's shares.
- Projects can leverage substantial equity financing starting at $5 million.
- Debt financing options are available up to a total of $100 million.
- Senior secured loans are generally provided with other lenders based on competitive market conditions.
- For subordinated loans, repayment terms and rates are determined according to the specific conditions of the business, with or without guarantees.
- Investissement Québec positions itself as a resource with seasoned experts and a strong financial backing to support ambitious projects.
Contact Gouvernement du Québec
1 844 474-6367
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