Group Entrepreneurship Capital Program

The Programme d’immobilisation en entrepreneuriat collectif (PIEC) supports social economy enterprises in Quebec with renovation, construction, or acquisition projects to develop their services. It aims to provide financial aid for creating adapted buildings while minimizing debt and enhancing access to financing.

The Programme d’immobilisation en entrepreneuriat collectif (PIEC) plays a crucial role in fostering the growth and sustainability of social economy enterprises in Quebec. Introduced as part of the 2020-2025 Government Action Plan for the Social Economy, this program is designed to support enterprises that significantly contribute to the social fabric and economic health of the region through their collective mission and economic activities.

The primary goals of the PIEC are multifaceted: - **Access to Suitable Buildings**: Facilitate access to buildings that are well-suited to the enterprises' activities, thus enabling them to expand their operations or service offerings. - **Minimizing Debt**: Provide financial aid to limit the indebtedness of these enterprises, ensuring they can focus on their core mission without being overburdened by financial constraints. - **Better Financing Access**: Enhance the investment in fixed assets by improving access to necessary funds. Social economy enterprises are encouraged to apply for one of the two financial aid programs under PIEC. Applicants must ensure their project meets the specific criteria of one of these programs, as applications can only be submitted for one.

To be eligible for the PIEC, enterprises must meet several stringent requirements: - **Social Economy Enterprises**: As defined by the Quebec Social Economy Act (RLRQ, chapter E1.1.1). - **Revenue Source**: Their financial viability must be supported by at least 40% autonomous revenue from economic activities in the past financial year. - **Location and Operation**: They must be registered, have an establishment, and actively operate in Quebec. - **Startups**: For enterprises less than 2 years old, a business plan or project summary with 24-month financial forecasts must demonstrate the potential to reach 40% autonomous revenue by the project's conclusion.

Certain types of organizations and sectors are excluded from eligibility: - Financial and insurance services - Animal services - Beverage dispensing establishments - Professional associations - Employer groups - Religious organizations - Labor unions - Chambers of commerce - Political parties - Public and private foundations (as defined by the Canadian Income Tax Act) - Trusts - Sports teams - Student associations - Private educational institutions (primary, secondary, post-secondary) Additionally, enterprises focusing predominantly on alcohol production must ensure more than 50% of their activities are manufacturing, meaning the produced beverages should mostly be distributed rather than consumed on-site.

Projects eligible for PIEC funding include: - **Renovation Projects**: These involve refurbishing, improving, restoring, or bringing a building up to standard for producing, selling, or servicing goods and services. - **Construction Projects**: This includes constructing, expanding, recycling, or reconstructing a building for similar purposes. - **Acquisition Projects**: Entails purchasing a building for the production, sale, or service of goods and services. Moreover, applicants must demonstrate: 1. Necessity: The project must be essential for expanding their economic activities and fulfilling their collective mission. 2. Complementarity: Financial support from PIEC should be supplementary to other available funding sources.

Certain projects do not qualify for PIEC funding, including: - Housing projects of any type - Accommodation in the health and social services sector, including elderly care - Childcare services - Projects targeting exclusive animal clientele - Projects focused primarily on septic systems, aqueduct connections, equipment purchases, or outdoor landscaping - Projects related to the acquisition, construction, or renovation of buildings in business recovery contexts

For projects that qualify, eligible expenses include: - Costs for compliance upgrades, expansion, renovation, construction, or building acquisition - Land acquisition costs for new building constructions - Preparatory studies (e.g., environmental analysis, soil analysis) - Professional fees (e.g., architecture, engineering, surveying, notary services, specialized firms for asbestos, and material control) - Purchase and installation of equipment necessary for the economic activity - Eco-construction costs (e.g., geothermal systems) - Costs related to integrating arts into architecture for applicable buildings - Construction contingencies, cost indexing, remote location factors, and risk reserves Notably, the purchase and installation of equipment should not exceed 40% of the total eligible costs.

The financial aid provided under PIEC is structured as a non-repayable financial contribution: - **Maximum Support**: Projects can receive support for up to 50% of eligible expenses, with a cap of CAD 500,000. The total government financial aid should not exceed 80% of the eligible project costs. - **Cumulative Aid**: Financial support from PIEC cannot be combined with financial aid from another MEIE program for the same project but can be combined with other government financial aids.

Submitting a well-documented application is crucial for securing funding. Necessary documents include: - A completed financial aid application form (available online via ClicSEQUR) - The enterprise's statutes and regulations - Financial statements for the past two years (notices to readers are not accepted) - For startups (in operation for less than 2 years): a business plan or project summary and 2-year financial forecasts showing 40% revenue from economic activities by the project's end - The most recent annual activity report or minutes from the last annual general meeting - Two-year budget forecasts - At least one detailed cost estimate for all planned works - Lease agreement (if applicable) - A copy of the certificate under the Contractual Obligation Program - Employment Equity (if applicable) - Any other documents supporting the project's environmental responsibility - For applicable enterprises, a copy of the francization certificate or a valid document from the OQLF (e.g., registration confirmation, linguistic situation analysis, or program application attestation)

To apply for PIEC funding, enterprises must: 1. Have a ClicSÉQUR - Enterprises account 2. Be registered for services offered by the Ministry The steps include: 1. Opening a ClicSÉQUR account (can take up to four weeks) 2. Registering for Ministry services If already registered, enterprises can access their dossier via the client portal.

Applications for the PIEC can be submitted between August 9 and October 15, 2024. Applications submitted before or after this period will not be accepted. It is highly recommended to consult with an expert at 1 844 474-6367 before beginning the application process to verify eligibility. This consultation should not be construed as financial aid authorization. Applicants are advised to review the presentation guide before submitting their aid request to ensure compliance with all requirements. In summary, the PIEC is a vital funding opportunity for social economy enterprises in Quebec seeking to undertake significant property-related projects. By providing substantial financial assistance, the program helps these enterprises develop their infrastructure, minimize debt, and ultimately, better serve their communities.