MRC Coaticook — Local Fund FLI/FLS
QC, Canada
Supports economic development for enterprises in Coaticook region
grant_single|update February 16, 2025
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Manufacturing
- Information and cultural industries
- Professional, scientific and technical services
- Health care and social assistance
- Arts, entertainment and recreation
- Other services (except public administration)
- Public administration
grant_single|grantors
- MRC de Coaticook
grant_single|status
grant_card_status|open
grant_single_labels|preview
The MRC Coaticook — Local Fund FLI/FLS provides up to a maximum of $150,000 to support projects related to business start-up, expansion, improvement, and entrepreneurial succession within the MRC territory. The program aims to foster economic development and job creation by offering financial aid to legally constituted for-profit businesses, cooperatives, and social economy enterprises in Quebec.
grant_single_labels|terms_and_conditions
- Investments are provided as term loans with or without collateral, including personal guarantees for the total amount, and may be participative or include royalties on net profit or sales increase.
- The maximum repayment term is generally 7 years, with an extension to 10 years possible if repayments are cash-flow dependent.
- A temporary moratorium on capital repayment may be granted for up to 12 months, with interest still payable monthly; specific projects may qualify for longer periods.
- For entrepreneurship succession projects, a moratorium on both principal and interest payments of up to 36 months with a possible interest holiday may apply.
- The FLS offers temporary loans with terms ranging from weeks to months, intended to bridge cash flow gaps pending receipt of confirmed revenues.
- No investment is made as refundable or non-refundable contributions attributed to subsidies.
- The FLS does not provide temporary loans, while the FLS can provide short-term bridge financing for confirmed but delayed revenue.
- For the FLI, a maximum of 50% of eligible project expenses, capped at $150,000 per beneficiary in a 12-month span, and a $300,000 cumulative repayment ceiling exists.
- No investments under FLS as equity; FLI can acquire bonds, debt securities, or equity stakes if needed.
- A funding ceiling of $100,000 for FLS investments within a single enterprise or affiliated group is established.
- The MRC enforces a risk-based interest rate policy adding risk and amortization premiums to the base rates of 4% for FLS and 2% for FLI, with additional discounts possible based on project characteristics like eco-responsibility.
- Loan repayment by anticipation is allowed with adherence to the loan agreement terms.
grant_single_labels|projects
- Business start-up projects including the commercial phase.
- Entrepreneurial succession projects, where individuals or groups acquire a significant share and manage an existing business.
- Business acquisition projects where companies acquire assets or shares of another business.
- Business improvement and transformation projects focused on productivity, digital transformation, or sustainable practices.
- Business growth and expansion projects for increased market presence or new product deployment.
- Temporary financing projects awaiting confirmed revenue, such as bridge loans.
- Business recovery projects for companies experiencing non-critical crises with a strong management team and market viability.
grant_single_labels|admissibility
- Must be a legally incorporated for-profit company under Quebec or Canadian law, or a collective enterprise like a cooperative or non-profit organization (OBNL) with commercial activities as per the Social Economy Act.
- The headquarters must be located in Quebec and the enterprise must operate within the territory of the MRC Coaticook.
- The enterprise must be registered in the Quebec Business Registry (REQ).
- Social economy enterprises must comply with the conditions outlined in Annex A.
- Projects must not involve industries such as production or distribution of armaments, activities related to fossil fuels (except transition activities), gambling, exploitation of violent games or sports, sexual exploitation, or real estate management and development (unless it serves resident service development).
- Applicants with an ethical conduct or responsible behavior that could tarnish the image of the government or MRC, or with a history of non-compliance with labor standards or human rights, are not eligible.
- Bankruptcy protection or failure to meet obligations towards the Ministry or MRC can disqualify an enterprise.
- Applicants exploiting tobacco, recreational cannabis, or certain unlicensed medical cannabis products are ineligible.
- Must not be a government-controlled entity or a majorly state-owned enterprise unless specified.
grant_eligibility_criteria|who_can_apply
- For-profit companies legally constituted under the laws of Quebec or Canada.
- Collective enterprises (cooperatives and non-profit organizations with commercial activities) within the meaning of the Social Economy Act.
- Businesses operating within the territory of the MRC de Coaticook and having their headquarters in Quebec.
grant_eligibility_criteria|who_cannot_apply
- Companies registered in the Register of enterprises ineligible for public contracts (RENA), including their subcontractors registered in RENA for project execution.
- Applicants who have failed to meet obligations in the past two years after being duly notified by the Ministry or the county regional municipality.
- State-owned enterprises or companies directly or indirectly controlled by a government (municipal, provincial, or federal) or companies majority-owned by a state-owned enterprise.
- Companies under the protection of the Companies' Creditors Arrangement Act or the Bankruptcy and Insolvency Act.
- Entities with ethical conduct that could negatively reflect on the government's or municipality's image.
- Enterprises with irresponsible environmental conduct according to applicable legislation.
- Entities with a history of non-compliance with labor standards or human rights legislation.
- Companies involved in the production or distribution of armaments.
- Entities engaged in activities related to fossil fuel exploration, extraction, drilling, production, and refining, except for activities transitioning towards a low-carbon economy.
- Organizations involved in gambling activities, such as casinos, bingo halls, or gaming terminals.
- Enterprises engaged in violent games, combat sports involving living creatures, races, or similar activities.
- Organizations involved in sexual exploitation, such as erotic bars, escort agencies, erotic massage parlours, or swinger clubs, and the production of pornographic material.
- Businesses focused on real estate management and development, unless related to tenant or resident service developments.
- Entities engaged in the production, sale, and services related to the consumption of tobacco or drugs, except under specific conditions relating to cannabis and industrial hemp.
- Financial interventions related to recreational cannabis products or non-approved medical cannabis products by Health Canada.
grant_eligibility_criteria|eligible_expenses
- The need for additional working capital necessary for the realization of the company's project for a period of up to two years.
- Capital expenditures strictly and directly related to the realization of the company's project, such as acquisition of technology, land, buildings, equipment, machinery, and rolling stock, as well as construction, expansion, renovation, and layout of the land and premises.
- Professional fees prior to the realization of the company's project, such as feasibility analysis, external audit, or impact study.
- Professional fees strictly and directly related to the realization of the company's project, such as implementation of technology, equipment, and machinery as well as acquisition, construction, renovation, and layout of the land and premises.
- Expenses for the acquisition of ownership titles of the targeted company (voting shares or parts) and assets of the targeted company related to entrepreneurial succession.
- Professional fees strictly and directly related to the transaction and acquisition of the company and to the transmission of the company's management.
grant_eligibility_criteria|zone
- Territory of the MRC de Coaticook
grant_single_labels|criteria
- The economic viability of the financed enterprise, demonstrating potential for profitability, repayment capacity, and positive future prospects.
- The knowledge and experience of the promoters, showcasing relevant expertise and management skills.
- The environmental and societal impacts of the project, aiming to improve the socio-economic and environmental balance through sustainable business practices.
- The openness towards workers and the approach to labor relations considered in the financing analysis.
- Partnerships with other financial entities, highlighting the desirability of obtaining capital from sources like financial institutions or promoter contributions.
- The sustainability of funds, ensuring the self-financing capability of the local funds and analyzing the investment's impact for equilibrium and perpetuation of funds.
grant_single_labels|register
- Step 1: Complete the Financial Assistance Application Form
- Fill out the application form for financial assistance, ensuring it is dated and signed.
- Step 2: Prepare Supporting Documents
- Compile a detailed business plan or description of the project as required by the financial assistance application.
- Include a detailed breakdown of expenses related to the project.
- Prepare the financial framework of the project and confirm any other financial assistance or funding attached to it.
- Gather financial statements for the last three years.
- If financial statements are older than six months or if the business is under one year old, provide interim financial statements.
- Develop projected financial statements for the business.
- Include a declaration of compliance concerning language requirements or a copy of the certificate of compliance (if applicable).
- Provide a declaration of compliance concerning equal employment opportunities or a copy of the Equal Employment Opportunity Program (if applicable).
- Submit any other necessary documents requested by the MRC.
- Step 3: Submit the Application
- Ensure all required information and documentation are complete.
- Submit the application and supporting documents to the MRC, ensuring it meets budget availability and adheres to management standards.
grant_single_labels|otherInfo
- The investment policy stipulates that any sum repaid in advance must be allocated proportionally between the two funds.
- Investments by the FLI or FLS can be adjusted based on the calculated risk associated with a potential project.
- Borrowers may be required to engage a personal guarantee for the total amount borrowed.
- MRC of Coaticook requires borrowers to have life insurance covering the loan amount for its duration, with the MRC named as an irrevocable beneficiary.
- The investment horizon is generally capped at 7 years, with specific provisions under certain conditions allowing for up to 10 years.
- The FLS is capable of providing temporary bridge financing, unlike the FLI.
