MRC Coaticook — Local Fund FLI/FLS

Who is eligible?

• 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.

Who is not eligible

• 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.

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.

Eligible geographic areas

• Territory of the MRC de Coaticook

• 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.