MRC Drummond — Local investment funds and local solidarity funds
QC, Canada
FLI: Development loan for Quebec manufacturing businesses
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
grant_single|grantors
- MRC Drummond
grant_single|status
grant_card_status|open
grant_single_labels|preview
The Fonds local d’investissement (FLI) program's "entreprise en développement" component offers up to $75,000 as a term loan to support investment projects in the manufacturing sector. Eligible activities include capital expenditures on items such as land, building, equipment, and working capital essential to the business's operations.
grant_single_labels|projects
This grant supports projects that focus on capital expenditures within the manufacturing sector. It aims to assist businesses in enhancing their operational capabilities and infrastructure through strategic investments.
- Acquisition of land for business expansion or operations.
- Construction or purchase of buildings to support manufacturing activities.
- Procurement of equipment necessary for manufacturing processes.
- Investment in rolling stock to support transportation needs.
- Incorporation-related expenses necessary for business structuring.
- Working capital needs strictly related to the operations of the business.
grant_single_labels|admissibility
Eligibility for this grant is determined by specific requirements related to the company's operations and financial commitment.
- The company must have been in operation for two years or more.
- The project must involve an investment between $50,000 and $300,000.
- The company must be registered with the Registre des entreprises du Québec (REQ).
- The company must provide a minimum of 10% of the project cost as a down payment.
grant_eligibility_criteria|who_can_apply
The "entreprise en développement" section of the Fonds local d’investissement (FLI) is available for manufacturing sector businesses. Non-eligible sectors include traditional tertiary (retail, services, etc.), tourism, agri-food, and primary agriculture. Eligible businesses must be operational for at least two years, have an investment project ranging from $50,000 to $300,000, be registered with the Quebec business registry (REQ), and provide at least 10% of the project cost as equity. The assistance is provided in the form of a term loan, covering up to 25% of the project cost, with specific financial conditions applying throughout the loan term.
grant_eligibility_criteria|who_cannot_apply
This grant excludes certain companies and industries based on their sector of operation. It ensures that only businesses within the strategic manufacturing sector are eligible for funding.
- Companies within the traditional tertiary sector (retail, services, etc.).
- Businesses operating in the tourism sector.
- Firms within the agri-food sector.
- Enterprises involved in primary agricultural activities.
grant_eligibility_criteria|eligible_expenses
This program covers specific capital and operating expenses essential for the development and expansion of the business.
- Capital expenditures involving land acquisition.
- Construction or purchase costs related to buildings.
- Purchasing equipment necessary for business operations.
- Acquisition of rolling stock.
- Incorporation fees except goodwill expenses.
- Working capital strictly related to the business operations.
grant_single_labels|register
- Step 1: Determine Eligibility
- Ensure your business is in operation for at least two years and is in the manufacturing sector.
- Verify that the investment project is between $50,000 and $300,000.
- Check that you are registered with the Quebec Enterprise Register (REQ).
- Confirm you have at least 10% of the project's cost as an investment.
- Step 2: Prepare Documentation
- Prepare a detailed business plan highlighting the investment project.
- Gather financial statements and project budgets.
- Include all necessary supporting documents, such as proof of registration and past financial records.
- Step 3: Collaborate with Financial Partners
- Identify and secure commitments from other financial partners, such as financial institutions or government bodies.
- Ensure your combined funding meets the requirement of the grant program.
- Step 4: Complete Application
- Fill out the application form available from the funding body.
- Ensure all sections of the form are completed accurately and thoroughly.
- Attach all prepared documents and proposals.
- Step 5: Submit Application
- Submit the application and all accompanying documents to the funding body through their specified method (may require mailing or online submission).
- Ensure submission is before the program deadline.
- Step 6: Await Confirmation
- Receive confirmation of receipt from the funding body.
- Keep the confirmation for your records.
Apply to this program
Supporting Growing Manufacturing Companies in Quebec
The Fonds local d’investissement (FLI) provides financial support to manufacturing businesses in Quebec looking to expand their operations. It offers a unique combination of advantageous loan conditions, encouraging businesses to invest while boosting the local economy.
In-depth Overview of the Fonds local d’investissement for Manufacturers
The Fonds local d’investissement (FLI) "Entreprise en développement" program is aimed specifically at manufacturing companies in Quebec that have been operational for at least two years and are seeking to invest between $50,000 and $300,000 in their business growth. The primary objective of this program is to foster economic development by offering financial assistance that complements existing financing avenues and requires a promoter's contribution, thus ensuring that business owners are invested in the program’s success.
The nature of the financial aid is in the form of a term loan with several favorable conditions that should appeal to potential recipients. Firstly, businesses can receive up to 25% of their project costs, but not exceeding a total amount of $75,000. Such a cap ensures that the aid remains supplemental, driving businesses to explore additional funding from banks, government bodies, or other private investors. The loan's repayment period extends to a maximum of 84 months, giving businesses ample time to see a return on their investments before the full repayment is required.
A standout feature of this loan is its structure during the repayment period. There is a no-interest period in the first year where repayments focus solely on the principal amount. This alleviates the financial burden as businesses can utilize their resources towards implementing and optimizing their projects. As the businesses stabilize and generate increased revenue, the second and third year installments introduce a reduced interest rate of 50% of the usual rate, providing a gradual scaling-up of financial responsibilities. In subsequent years, standard interest rates are applied, indicating the program's intent to cushion initial financial pressures on budding projects.
Eligible expenses under this grant focus on capital expenditures, crucial for the structural expansion or upgrade of the business facilities. This includes purchasing land, buildings, critical equipment, and rolling stock. Additionally, it covers incorporation fees, promoting a legitimate and professional business structure, while needs strictly related to business operations are also considered valid for funding. This precise targeting of funds ensures that the financial aid directly contributes to enhancing the productive capacities of the business.
The FLI program is designed with the manufacturing industry's growth in mind, excluding the tertiary sector such as retail, traditional services, tourism, and agro-based sectors, ensuring a focused impact where industrial development is most needed. This grant aligns with broader economic priorities, aiming to solidify the manufacturing base as a backbone for regional development. By prioritizing manufacturing, there’s a clear commitment to sustaining industries that have a multiplier effect on the economy through job creation and local sourcing of raw materials.
For companies in Quebec looking to expand their influence and operational capacity, the Fonds local d’investissement represents more than just financial assistance. It’s an opportunity to align with governmental economic objectives, leverage financial resources, and partner with financial institutions and governmental bodies. Such a partnership not only mitigates individual financial risk but also opens doors to more networking and developmental benefits in the future.
Businesses interested in applying for this financial assistance should ensure they meet all eligibility criteria and emphasize their capacity to invest at least 10% of the project’s cost themselves. This requirement signifies a mutual commitment to the business venture, with businesses demonstrating their belief in the viability and potential success of their projects by committing their resources.
Overall, the FLI caters to the specific needs of the manufacturing sector, evidencing a tailored approach in fostering sustained economic growth and supporting businesses at crucial stages of their development. As companies utilize this fund, they are not only investing in their future but also contributing to the broader economic landscape of Quebec, making industrial advancement a shared success.
