MRC Fjord-du-Saguenay — Local FLI/FLS funds

Who is eligible?

Eligible applicants for the FLI/FLS investment policy include legally constituted for-profit enterprises under Quebec or Canadian law, as well as collective enterprises such as cooperatives and non-profit organizations (NPOs) operating as social economy enterprises within the meaning of the Social Economy Act.The eligibility criteria include:1. Location and Registration: - Must operate within the MRC's territory. - Must be registered at the Quebec Business Register (REQ). - Must have its head office located in Quebec.2. Eligible Enterprises: - Legal for-profit entities and social economy enterprises conducting commercial activities. - Social economy enterprises must meet specific conditions outlined in Annex A, including characteristics such as democratic governance, priority given to people over capital, collective control, and impactful local development.3. Eligible Sectors: - Enterprises from sectors aligned with MRC’s priorities.Sections 3.3 details non-eligible applicants who are excluded based on criteria such as non-compliance with public contract registers, governmental ownership, bankruptcy protection, unethical behavior, environmental non-responsibility, and other specific sector exclusions. Additionally, projects not supported include those involving arms production, fossil energy, gambling, violent games, sexual exploitation, real estate management, and some drug-related services, unless falling within specified exceptions for cannabis and industrial hemp.

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 sectors that align with sustainable and ethical practices, as well as to ensure financial prudence.

• Companies listed in the Register of enterprises ineligible for public contracts (RENA), including contractors associated with them.
• Applicants that have failed to meet obligations related to previous financial aids within the last two years after a formal notice.
• State-owned enterprises or those controlled by municipal, provincial, or federal governments, or entities majority-owned by such companies.
• Entities under protection from the Companies' Creditors Arrangement Act or the Bankruptcy and Insolvency Act.
• Companies with unethical behaviors affecting the integrity or reputation of the government.
• Businesses with non-compliant environmental practices according to applicable laws.
• Those with a history of violating labor standards or human rights legislation.
• Companies involved in the production or distribution of armaments.
• Entities related to fossil fuel activities except for transition projects.
• Organizations engaging in gambling activities like casinos and bingo halls.
• Firms involved in violent games or sports involving combat with any living species.
• Businesses in the sex industry, like erotic bars or adult entertainment.
• Real estate management and development, barring certain exceptions for tenant services.
• Enterprises linked to the tobacco or drug consumption industry, with certain exceptions for cannabis and industrial hemp under strict criteria.
• Cannabis industry projects related to recreational use or non-approved medical products.

Moreover, financial aid under this grant should not be utilized for payments benefiting ineligible entities.

Eligible expenses

The eligible expenses for this grant are detailed with specific attention to funding requirements and circumstances.

• The need for additional working capital compared to current expenses, necessary for implementing the company's project for a maximum period of two years, which includes the project year and the following year, based on justified and reasonable expenses.
• Capital expenditures strictly and directly related to the company's project implementation, such as acquiring technology, land, buildings, equipment, machinery, and rolling stock, as well as construction, expansion, renovation, landscaping, and fitting out premises and fields.
• Professional fees preliminary to the company's project implementation, such as feasibility analysis, external audit, or impact study.
• Professional fees strictly and directly related to the company's project implementation, such as the implementation of technology, equipment and machinery, as well as acquisition, construction, renovation, and landscaping of fields and premises.
• Entrepreneurial succession projects can include purchases of ownership shares (voting shares or parts) and assets of the targeted company.
• Professional fees strictly and directly related to the transaction and acquisition of the company, as well as the transfer of the company's management.

Eligible geographic areas

This grant is territorially restricted to companies operating within a designated area in Quebec, Canada. Eligible locations are determined by their presence within this specific MRC region, aligning with local economic development policies.

• Companies must operate on the territory of the MRC du Fjord-du-Saguenay.
• Businesses should have their head office located in Quebec.

Here are additional relevant details for this grant:

• The partnership between FLI and FLS involves utilizing a combined loan contract with differentiated interest rates for each fund.
• Pre-startup projects are excluded from funding, with eligibility beginning at the commercialization stage.
• The loan moratorium on capital and/or interest is determined by the project type, with specific durations provided.
• The maximum total repayable funds for any single enterprise under the FLI is $300,000, with specific restrictions on government aid combinations.
• Interest rates are determined by a risk analysis and may include a risk premium, amortization premium, and deduction for secured loans.
• Enterprises must meet high integrity standards to qualify and enjoy continued financial support.