MRC La Haute-Côte-Nord — FLI/FLS

• Applicant must be a legally constituted for-profit or social economy enterprise under the laws of Quebec or Canada.
• The business must operate in the territory of the MRC and have its head office in Quebec.
• Applicant must be registered with the Quebec Business Register (REQ).
• For social economy enterprises, compliance with specific criteria outlined in Annex A is required.
• Applicant must not be listed in the Register of enterprises ineligible for public contracts (RENA) or be under legal protection such as the Companies' Creditors Arrangement Act (CCAA) or the Bankruptcy and Insolvency Act.
• Applicant must not be a state-controlled entity or have ethical or environmental conduct issues.
• Applicant must demonstrate financial need and capacity for the project, including potential for project sustainability and employment support.
• The project must contribute to the development and economic impact of the MRC.

Who is eligible?

• Legally constituted for-profit companies under the laws of Quebec or Canada
• Collective enterprises such as cooperatives and non-profit organizations with merchant activities under the Social Economy Act
• Companies that are headquartered in Quebec and operating within the territory of the MRC La Haute-Côte-Nord
• Entrepreneurs or groups of entrepreneurs interested in acquiring at least 25% of an existing business for entrepreneurial succession
• Enterprises in eligible sectors contributing to collective social well-being, entrepreneurship, natural resource development, and innovation

Who is not eligible

• Companies registered in the Register of Enterprises Ineligible for Public Contracts (RENA), including their subcontractors listed on RENA for project-related work.
• Applicants failing in their obligations in the past two years after being duly noticed by the ministry or county related to previous financial aid.
• State-owned enterprises or entities controlled directly or indirectly by any level of government (municipal, provincial, federal) or companies mainly owned by a state entity.
• Organizations under protection of insolvency or bankruptcy laws such as the Companies' Creditors Arrangement Act or the Bankruptcy and Insolvency Act.
• Entities with ethical conduct likely to tarnish the integrity or probity of the government or the regional county municipality.
• Businesses irresponsible from an environmental legislation standpoint.
• Those with a history of violating labor standards or human rights laws.
• Industries involved in production or distribution of armaments.
• Those involved in fossil fuel sectors, except activities focusing on transition to a low-carbon economy.
• Gambling and betting activities, such as casinos or bingo halls.
• Violent games or combat sports involving any living species, racing, or similar activities.
• Entities exploiting sexual content, e.g., erotic bars or escort agencies.
• Real estate management and development, except in service-enhancing projects for tenants establishing a better living environment.
• Organizations involved in production, sale, or services linked to all tobacco or drug consumption, except specific cannabis and hemp activities meeting defined criteria by Health Canada.

Eligible expenses

• Additional working capital required for project realization, limited to expenses justified and deemed reasonable, covering up to two years.
• Capital expenses directly linked to project execution, including acquisition of technology, land, buildings, equipment, machinery, and vehicles, as well as construction, expansion, renovation, and development of premises and land.
• Professional fees for feasibility analysis, external audit, or impact study prior to project execution.
• Professional fees directly associated with project implementation, including technology deployment, equipment, machinery acquisition, construction, renovation, and development of premises and land.
• Acquisition costs of voting shares or asset titles of the enterprise.
• Professional fees directly related to the transaction and acquisition of the enterprise and the transfer of its management.

Eligible geographic areas

• Territory of the MRC La Haute-Côte-Nord
• Headquartered in Quebec

• Viability and economic sustainability of the business being financed, including its profitability, repayment capacity, and future prospects.
• Knowledge and experience of the promoters, particularly their understanding and aptitude in the relevant field and management.
• Environmental and societal benefits, with a focus on improving socio-economic and environmental performance through sustainable business practices.
• Openness towards employees, considering the company's approach to labor relations.
• Participation of other financial partners, especially the involvement of financial institutions and promoter's capital contribution.
• Long-term sustainability of the funds, ensuring that each investment is evaluated for its impact on the fund's portfolio balance and sustainability.

• Step 1: Document PreparationComplete the financial assistance application form, ensuring it is dated and signed.
• Prepare a detailed business plan or project description as required by the financial assistance application.
• Provide a detailed breakdown of project-related expenses.
• Compile the financial structure of the project along with confirmation of any additional financial assistance or funding related to the project.
• Gather the financial statements for the past three years.
• Prepare interim financial statements if the most recent financials are older than six months or if the business is less than a year old.
• Prepare future financial forecasts.
• Include a statement of compliance regarding language requirements or a copy of the language certification, if applicable.
• Include a statement of compliance with employment equality or a copy of the employment equality access program, if applicable.
• Include an environmental compliance statement.
• Include proof of insurance (guarantee).
• Collect any other documents required by the MRC.
• Step 2: Application SubmissionSubmit all the required documents along with the completed application form to the MRC of La Haute-Côte-Nord.
• Ensure that the submission meets all the set criteria and guidelines as per the policy.

• The investment policy was adopted by the MRC of La Haute-Côte-Nord on September 19, 2023.
• The joint financial engagement of FLI and FLS involves one loan contract indicating the total combined loan amount and weighted interest rate, potentially varied for each fund.
• The discretionary investment committee (CIC) can occasionally make exceptions for investment sharing proportions, taking into account the financial situation of each fund.
• Repayment conditions of any loan are structured to maintain the longevity and balance of the FLI.
• FLS can offer financing under certain conditions in case of economic recovery projects where the portfolio allows.
• Investments by the FLS and FLI are evaluated based on economic viability, promoter experience, environmental and social impact, openness to workers, and partnership with other financial entities.
• Enterprises can repay loans early, considering terms specified in the loan agreement.
• The policy allows for potential deviation requests from the CIC’s standard investment framework, contingent on approvals from the relevant governing bodies.