MRC La Haute-Côte-Nord — FLI/FLS

Who is eligible?

• Small and medium-sized for-profit businesses legally constituted under the laws of Quebec or Canada
• Collective enterprises, including cooperatives and NPOs, with commercial activities
• Individuals or groups seeking to acquire at least 25% of an existing business for entrepreneurial succession

Who is not eligible

• Applicants listed in the Registre des entreprises non admissibles aux contrats publics (RENA), including subcontractors listed in the RENA for project work.
• Applicants that failed, in the two years before the request, to meet obligations after formal notice related to previous financial aid, as well as state-owned or government-controlled entities, companies mainly owned by a state corporation, and applicants with the listed ethical, environmental, labour, or human-rights issues.
• Businesses operating, in whole or in part, in excluded sectors such as arms, fossil fuels, gambling, violent games, sexual exploitation, real estate management and development, and tobacco- or drug-related activities, except the explicit FLI cannabis and industrial hemp exceptions.
• Enterprises in pre-startup or restructuring, except for FLS under the criteria stated in section 3.4.2.
• Businesses not compliant with francisation requirements, including certain enterprises with 25 or more employees that do not hold a valid certificate or OQLF document, or that are listed as non-compliant by the OQLF.

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

• MRC La Haute-Côte-Nord

• 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.

• FLI/FLS applications may be submitted continuously to the MRC de La Haute-Côte-Nord.

• 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.