MRC La Haute-Côte-Nord — FLI/FLS

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

• 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.