MRC de Mékinac — Local Investment Fund (FLI) and Solidarity Fund (FLS)

Who is eligible?

The "Fonds locaux" grant targets businesses, sole proprietors, cooperatives, and social economy enterprises that are legally constituted, and whose main operations are based in the MRC de Mékinac. These entities must also be registered with the Quebec Business Registry (REQ).

• Enterprises in the start-up, expansion, acquisition, or consolidation phases.
• Businesses operating in the primary, secondary, tertiary engine, and tertiary traditional sectors, excluding those listed in Annex B.
• Social economy enterprises recognized by the MRC de Mékinac, complying with specific conditions such as democratic management and economic self-financing.
• Projects that create employment opportunities and contribute to the economic development of the MRC de Mékinac territory.
• Individuals or groups looking to acquire a significant participation (minimum 25%) in an existing business for succession purposes.

Who is not eligible

The Fonds Locaux grant is designed to support strategic sectors and viable projects that align with economic development goals in Mékinac. Consequently, certain industries and types of businesses are not eligible due to predefined exclusion criteria and priorities.

• Businesses in pre-startup phases (only companies at the commercialization stage are eligible for funding).
• Projects related to housing (unless they pertain to services for tenants or residents).
• Organizations managed by the Quebec government or responsible for Quebec government programs, including specific childcare services, home support services, and others defined under governmental administration.
• Companies in sectors generally excluded, such as animal services, landscaping, bars and nightclubs, and several others listed in Annex B.
• Sectors related to arts, non-essential personal services, and financial services.
• Enterprises where the equity is negative post-financing.
• Projects proposing fewer than four chalet units in initial phases in the tourism sector.
• Individual enterprises outside of the MRC de Mékinac territory that are not legally registered or recognized social economy entities.

Eligible expenses

The grant covers specific expenses directly linked to a company's operational and expansion efforts.

• Capital expenditures such as land, buildings, equipment, machinery, rolling stock, incorporation fees, and other similar expenses, excluding goodwill expenses.
• The acquisition of technology, software or integrated software solutions, patents, and similar expenditures, excluding research and development activities.
• Working capital needs strictly related to the company's operations, calculated for the first year of operation or for the first year following an expansion project.

Eligible geographic areas

This grant is available to companies whose principal operations are within specific geographical areas as determined by the funding authority. The eligible locations are aligned with the development objectives of the MRC de Mékinac.

• Companies operating mainly within the territory of the MRC de Mékinac.

Here are additional relevant details for this grant:

• The investment strategy includes using a risk-based interest rate, with specifics outlined in a risk determination grid.
• Investment types include conventional loans and participative loans with a payback period ranging from 1 to 7 years.
• A maximum loan repayment moratorium of 12 to 24 months is available, depending on project type.
• The loan may be repaid early under the conditions set in the loan agreement.
• No application or follow-up fees are charged for this grant.
• Projects that lead to exportation, support growth, or improve productivity may qualify for an extended capital repayment moratorium.
• The investment should ideally result in a self-financing commitment to sustain the local fund’s operations.
• There is a 50/50 investment sharing between the Local Investment Fund (FLI) and the Local Solidarity Fund (FLS) for eligible projects.
• An equity contribution of at least 10% must be in cash from the applicant.
• Loan terms may be more favorable if additional guarantees are provided, such as tangible assets.
• All loan contracts are ideally prepared by the financial analyst of the MRC de Mékinac.
• The "Fonds locaux" do not intervene in projects with negative equity post-financing.