MRC de Montcalm — FLI/FLS

• Completed, dated, and signed application form
• Business plan and/or detailed project description, detailed expense breakdown, and project financing plan with confirmation of any other financial assistance or financing linked to the project
• Financial statements for the last three years, interim financial statements if the statements are more than six months old or the business has less than one year of existence, and projected financial statements
• Declaration of compliance regarding francization or copy of the francization certificate, if applicable; declaration of compliance regarding employment equity or copy of the Employment Equity Program, if applicable
• Any other document required by the MRC

Who is eligible?

• Small and medium-sized enterprises (SMEs) legally constituted under the laws of Quebec or Canada
• Collective enterprises, including cooperatives and OBNLs with commercial activities
• Entrepreneurs or groups of entrepreneurs seeking to acquire a significant participation in an existing business for succession

Who is not eligible

• Applicants listed in the RENA, including subcontractors listed in the RENA for project work, and applicants who failed to meet obligations after formal notice within the previous two years
• Applicants not compliant with francization requirements, state-owned or government-controlled companies, businesses under bankruptcy or creditor arrangement protection, and businesses with unethical, environmentally irresponsible, or labour- and human-rights-related non-compliance
• Businesses in pre-startup or redressement situations, except for FLS projects under the criteria in section 3.4.2
• Businesses active, in whole or in part, in controversial weapons, fossil fuels, gambling, violent games, sexual exploitation, or real estate management and development
• Businesses involved in tobacco or drugs-related activities, and for FLI and FLS, cannabis and hemp financing is not allowed for recreational products, non-approved medical products, or additional cannabis products such as food ingredients, processed foods, topical products, concentrates, tinctures, and capsules

Eligible expenses

• Additional working capital directly necessary to carry out the project, for up to two years
• Capital expenditures directly linked to the project, including technology, land, buildings, equipment, machinery, rolling stock, construction, expansion, renovation, site and premises development, incorporation fees, software, progiciels, and patents
• Professional fees before the project, such as feasibility analysis, external audit, or impact study
• Professional fees directly linked to project implementation, including technology, equipment, machinery, acquisition, construction, renovation, and site and premises development
• Succession project costs, including acquisition of voting shares or parts, acquisition of assets, and professional fees linked to the transaction and transfer of leadership

Ineligible Costs and Activities

• Expenses incurred or projects and activities completed before the application is filed with the MRC de Montcalm
• Debt service, repayment of future loans, capital losses, capital replacement, and capital payments
• Transactions between related businesses or partners
• Research and development expenses
• Routine operating expenses and Quebec sales taxes

Eligible geographic areas

• MRC de Montcalm

• Economic viability, including profitability, repayment capacity, and prospects
• Promoters' relevant experience, domain knowledge, and management skills
• Environmental and social benefits through sustainable business practices
• Openness toward workers and labour relations
• Other financial partners, portfolio balance, and the sustainability of the funds

• Step 1
  • Prepare the application form and supporting documents.
  • Gather the business plan, financial statements, forecasts, and project details.
• Step 2
  • Submit the full application to the MRC de Montcalm.
  • Provide any additional documents requested by the MRC.
• Step 3
  • The MRC reviews the file for admissibility and analysis.
  • The investment committee studies the project and makes a decision.
• Step 4
  • If approved, complete the financing agreement and required conditions.
  • Proceed with disbursement once the required items are in place.

• Admissibility, analysis, and decision are handled by the MRC.
• Files are processed and analyzed continuously once the required information and documents have been provided.
• The CIC makes the investment decision and meets monthly, with additional meetings if needed.
• Loan contracts state the combined amount, the weighted rate, and the allocation between the FLI and FLS; when terms differ, they are shown as two loan portions.
• Any early repayment is applied pro rata to the two funds.

• Applications are reviewed continuously as the required information and documents are provided.
• The MRC provides support, advice, technical assistance, and referral to promoters.