Entreprendre Sherbrooke — Propulsion Fund Sherbrooke

• The business must be located on the territory of Sherbrooke.
• The project should demonstrate the capacity to create or maintain jobs.
• For start-up projects, there must be realistic financial forecasts for a two-year period.
• The company must demonstrate its viability and profitability through a business plan.
• The applicants must be aged 18 years and over.
• Applicants must not be bankrupt or must demonstrate they have been discharged from any bankruptcy judgment.
• Businesses at the pre-commercialization stage can request funding for market tests up to a specified maximum.
• The business must be either a for-profit company or a social economy enterprise, not inclusive of certain excluded sectors.
• The company must comply with the capital investment requirements, including a minimum capital level based on project cost.
• 20% of the board of directors must be Canadian citizens or permanent residents for profit-oriented companies.
• The business should engage in a market with development potential.
• The business must return the financial contribution if relocating outside Sherbrooke within two years of the grant agreement.
• The business must not fall into one of the excluded sectors (e.g., pyramid schemes, controversial industries, seasonal projects).

Who is eligible?

• Social economy enterprises located in Sherbrooke.
• For-profit enterprises located in Sherbrooke active in the following sectors:
  • Commerce and services
  • Artisanal production
  • Agrifood

Who is not eligible

• Pyramid schemes.
• Enterprises promoting violence, nudity, sexuality, religion, politics, or involved in controversial activities.
• Self-employed workers or those remunerated on commission.
• Seasonal projects that do not guarantee year-round operational activities.

Eligible expenses

• Capital expenses such as land, building, equipment, and machinery.
• Incorporation fees and patents.
• Acquisition of technologies, software, or off-the-shelf solutions.
• Professional fees.
• Working capital needs strictly related to the company's operations calculated for the first year of operation.

Eligible geographic areas

• Sherbrooke, Quebec, Canada.

• Demonstration of the project's viability and profitability via a business plan with realistic financial forecasts over two years.
• Capacity to maintain existing jobs in cases of succession, takeover, or growth projects.
• For startups, proof of creation of at least one job within the first two years for social economy enterprises, or two jobs for for-profit enterprises.
• Management team experience and/or training related to the project’s field.
• Presence in a market with development potential, evaluated by the project assessment committee.
• Compliance with financial contribution limits and capital requirements set by the grant guidelines.

• Financial assistance in the form of a non-repayable contribution is meant to be complementary to existing governmental programs and not a substitute.
• An enterprise may only benefit from the FPS contribution once every 24 months, with certain exceptions.
• Quarterly financial statements must be submitted following the receipt of the contribution for a period of 24 months.
• If the business relocates outside Sherbrooke within two years of receiving the contribution, the full amount must be repaid within 30 days of the move.
• The financial contribution should not be used for repaying any debts.
• For eligibility, the business must have a capitalization level representing at least 20% of the project cost including the FPS non-repayable contribution, and a minimum of 10% of this must be in cash.