Quebec Business Transfer Fund
At a glance
- From 50,000$ to 1,000,000$
- Open Date : July 28, 2022
- All industries
- CTEQ Centre de tranfer d'entreprise du Québec
Overview
Eligibility criteria
The eligibility criteria for the Fonds de transfert d’entreprise du Québec are:
- Only individuals, individual management companies, or the acquired company are eligible for the fund.
- Any transaction must involve a change of control within a Quebec company.
- The transaction must include the minimum participation of Investissement Québec or one of the three funds indirectly or directly associated with a related company, which must participate in the financing of the acquiring company as a lender or investor.
- To benefit from the fund, the successor must commit to working full-time in the targeted company and inject a minimum amount of $50,000.
Who is eligible
Yes, there are eligible types of companies for this grant. The grant is available to Quebec-based companies, including private or public corporations or partnerships with a net worth under $50 million or tangible net assets under $100 million, operating in Quebec with the majority of their employees residing in Quebec.
- Quebec-based companies
- Private or public corporations or partnerships
- Net worth under $50 million
- Tangible net assets under $100 million
- Operating in Quebec with majority of employees residing in Quebec
Who is not eligible
There are certain types of companies that are not eligible for the grant:
- Real estate sectors
- Transactions involving the acquisition of agricultural lands
Eligible expenses
There are eligible expenses for this grant. The Fonds de transfert d’entreprise du Québec allows the repreneur to obtain a term loan equivalent to two dollars for every dollar invested in capital, with a minimum of $50,000 and a maximum of $500,000. In cases where multiple releveurs join for an acquisition, a maximum amount of $1,000,000 could be allocated.
- Term loan for the repreneur
- Minimum investment of $50,000
- Maximum loan amount of $500,000 (or $1,000,000 for multiple releveurs)
Evaluation & selection criteria
The grant program has evaluation and selection criteria in place to determine eligibility for funding. The criteria include specific requirements that applicants must meet to be considered for the grant:
- Only Quebec-based businesses are eligible for the fund, with certain size and operational criteria.
- Individuals, a management company, or the acquiring business are eligible for the fund.
- Transactions must involve a change of control within a Quebec-based business.
- Minimum participation from Investissement Québec or related funds is required.
- Applicants must commit to full-time work in the targeted business and invest a minimum amount.
How to apply
- Step 1: Check eligibility
- Ensure your business meets the criteria for Quebec-based businesses
- Verify that the transaction involves a change of control within a Quebec company
- Confirm the minimum participation of Investissement Québec or related funds
- Step 2: Prepare necessary documentation
- Gather required documents such as financial statements, business plan, and details of the proposed transfer
- Complete any application forms or paperwork specified by the fund
- Step 3: Submit application
- Submit your application along with all supporting documents to the Fund de Transfert d’entreprise du Québec
- Ensure all information is accurate and complete before submission
- Step 4: Await review and decision
- Wait for the Fund to review your application and make a decision on funding approval
- Be prepared for potential follow-up questions or requests for additional information
Grant Summary
The Québec Business Transfer Fund supports new entrepreneurs looking to start businesses by providing financial support tailored to business transfer situations. The fund aims to retain and ensure the continuity of existing businesses in Québec, offering favorable financing conditions to successors.
Québec Business Transfer Fund Overview
The Québec Business Transfer Fund targets new entrepreneurs seeking to launch businesses by offering financial aid specific to business succession scenarios. This fund, established to enhance the retention and continuation of existing businesses in Québec, provides favorable financial assistance to successors. Managed by Investissement Québec, the fund aims to promote entrepreneurship growth and facilitate the transfer of businesses, fostering the emergence of new entrepreneurs under optimal conditions.
The fund's managers strive to provide advantageous financing conditions to increase the required capital for transferring Québec businesses across all regions. This initiative complements the offerings of traditional financial institutions, aiming to support the continuity and development of Québec businesses.
The Québec Business Transfer Fund is a limited partnership formed under Québec laws, with a total capitalization of $50 million. Notable sponsors include the Québec Economic Development Fund, Solidarity Fund QFL, CSN Fundaction, and Desjardins Regional and Cooperative Capital.
For companies to qualify for the fund, they must be Québec-based corporations or limited partnerships, publicly or privately held, with a net worth under $50 million or tangible net assets under $100 million, operated in Québec, and employing a majority of workers residing in the province. Eligible sectors include various industries, excluding real estate and agricultural land acquisition transactions. Constraints on the number of loans in retail are enforced.
To access the fund, individuals, their management companies, or the successor company must meet certain criteria. Transactions must involve a change in control within a Québec-based company, with minimum participation from Investissement Québec or one of the three tax-assisted funds directly or indirectly through an associated corporation. Successors committing to the fund agree to work full time in the target business and invest a minimum of $50,000.
The financial tool provided by the Québec Business Transfer Fund offers successors a term loan equivalent to two dollars for every dollar of capital invested by the acquirer, subject to a minimum of $50,000 and a maximum of $500,000. In cases where multiple successors collaborate for an enterprise acquisition, a maximum amount of $1,000,000 may be allocated. Interest rates are determined based on Québec bond rates with a seven-year maturity, plus a 3.25% premium, ensuring a minimum applicable interest rate of 6.50%. Payments, including both capital and interest, are monthly, and a moratorium on capital repayment can be granted for up to 24 months.
