Saint-Hyacinthe Technopole — FLI/FLS

Who is eligible?

• For-profit entreprises legally constituted under the laws of Quebec or Canada.
• Collective enterprises, such as cooperatives and non-profit organizations (OBNL), engaged in mercantile activities.
• Enterprises based in Quebec with activities on the MRC’s territory and registered in the Quebec Business Registry.
• Social economy enterprises fulfilling specific conditions.
• Manufacturing activities.
• Key or structuring tertiary activities that are essential to the local community.
• Projects prioritized by the MRC, such as business succession, automation, productivity, and sustainable economy projects.
• Agri-food innovation.

Who is not eligible

• Applicants listed in the Register of Enterprises Ineligible for Public Contracts (RENA), including subcontractors listed in RENA.
• Applicants that have failed to meet their obligations in the past two years after receiving previous financial aid from the Ministry or the municipal county regional.
• State-owned enterprises or companies directly or indirectly controlled by any government (municipal, provincial, or federal), or enterprises majority-owned by a state-owned enterprise.
• Applicants protected under the Companies' Creditors Arrangement Act or the Bankruptcy and Insolvency Act.
• Applicants exhibiting unethical behavior that might tarnish the government's or municipal county regional's image of integrity and probity.
• Applicants exhibiting environmentally irresponsible behavior according to applicable legislation.
• Applicants with a history of non-compliance with labor standards or human rights legislation.
• Enterprises involved in the production or distribution of armaments.
• Enterprises involved in the exploration, extraction, drilling, production, and refining of fossil fuels, except for activities related to transitioning to a low-carbon economy.
• Enterprises engaged in gambling, such as casinos, bingo halls, and gambling terminals.
• Enterprises involved in violent video games, combat sports involving living beings, racing, or similar activities.
• Enterprises involved in sexual exploitation, such as erotic bars, escort agencies, erotic massage parlors, swinger clubs, or the production of pornographic material.
• Real estate management and development, except where services to tenants or residents are developed which may lead to better living environments.
• Enterprises producing, selling, or providing services related to tobacco or drugs, with exceptions for interventions related to cannabis and industrial hemp that meet certain criteria.
• For the cannabis and hemp industry, financial interventions are not authorized for recreational products, non-Health Canada-approved medical products, or additional cannabis products like food ingredients, processed food products, topical products, concentrates, tinctures, or capsules.

Eligible expenses

• Need for additional working capital, beyond existing current expenses, necessary for a period up to two years covering the project's realization year and the following one, based on justified and reasonable expenses.
• Capital expenditures strictly and directly tied to the project realization, such as acquiring technology, land, buildings, equipment, machinery, and rolling stock, as well as construction, expansion, renovation, and preparation of land and premises.
• Professional fees prior to project realization, like feasibility studies, external audits, or impact assessments.
• Professional fees strictly and directly related to project realization, like implementing technology, equipment, and machinery and acquiring, constructing, renovating, and arranging land and premises.
• Expenditures on acquiring ownership titles of the targeted enterprise (voting shares or parts) and assets of the targeted enterprise.
• Professional fees strictly and directly related to the transaction, acquisition, and management transition of the enterprise.

Eligible geographic areas

• The territory of the MRC des Maskoutains
• Companies with their head office in Quebec

• Economic viability of the funded company, including profitability, repayment capacity, and positive future outlooks.
• Knowledge and relevant experience of the promoters in the domain and management.
• Environmental and societal impacts of the projects, focusing on sustainable business practices.
• Openness towards workers and their integration into the business strategy.
• Involvement of other financial partners to minimize reliance on local funds.
• Emphasis on self-financing to ensure the sustainability and balance of the local fund portfolios.

• Step 1: Gather Required Documentation
• Complete the financial assistance application form, ensuring it is dated and signed.
• Prepare detailed business plans or project descriptions as required in the application form.
• Prepare a detailed breakdown of expenses related to the project.
• Assemble a financial plan including the project’s financial arrangement and confirmation of any other financial support or funding.
• Collect the financial statements from the past three years.
• Prepare interim financial statements if the previous financial statements are older than six months or if the company is less than a year old.
• Prepare projected financial statements.
• Include a declaration of compliance regarding French language requirements or attach a French language certificate, if applicable.
• Include a declaration of compliance regarding employment equity or attach an Employment Equity Access Program, if applicable.
• Prepare any other documents required by the MRC (Municipalité régionale de comté).
• Step 2: Submit Application to MRC
• Send the completed application form along with all necessary documentation to the MRC for evaluation. Ensure the submission aligns with budget availability and management standards.
• The MRC will process and analyze applications continuously, provided all required information and documents are supplied, ensuring equitable treatment of businesses.

• Interest rates for investments are calculated based on risk assessment, with a base rate by Desjardins adjusted by a risk premium.
• For the FLI, calculated interest rates range from very low (+0.25% to 1%) to very high (+6% and more), reflecting the risk level.
• Investments via "Fonds locaux" are primarily made through term loans, which may be secured or unsecured and could include participation elements like options on stock or revenue sharing.
• The repayment term for loans is typically up to 7 years, with some extensions up to 10 years in special scenarios, but not beyond June 1, 2032, for FLI loans.
• Administrative fees are applied, including a 1% non-refundable file opening fee and a 0.5% annual monitoring fee.
• A cost of $200 is charged for securing loan guarantees.
• All applications must include a business plan and financial statements, among other documents.
• Cumulative government assistance cannot exceed 50% of the total project cost, or 80% for social economy enterprises, when the FLI is involved.
• The interest rates vary based on the combined financing context of FLI and FLS, reflecting a weighted rate in the contract.
• FLS investments cannot take the form of capital stock acquisitions, but FLI may pursue such investments.