Sherbrooke — Local investment and solidarity funds (FLI and FLS)

Who is eligible?

• For-profit businesses legally constituted under the laws of Quebec or Canada.
• Collective businesses, including cooperatives and OBNLs, with commercial activities under the Social Economy Act.
• Businesses operating on the territory of the City of Sherbrooke and having their head office in Quebec.
• Businesses registered with the Quebec Enterprise Register (REQ).
• Businesses in the primary, manufacturing, tertiary engine and technological, traditional tertiary, or tourism sectors.

Who is not eligible

• Applicants registered on the Register of enterprises ineligible for public contracts (RENA), including subcontractors registered on the RENA for project work.
• Applicants that failed to meet obligations after a previous financial aid and were duly put in default during the 2 years before the application.
• State-owned companies or companies controlled directly or indirectly by a government, and businesses majority-owned by a state-owned company.
• Applicants under the Companies’ Creditors Arrangement Act or the Bankruptcy and Insolvency Act.
• Applicants with unethical conduct, environmentally irresponsible conduct, or a history of non-compliance with labour standards or human rights legislation.

Eligible expenses

• Additional working capital needed for the project of the company, compared to existing operating expenses, for a maximum period of two years, which corresponds to the year of project completion and the following year, determined on the basis of justified and reasonable expenses.
• Capital expenses strictly and directly related to the realization of the company's project, such as the acquisition of technology, land, buildings, equipment, machinery, and rolling stock, as well as construction, expansion, renovation, and development of land and premises.
• Professional fees incurred prior to the company's project realization, such as feasibility analysis, external audit, or impact study.
• Professional fees strictly and directly related to the realization of the company's project, such as the implementation of technology, equipment, and machinery, as well as the acquisition, construction, renovation, and development of land and premises.
• For entrepreneurial succession projects, expenses related to the acquisition of property titles of the targeted company (voting shares or units) and the company's assets.
• Professional fees strictly and directly related to the transaction and acquisition of the business as well as the transfer of the company's management.

Ineligible Costs and Activities

• Projects in pre-startup stage.
• Activities focused only on subcontracting or privatizing operations, or certain operations, that only move economic activity and jobs from one organization to another.
• Production or distribution of controversial weapons.
• Exploration, extraction, drilling, production, or refining linked to fossil fuels such as oil and thermal coal, except activities aimed at a transition to a low-carbon economy.
• Gambling, violent games, sexual exploitation, real estate management and development, tobacco or drug-related services, and professional services; prohibited cannabis-related products include recreational products, non-homologated medical products, and additional cannabis products.

Eligible geographic areas

• Territory of the City of Sherbrooke

• Economic viability of the project, including profitability, repayment capacity, and good prospects.
• The promoters’ relevant knowledge, experience, and management skills.
• Environmental, societal, and local economic impacts, including sustainable business practices and job creation.
• Market potential, competition, and sector trends, as well as openness toward workers and labour relations.
• Participation of other financial partners and the long-term sustainability of the funds.

• Step 1: Complete Application Form
  • Obtain the application form pertinent to the FLI/FLS funding.
  • Fill out all sections of the form, ensuring that the information is accurate and up-to-date.
  • Date and sign the completed form.
• Step 2: Prepare Supporting Documentation
  • Compose a detailed business plan or project description as required.
  • Prepare a breakdown of the project's expenses.
  • Compile the financial structure of the project, including confirmed financial aid or other financing.
  • Gather the financial statements from the past three years.
  • Include interim financial statements if applicable.
  • Prepare forecasted financial statements.
  • Gather declarations of compliance, such as francization or equality in employment certificates, if applicable.
  • Gather any additional documents requested by the City of Sherbrooke.
• Step 3: Submit Application
  • Submit the completed application form and all supporting documents to the City of Sherbrooke for review.
  • Ensure that the submission meets all requirements outlined by the investment policy.
• Step 4: Await Review and Decision
  • Wait for the City of Sherbrooke to review the submitted application and materials.
  • The application will be evaluated based on eligibility, analysis, and decision criteria.

• Entreprendre Sherbrooke provides personalized support, advice, technical assistance, mentoring, and coaching.
• The organization accompanies promoters from ideation to project maturity and can help with commercial location and economic data needs.