MRC Témiscamingue — Business Succession Loan
Témiscamingue, QC
Flexible financial aid for business start-up and development
grant_single|update January 24, 2025
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|fromMinToMax
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|closingDateJune 1, 2032
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
- Manufacturing
grant_single|grantors
- MRC Témiscamingue
grant_single|status
grant_card_status|open
grant_single_labels|preview
The grant provides flexible financial aid ranging from $5,000 to $150,000 to support the creation, acquisition, expansion, or modernization of a business, with an emphasis on job creation and retention. Eligible activities include entrepreneurship, strategic business transfers, and business expansion, particularly in sectors like transformation and primary agriculture and forestry.
grant_single_labels|terms_and_conditions
This loan offers tailored financing options for entrepreneurs seeking to ensure smooth business succession and the retention of employment levels. The terms are designed to accommodate the financial needs of succession planning and execution.
- Loan amounts range from $25,000 to $150,000, specifically aimed at facilitating business transfers.
- Interest rates are based on the Bank of Canada's base rate plus a 2% premium, with the option for annual renewal.
- The maximum loan duration is set at seven years, providing a balanced time frame for business adjustments post-transfer.
- Loans can cover at least 25% of the purchase of a business’s shares or assets, aiding significant equity transitions.
- Down payment requirements are considered with the promoter's commitment and the balance of sale price taken into account.
grant_single_labels|projects
The Business Succession Loan grant aims to support the transfer, development, and continuation of businesses in the MRC Témiscamingue region. Eligible project activities particularly focus on entrepreneurial transitions, employment retention, and youth engagement in business acquisitions.
- Support for the transfer and continuity of existing businesses to ensure job retention.
- Financial assistance for youth aged 18 to 39 years to acquire stakes in businesses, fostering their involvement in entrepreneurship.
- Support for projects that stimulate entrepreneurship and promote employment creation through business startups or expansions.
- Investment in sectors such as secondary and tertiary processing, primary agriculture, and forestry.
grant_single_labels|admissibility
Eligibility for this grant is determined by specific requirements related to the applicant's profile and proposed activities.
- The applicant must be an enterprise, sole proprietorship, partnership, corporation, non-profit organization, or social economy organization.
- Youths aged 18 to 39 years may apply for specific funding initiatives.
- The business owner or entrepreneur should have sufficient equity or be actively involved in the project.
- The business should not engage in sectors such as residential real estate, sex, religion, politics, or alcohol distribution.
- The project should not result in the displacement of clientele from an existing business.
grant_eligibility_criteria|who_can_apply
This grant offers financial support for entrepreneurs aiming to start, acquire, expand, or modernize their businesses. It includes a variety of loans designed to cater to different needs, such as young entrepreneurs, business succession, and local economic development.- Prêt Fonds d'investissement: Suitable for entrepreneurs looking to start, acquire, expand, or modernize their business with flexible financial assistance ranging from $5,000 to $150,000.- Prêt Stratégie jeunesse: Targeted at young entrepreneurs between 18 and 39, offering personal loans of $5,000 to $25,000 with the potential to finance two young entrepreneurs per enterprise.- Prêt Relève d'entreprise: Focuses on business succession to maintain employment, offering financial support from $25,000 to $150,000.- Prêt Fonds local d'investissement: Aims to stimulate entrepreneurship and job creation for start-up or business expansion projects with financial support from $5,000 to $150,000.- Prêt Aide aux jeunes: Supports young entrepreneurs aged 18 to 39 in acquiring up to 100% of an existing business, with loans from $5,000 to $25,000.
grant_eligibility_criteria|who_cannot_apply
Certain companies and industries are not eligible for this grant due to their specific nature or activities that are not supported. The selection criteria aim to support sectors that align with the program's strategic priorities and avoid redundancy in services offered in a community.
- Retail or service businesses starting in a community where the service already exists.
- Residential real estate activities.
- Sectors related to the sex industry, religion, politics, or alcohol distribution.
grant_eligibility_criteria|eligible_expenses
The grant allows for expenses related to entrepreneurship and business development projects.
- Purchase of equipment, terrains, and buildings.
- Initial investment capital for business setup.
- Acquisition of business shares or equity for young entrepreneurs.
- Working capital necessary for business operations.
grant_eligibility_criteria|zone
The MRC Témiscamingue — Business Succession Loan is specifically available for businesses located within the Témiscamingue region. This geographic limitation is set to maintain employment and decision centers within the area.
- Businesses located within the MRC of Témiscamingue.
grant_single_labels|criteria
The evaluation and selection of projects for this grant prioritize the financial stability and potential job creation of the proposed business initiatives.
- Rentability: Revenue projections must be sufficient to cover expenses and generate surplus.
- Management Team: Evaluation of the knowledge, experience, training, and networks of the leadership team.
- Repayment Capacity: Ability of the business to generate sufficient funds to cover all repayments of principal and interest on loans.
- Debt Ratio: Ideally, it should be less than 80% to ensure financial stability.
- Value of Guarantees and Warranties: Assessment of the assets pledged as security for the loan.
- Job Creation and Retention: Projects must demonstrate potential for job creation and maintenance.
grant_single_labels|register
Here are the steps to submit an application for this grant:
- Step 1: Research Eligibility
- Ensure your project and organization meet the eligibility criteria outlined by the fund, such as sector focus and ownership structure.
- Identify the specific type of loan or financial assistance that suits your needs: startup, acquisition, expansion, etc.
- Step 2: Gather Required Documentation
- Prepare financial statements and forecasts demonstrating the project's profitability and the company's repayment capacity.
- Compile details of the management team, including relevant experience and competencies.
- Collect any necessary legal or corporate documentation verifying your business structure.
- Step 3: Develop a Business Plan
- Create in-depth business and strategic plans that detail your project goals, market analysis, and competitive advantages.
- Include an overview of the funding requirement and the impact on job creation and retention in the region.
- Step 4: Contact the Fund Administration
- Reach out to the fund administrators at the SADC du Témiscamingue for guidance on your application and to clarify any specific submission requirements.
- Inquire about application deadlines and submission formats.
- Step 5: Submit Application
- Complete the application form with all required information.
- Submit your business plan, financial documents, and any additional supporting materials as instructed.
- Ensure submission before the specified deadline.
- Step 6: Confirmation and Follow-Up
- Receive confirmation of receipt from the funding body, along with a reference number for your application.
- Follow up if no confirmation is received within a reasonable timeframe.
- Prepare for possible interviews or requests for additional information from the fund administrators.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- The loans offered have a maximum duration of 10 years, except for the "Relève d'entreprise" loan, which has a maximum duration of 7 years.
- A grace period for interest payments of up to 24 months is available on certain loans following the initial disbursement.
- Loans cannot be used to repay existing debts.
- There is an application fee of 1% of the loan amount, with a minimum of $100.
- The interest rate is based on the Bank of Canada's business loan base rate, plus a risk premium.
- Specific focus is given to youth applicants aged 18 to 39 for certain programs, with particular stipulations on the percentage of business ownership needed.