Tourism Business Development Fund (TBDF)

Who is eligible?

Eligible applicants for the Fonds de développement des entreprises touristiques (FDET) are:

• Existing or startup businesses in the tourism sector, including for-profit enterprises, non-profit organizations, cooperatives, and business groupings.
• Businesses that are not in a restructuring process.

Who is not eligible

This grant excludes certain companies primarily due to their financial status. The restrictions ensure that funding supports robust and stable tourism initiatives.

• Companies in the process of financial restructuring or recovery.

Eligible expenses

The grant covers specific eligible expenses directly related to capital expenditures and the acquisition of necessary technologies and software.

• Costs directly related to capital expenditures such as land, building, and equipment/machinery.
• Expenses for the acquisition of technologies, software, and integrated software solutions.
• Working capital to support business operations during the first year in the context of a startup or expansion.
• Exceptionally, equity investment in a business or for the purchase or repurchase of business shares.

The evaluation and selection of projects for this grant are based on specific criteria to ensure alignment with the grant’s objectives of enhancing the tourism sector.

• The economic viability of the project, assessed based on:
• Competence and experience of the entrepreneur.
• Future prospects and permanence of the project.
• Entrepreneurial profile.
• Borrowing history.
• Touristic relevance of the project.
• Potential to attract a tourist clientele.
• Contribution to improving tourism revenues.
• Contribution to extending the operational period of tourism businesses.
• Contribution to diversifying the regional offer.
• Capital contribution from sources other than the promoter’s investment (desirable).
• Support, technical and/or financial, from local development organizations.
• If the region has a tourism excellence niche (ACCORD initiative), the project must be considered a priority.
• Ability of the promoter to obtain all required authorizations and permits.
• Compliance with sustainable development principles.

Here are the steps to submit an application for the Fonds de développement des entreprises touristiques (FDET):

• Step 1: Verify Eligibility
• Ensure that your project and organization meet all the eligibility criteria specified for the grant.
• Step 2: Prepare Required Documents
• Draft a comprehensive project proposal including the project's objectives, potential impact on tourism, and alignment with the fund's goals.
• Prepare supporting documents such as financial statements, business plans, and any necessary permits.
• Ensure inclusion of documents showing sources of private contributions (10% to 20% required).
• Step 3: Prepare Financial Plan
• Detail the financial requirements of your project, including a breakdown of the anticipated expenses and sources of financing.
• Step 4: Contact the Fund Provider
• Reach out to the Fonds de développement des entreprises touristiques for advice or clarification regarding your application.
• Email: fdet@filaction.qc.ca
• Phone: 1 888 525-2075, option 4
• Step 5: Submit the Application
• Send your completed application package to the designated contact method as per the fund regulations.

Here are additional relevant details for this grant:

• The financial assistance is available in the form of a loan, a bridge loan, or a promissory note.
• The minimum financial intervention amount is $50,000, with a maximum of $500,000.
• A private source contribution is mandatory, ranging from 10% to 20%.
• The maximum duration for financial intervention is 7 years with a possible moratorium on capital repayment.