MRC La Vallée-de-l'Or — Local Investment Fund FLI – Succession Stream
Last Update: January 24, 2025
QC, Canada
FLI program supports business ownership transition and acquisition
MRC La Vallée-de-l'Or — Local Investment Fund FLI – Succession Stream at a glance
Eligible Funding
- Max. $250,000
- Up to 15% of project cost
Timeline
- Open Date : January 1, 2023
- Closing date : December 31, 2023
Financing Type
Loans and Capital investments
Eligible Industries
- All industries
Grant Providers
- MRC La Vallée-de-l'Or
Status
Closed
Overview of the MRC La Vallée-de-l'Or — Local Investment Fund FLI – Succession Stream program
The Fonds local d’investissement (FLI) program aims to support business succession and acquisitions by financing up to $250,000, with a focus on maintaining the economic diversity in the MRC de la Vallée-de-l’Or region. Eligible activities include acquiring at least 25% of an existing business's shares or assets, or undertaking a complete acquisition.
Financing terms and conditions
The Local Investment Fund (FLI) — Succession Stream provides financial assistance to support business succession and acquisition projects, fostering economic diversity in the MRC La Vallée-de-l'Or. The fund offers interest-free loans with specific conditions to facilitate successful ownership transitions.
- A maximum loan of $25,000 is available interest-free, with the possibility of a capital repayment holiday for the first year.
- For acquisition projects, an additional loan amount of up to $25,000 may be granted at a 4% interest rate, annually, with a potential capital repayment holiday in the first year.
- The total financial assistance from all governmental sources cannot exceed 50% of the eligible expenses.
- The loan amount can reach up to 50% of the project's eligible expenses.
- Entrepreneurs must provide a minimum of 15% of the total project costs as equity.
- The loan is to be repaid in fixed monthly installments over a period of one to seven years.
- The loan can be repaid in full or in part at any time without penalty.
- Entrepreneurs must guarantee the loan personally.
- Titel or asset acquisition must not occur before the official aid application submission.
Eligible projects & activities
This grant focuses on assisting entrepreneurs in acquiring or taking over existing businesses to sustain economic diversity in the MRC de la Vallée-de-l’Or region. Eligible projects include significant share acquisitions and business takeovers.
- Acquisition of at least 25% of an existing company's shares or assets to facilitate a business succession.
- Full acquisition of a business's shares or assets, excluding simple buyouts.
Eligibility criteria of the MRC La Vallée-de-l'Or — Local Investment Fund FLI – Succession Stream program
The company eligibility for this grant is determined by the criteria regarding ownership and acquisition activities.
- The company must be involved in a project aiming for a significant acquisition, with at least 25% ownership of an existing business or its assets.
- The project should focus on the transition of leadership and ownership from the current owner(s).
- In the case of a full acquisition, the company must acquire 100% of the shares or assets of the business.
- Companies involved in a simple buyout are not eligible.
- The project must include eligible acquisition expenses such as purchasing company shares or assets, excluding goodwill expenses.
Who is eligible?
Eligible applicants include Canadian citizens or landed immigrants who are permanent residents of Quebec and are over 18 years old. Applicants must have relevant experience and/or training related to the project, commit to working full-time (minimum 35 hours per week), and invest a minimum of 15% as their own contribution towards the project.
Eligible expenses
The grant covers expenses directly related to the acquisition or transition of business ownership.
- Expenses for the acquisition of ownership titles of the targeted business (voting shares or units).
- Professional service fees directly related to the acquisition transaction.
- Expenses related to the acquisition of assets of the targeted business, excluding goodwill expenses.
Eligible geographic areas
This fund is targeted at companies operating within the MRC de la Vallée-de-l'Or to support local economic diversity through business succession and acquisition projects.
- Companies based in the MRC de la Vallée-de-l'Or region.
Eligibility criteria of the MRC La Vallée-de-l'Or — Local Investment Fund FLI – Succession Stream program
The evaluation and selection of projects for this grant are based on qualitative criteria to ensure alignment with the established objectives.
• Alignment of the project with the objectives of business succession and acquisition.
• The entrepreneur’s ability to invest at least 15% of the total project costs.
• Economic viability of the project over the financing period.
• Commitment of the entrepreneur to work full-time in the business.
• Adequate documentation proving ownership of at least 25% of the business in the case of succession, or 100% in the case of acquisition.
• Potential impact on the local economic diversity of the MRC de la Vallée-de-l’Or.
How to apply to the MRC La Vallée-de-l'Or — Local Investment Fund FLI – Succession Stream program
1
Verification of eligibility criteria
- Make sure that you meet all eligibility criteria such as being a Canadian citizen or a permanent resident of Quebec.
- Confirm that your project is eligible, whether for succession or acquisition of a business.
2
Preparation of the documentation
- Prepare all relevant documents proving your ownership rights of the business (minimum 25% for succession and 100% for acquisition).
- Gather the agreement binding the contractor to the current owner of the business, if it is a succession.
- Compile eligible expenses and the capital contribution (minimum 15%).
3
Preparation of the proposal and the application form
- Write a project proposal detailing the objectives and the impact of the project.
- Fill out the application form including all required information about the project and finances.
4
Submission of the request
- Contact a MRC advisor at 819 825-7733 or 819 874-4333 for further advice.
- Send the complete application and supporting documents to the MRC before initiating any purchase transaction.
Additional information
Here are additional relevant details for the Fonds local d’investissement (FLI) grant:
- The grant is offered as a loan, not a gift, and repayment is required under specified terms.
- A loan is provided interest-free up to $25,000 for projects both under "relève" (succession) and "acquisition", with an additional amount subject to 4% interest for acquisitions.
- A minimum personal investment of 15% of the project costs is mandatory.
- Proposals can include a balance of sale price from the vendor as part of the personal investment if it's not repayable during the loan period.
- Beneficiaries must work full-time in the business as a condition of receiving the grant.
- In case of obligation default, the non-reimbursed part of the loan must be immediately repaid.
- Upon approval, an agreement with the MRC is required, detailing ownership and operational fidelity to the project.
- The financing term ranges from one to seven years, including any moratorium period if applicable.
- The loan may be repaid early without penalty.
- The entrepreneur(s) must guarantee the loan personally.
- The initiative concludes on December 31, 2024, with potential extension.