How much funding can be received?

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.

grant_single_labels|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.

grant_single_labels|projects

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.

grant_single_labels|admissibility

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.

grant_eligibility_criteria|who_can_apply

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.

grant_eligibility_criteria|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.

grant_eligibility_criteria|zone

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.

grant_single_labels|criteria

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.

grant_single_labels|register

Here are the steps to submit an application for this grant:

Step 1: Verify Eligibility
Ensure you meet all eligibility criteria, such as Canadian citizenship, Quebec residency, and the requirement to work full-time in the business.
Confirm the project meets the requirements for succession or acquisition, including a minimum 25% ownership stake.
Step 2: Gather Required Documentation
Prepare documents showing ownership or intended acquisition details, such as agreements with current business owners.
Collect evidence of a minimum 15% financial contribution to the project.
Ensure you have documents verifying the professional services directly related to the acquisition transaction.
Step 3: Contact the MRC for Guidance
Reach out to a counselor at the MRC through the provided contact numbers (819 825-7733 or 819 874-4333) for further clarification and assistance.
Step 4: Prepare Financial Plan
Develop a financial plan that outlines the project costs, funding requirements, and expected financial contributions.
Step 5: Draft Project Proposal
Write a comprehensive proposal detailing the succession or acquisition plan, including objectives, timelines, and strategic vision.
Step 6: Submit Application
Submit the completed application package, including all required documents, directly to the MRC.
Ensure submission occurs before any transaction activity to qualify.
Step 7: Await Confirmation and Further Instructions
Once submitted, await confirmation from the MRC regarding your application status.

grant_single_labels|otherInfo

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.