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|projects

The grant focuses on aiding entrepreneurs in business succession and acquisition activities to maintain economic diversity within the local economy of the Vallée-de-l’Or region. Eligible projects involve significant participation in existing business or full acquisition.

Acquisition of at least 25% of shares or assets in an existing business for succession purposes.
Projects aimed at transferring management and ownership of a business from an existing owner.
Full acquisition of a business, including obtaining 100% of its shares or assets.

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_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.

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Apply to this program

Secure Financial Support for Business Succession and Acquisition

The Fonds local d’investissement (FLI) 2024 program aims to facilitate the succession planning and acquisition of businesses, offering loans up to $250,000 to support the economic diversity and sustainability of enterprises in the MRC de la Vallée-de-l'Or.

In-Depth Analysis and Benefits of the FLI 2024 Grant Program

The FLI 2024 grant program is strategically designed to assist entrepreneurs and groups of entrepreneurs in taking over existing businesses or in acquiring full ownership of operational enterprises. This initiative is crucial for maintaining the vitality and heterogeneity of local economies, especially in regions such as the MRC de la Vallée-de-l'Or, where ensuring a smooth transition of business ownership is essential for economic resilience and community prosperity.

Under this program, financial assistance is provided in the form of interest-free loans up to $25,000 in succession scenarios, with potential additional funding available for acquisitions at a modest interest rate. This structure recognizes the complexity and financial burden often associated with succession or acquisition. The focus on interest-free loans for succession initiatives highlights an understanding of the need to reduce the financial barriers that may inhibit potential successors from moving forward with transitions in ownership.

The grant takes into account various critical factors in determining eligibility and the structure of financial assistance. By requiring a minimum investment of 15% from the entrepreneur, this program ensures that candidates demonstrate a significant commitment to undertaking and managing business ownership. This requisite participation underscores the importance of personal investment and risk in ensuring the viability and success of the enterprises involved.

Furthermore, the program stipulates that applicants must be actively engaged in running the acquired business on a full-time basis, specifically dedicating at least 35 hours per week. This requirement aligns with the program’s goals of ensuring that new owners are not only financially invested but also actively involved in the operational aspects that drive business success. It also establishes a direct connection between the owner’s efforts and the business’s outcomes.

In promoting local economic stability, the FLI 2024 grant places considerable emphasis on preserving employment opportunities, maintaining business operations within the community, and encouraging new business strategies that optimize existing assets. Moreover, the combination of financial incentives and low-interest loans offers flexibility and relief that can be pivotal in the transition phase, allowing new owners the time and financial space necessary to integrate fully and implement their vision effectively.

Through meticulous qualification criteria, the application process is designed to ensure that only those candidates who are prepared and capable of positively impacting the local economy receive support. Additionally, this program equips entrepreneurs with the financial tools required to sustain and potentially expand business operations, all while ensuring compliance with program requirements.

Ultimately, the FLI 2024 grant program is an exemplary model of how local government initiatives can support economic development. By focusing on business succession and acquisition, it addresses the dual challenges of preserving existing businesses and fostering new ventures. It is a critical investment into the future of local economies, ensuring that enterprise continues to thrive in the region.