MRC La Vallée-de-l'Or — Local Investment Fund FLI – Succession Stream

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.

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.

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.