Financial aid

FINANCIAL ASSISTANCE

Fonds local d'investissement (FLI)

The FLI's goal is to foster the economic development and job creation activities by providing financial aid propitious to the start up of new companies and the expansion of viable businesses. This economic instrument allows the CLD to invest in local companies, including those of the socioeconomic area.

GENERAL SECTION

Eligibility:

Projects must be of a permanent nature, provide a significant economic impact on the MRC territory, generate and maintain long-lasting and good caliber jobs.
The business must be incorporated and carry its main activity in an admissible area, on the territory of the MRC of Memphremagog. Furthermore, the company's business plan must provide evidence of the project's feasibility and profitability within 3 years;
The company's endeavor (including those of socioeconomic) must be in manufacturing, in a tertiary driving activity, environment or tourism;
The company must have a capitalization level of at least 20% of its total assets;
Projects costs must be at least $20 000.

Financial aid:

Financial aid under the FLI is granted as a loan for an amount between $10 000 and $50 000;
The interest rate will not generally exceed the base rate + 2% and the loan must be reimbursed over a maximum period of five years through monthly installments;
Combined financial aid from the Quebec Government, Government of Canada and the CLD may not exceed 50% of all eligible expenses, except for socioeconomic projects where the financial aid may reach 80%;
The company may prepay all or part of the loan without any penalty;
An annual management fee of 1 ½% of the loan shall be applicable.

Eligible expenses:

Capital expenditures such as land, building, equipment, rolling material, cost of incorporation and other similar expenditures, except for any goodwill expenses; Acquisition of technology, software, patents and any other similar expenses, excluding R & D related expenses;
Required working capital as it relates to the company's operation, computed for the first year of operation.

TAKEOVER SECTION

Conditions for admission:

All young entrepreneurs 35 years old or less who wish to acquire at least 25% of an existing enterprise situated within the territory of the Politique nationale de la ruralité.

Financial aid:

The financial aid given will be in the form of an interest-free loan not exceeding $25 000. Furthermore, this loan will be supplied with a capital leave of reimbursement the first year.

Admissible expenses:

The admissible expenses are the shares of the enterprise in question and the professional service fees directly related to the transaction of the acquisition.

Documents to be provided to the CLD of the MRC of Memphremagog:

The request for financial aid form duly completed (available by clicking here); A copy of the business plan; A résumé of the promoters and a copy of their personal balance sheet; A nonrefundable deposit of $200 for the account set up;
Any other documents required by the CLD;