Regional Economic Intervention Fund (FIER)

This document was prepared with the information on the Investissement Québec’s Web site.

The Fonds d’intervention économique régional (FIER) is a development fund that helps companies at the start-up and development stages secure financing (equity or quasi-equity). The Fund also supports the creation of sector-based funds and the execution of development projects, chiefly in the regions. The various FIER funds invest predominantly in share capital.

Eligibility Criteria

Variable, depending on the component.

Eligible Activities

Companies in the regions either at the start-up or expansion phase.

Summary

The FIER's capitalization is both (public and private).

Through a IQ subsidiary, the government will inject $318 million; the Fonds de Solidarité des travailleurs du Québec (FTQ), $50 million; Capital régional et coopératif Desjardins, $25 million, and the Fonds de développement de la CSN pour la coopération et l'emploi (Fondaction), $15 million. With additional private investments from the regions to round out each FIER component.

In conjunction with the other private or public business financing and investment mechanisms, the FIER will work to generate profits and share risks with private investors. Contributions from the regions will come from existing agencies, businesses or funds rather than individuals.

The FIER has three components:

1.1 Fonds-Support

The FIER-Support will be put into place under the direction of the Regional Conferences of Elected Officials (CREs), which will designate the management entity. The government's capital outlay could be as high as $42 million. For each dollar invested by the region, the government will invest two, for a total of as much as $63 million to be used to support business initiatives, at up to $250,000 per business, in the form of equity or quasi-equity.

The government will invest a maximum of $2 million in each FIER-Support set up by the CRE which, for their part, will collect $1 million from public and private partners in the region.  

1.2 FIER-Region

Regional investment funds are designed to help businesses start up and develop their activities. These funds are managed by limited partnerships in which the private sector holds a majority.

The government's capital outlay could be as high as $186 million, $30 million of the total government contribution will be allocated on a priority basis to the following six regions: Gaspésie–Îles-de-la-Madeleine, Outaouais, Centre-du-Québec, Laurentides, Côte-Nord and Nord-du-Québec. For each dollar invested by the private sector, the government injects $2. The total envelope of the funds can reach $279 million.

The maximum assistance amount is $750,000 per company, in the form of equity or quasi-equity, for a Fund with maximum subscribed capital of less than $15 million. For Funds with maximum subscribed capital of $15 million and more, the maximum investment is $1 million.

1.3 FIER-Partners

The FIER-Partners will create sector-based funds and will also include a funding tool to support structuring projects in the region.

The government will contribute $80 million to this component. The Fonds de Solidarité (FTQ), Capital régional et coopératif Desjardins and Fondaction CSN will invest another $80 million.

In the sector-based funds, the FIER will invest $1 for every $2 invested by the private sector. The government will allocate a maximum of $80 million to these funds, up to $240 million.

The component dedicated to structuring projects will receive $100 million.

The FIER-Partners component will be administered by a limited partnership responsible for managing the sector-based funds and the structuring projects component.

Check out the list of funds that are active in your region: http://www.investquebec.com/en/index.aspx?page=1918

For more information, consult the Web site at http://www.investquebec.com/en/index.aspx?page=1771