SMB Financial – Strategic Alliance

This financial assistance aims to maintain or improve the competitive position of Québec enterprises, particularly within the context of acquisition projects, business combinations, or mergers.

It takes the form of a repayment guarantee for the net loss on a loan granted by a financial institution, up to a maximum of 70%.

Eligibility Criteria

The enterprise must:

• Operate in one of the following sectors: manufacturing, tourism, recycling, environmental restoration, call centres, new economy, including high value-added information technologies, certain computer and software service activities, aquaculture, sea farming, marine biotechnology, certain horticultural specialties and research laboratories;
  
• Have a financial structure, quality of management, professional and technical staff, and production and commercialization organization ensuring the profitability of the project and the competitiveness of the company;
  
• Ensure that a controlling interest in the company is held by Québec residents;
  
• Keep jobs in Québec if one of the companies is located outside Québec.

Eligible Activities

• Business acquisitions;
• Business combinations or mergers;
• Any other agreement entered into between businesses to enable them to become more competitive.

Summary

Investissement Québec’s solution:

• Repayment guarantee of the net loss on a loan granted by a financial institution, up to a maximum of 70% (75% for peripheral regions).
• Minimum amount of financing: $50,000.
• Maximum term of financing: ten years from the date of the first disbursement.
• A direct loan may be authorized in exceptional cases.

Conditions of the term loan:

• Maximum amount of loan: 75% of direct project expenses, including required working capital (which may equal the other eligible expenses).
• Fixed or variable interest rate.
• Possible provision for delay in the repayment of capital.
• Repayment of capital generally fixed.
• Specific securities on project assets and a universal hypothec on other assets subject to securities granted in favour of existing lenders.

For more information, consult the Web site at http://www.investquebec.com/en/index.aspx?page=1277

Quebec Contact(s):
Investissement Québec
Suite 500
393 St-Jacques
Montréal, Quebec  H2Y 1N9
Toll-free (information): 1-866-870-0437
Web site: http://www.investquebec.com/en/index.aspx?