Regional Solidarity Funds (QFL)

The Regional Solidarity Funds (QFL) are limited partnerships that invest in businesses by taking an equity position or granting loans to help get them off the ground and grow. In so doing the FRS helps create, maintain or preserve jobs in their respective regions.

The Solidarity Fund (QFL) is a development capital company that relies on the savings and solidarity of the Quebec population. Its main mission is to help create and maintain jobs in Quebec by investing in small and mid-sized companies. One of its objectives is also to ensure that shareholders receive a fair return. No other institution is required to respect this balance, which bespeaks the very nature of a labour-sponsored development capital firm.

Eligibility Criteria

Private for-profit companies operating primarily in the manufacturing and services sectors, doing or planning to do business in the regions and that are:

• in the start-up stage;
• in the early stages of development;
• in a growth or turnaround stage.

Restrictions: Financial services, real estate, retail, oil and mining exploration and prospecting companies are not eligible.

Summary

Each regional fund can invest from $50,000 to $500,000 per company or group of companies in the form of an ownership stake, an equity loan, a guarantee or a surety. Investments can reach $750,000 in subsequent financing rounds.

The Solidarity Fund (FQL) is active in almost all sectors of the Quebec economy. A true economic lever, the Funds and its network have helped create or maintain over 100,000 jobs, as well as launch, grow or turn around nearly 2,000 companies in all sectors of the economy.

Since its inception in June 1983, the Fund, whose assets amounted to $5.2 billion at December 31, 2003, has become a hub of knowledge, resources and contacts for Quebec companies and an invaluable player in the Quebec economy.

Quebec Contact(s):
Fonds de Solidarité FTQ
Suite 200
545 Crémazie East Boulevard
Montréal, Quebec  H2M 2W4
Telephone: (514) 383-8383 ext. 5056
Fax: (514) 850-4815
Toll-free (information): 1-800-361-5017
Web site: http://www.fondsftq.com/internetfonds.nsf/VWebTFR/PmeReg