Working Capital for Growth Purposes

With the SMB Financial program, you can obtain a loan or loan guarantee.

ELIGIBILITY CRITERIA*   Eligible Businesses   Your company is eligible if it meets the following conditions: It has been in operation for at least three years. It operates in a sector other than retail or wholesale trade, the restaurant industry or any other retail-related trade or services to individuals. It recorded sales of at least $500,000 the past fiscal year. It shows a constant growth in sales of at least 10% a year. It has funds available (positive for the last fiscal year or cumulative positive over the last three fiscal years).   It conducts most of its activities in Quebec.   Eligible Projects Increasing activities; Securing a full order book; Developing business.   Special Requirements Your company must submit a cash budget clearly demonstrating the unmistakeable need for additional working capital.   Your company must have a sound financial structure, adequate management, qualified staff and a solid organization.   *Special conditions may apply. Consult one of our advisors to learn more.

FINANCING DETAILS   We can provide a loan or loan guarantee. Our loan guarantee is a repayment guarantee on the net loss of a loan granted by a financial institution.   Terms and Conditions The minimum amount of the loan guarantee or loan provided by Investissement Québec is $50,000. The maximum duration for financial assistance is seven years. The loan guarantee can cover up to 70% of the net loss, or 75% for projects in outlying regions.** Depending on the nature of the project, the loan amount provided by the financial institution may cover up to 100% of all project-related expenditures. For loans granted directly by Investissement Québec, the amount provided may cover up to 75% of the total project costs. The interest rate on the loan is set by the financial institution. Interest is payable to the financial institution from the first loan disbursement. It is possible to defer repayment of the capital amount until after project completion. The usual securities are required based on the financing granted.   * Outlying regions include: Abitibi-Témiscamingue, Bas-Saint-Laurent, Côte-Nord, Gaspésie—Îles-de-la-Madeleine, Mauricie, Nord-du-Québec, Outaouais (excluding Aylmer, Hull and Gatineau municipalities) and Saguenay—Lac-Saint-Jean.   Fees Commitment and guarantee fees depend on the nature of the project. To find out more about the cost of financing your project, talk to an Investissement Québec advisor.

PROCEDURE   Step 1 Contact an Investissement Québec advisor , who will answer your questions and recommend the product that best suits your needs.   Step 2 The advisor will help you draw up a list of the information you must provide: business plan, nature of the project, financing sought, planned expenses, marketing plan, guarantees, etc.   Step 3 For loan guarantees, submit your application to the financial institution of your choice. The institution will consult us to review your file; we will then contact you. For direct loans, submit your application to an Investissement Québec advisor.       August 2006