Strategic Support for Investment Program (PASI)

We can provide you with a loan, interest-free loan, equity-type loan, loan with interest repayable through royalties or contribution repayable through royalties.  We can also provide a loan guarantee. Lastly, if no other form of financing is possible, we can provide a non-repayable contribution.

ELIGIBILITY CRITERIA*   Eligible Businesses The program targets for-profit companies as well as groups of businesses in the following sectors: Manufacturing; Software publishing; Call centres; Tourism—Entertainment and recreation services; Tourism—Accommodation; Environmental restoration; Waste recovery and processing.   Please note that in the case of tourism, projects for the addition of lodging units must be carried out outside the urban zones of Montréal, Québec City and Hull and include a significant proportion of recreation-tourism investment.   Eligible Projects Investment that targets the consolidation of a sector in which Québec has competitive advantages and that will not harm existing companies. Development of products that are distinctive because of their innovative nature and commercial potential.   Special Requirements Your company must have a sound financial structure, adequate management, qualified staff and solid organization. The project must be completed within three years in the case of an investment project or within five years in the case of a product development project.   * Special conditions may apply. Contact one of our advisors to learn more.

FINANCING DETAILS   We can provide a repayable contribution or a loan guarantee. Our loan guarantee is a repayment guarantee on the net loss of a loan, line of credit or letter of credit granted by a financial institution.   Terms and Conditions—Investment Project The loan guarantee may cover 70% of the net loss.  The minimum cost of the project is $5 million. If there are no capital expenditures, the minimum cost of the project must include an increase of at least $5 million in payroll during the first three years of implementation of the project. The financial assistance provided by governments cannot exceed 50% of the total cost of the project. The financial assistance is provided for a maximum of 10 years. The interest rate on the loan is set by the financial institution in the case of a guarantee or by Investissement Québec in the case of a repayable contribution. It is possible to defer repayment of principal. The usual security is required depending on the financing.   Terms and Conditions—Product Development Project The financing consists of a loan with interest repayable through royalties or a contribution repayable through royalties. The minimum cost of the project is $2 million, excluding expenditures giving rise to Québec refundable tax credits. The financial assistance provided by governments cannot exceed 50% of the total cost of the project. The financial assistance is provided for a maximum of 10 years. It is possible to defer repayment of principal. The choice of projects is determined as part of a call for projects.   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 direct you to the product that best suits your needs.   Step 2 The advisor will help you draw up a list of the information required: business plan, nature of the project, financing sought, planned expenses, marketing plan, guarantees, etc.   Step 3 Submit your application to an Investissement Québec advisor.       July 2007