Small and Medium Business Financial - General Section

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

ELIGIBILITY CRITERIA*   Eligible Businesses Your business is eligible if it operates in one of the following sectors: Manufacturing; New economy (biotechnology, pharmaceutical industry, information technology, aeronautics and aerospace); Certain computer and software service activities; Research laboratories; Tourism; Recycling; Environmental restoration; Waste recovery and processing; Call centres; Aquaculture, sea farming and marine biotechnology; Horticultural specialties.   Eligible Projects Start-up or expansion; equipment purchase; building construction or expansion; increase in production capacity; modernization or increase of working capital; Exporting (sales outside Quebec); Market development; Innovation: R&D;, design or marketing of a new service or product; Consolidation or strategic alliance; Succession.   Special Requirements Your business 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, line of credit or letter of credit granted by a financial institution.   Terms and Conditions The minimum amount of the loan or loan guarantee provided by Investissement Québec is $50,000. The maximum duration for financial assistance is 10 years. The loan guarantee can cover up to 80% of the net loss. Depending on the nature of the project, the maximum amount provided by the financial institution may cover up to 100% of project-related expenditures. The interest rate is set by the financial institution. Interest is payable to the financial institution starting from the first disbursement loan. It is possible to defer repayment of the capital amount until after project completion. The usual securities are required based on the financing granted.   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.

SPECIFIC SECTIONS   SMB Financial also includes a series of specific sections, which vary depending on the nature of the project or business activity. For more information on the terms and conditions of each section, refer to the following sections:   Strategic Alliance Export Credit Improving Productivity Interim Financing of Tax Credits International Conventions Market Development Outside Québec Technological and Design Innovation Working Capital for Growth Purposes Succession

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