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Succession
With our SMB Financial product, 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.
Also, your succession plan must involve transferring over 50% of the voting or participating shares of your company, or transferring the bulk of its assets, to the following persons: - A family member;
- A manager or employee with your company;
- Any other individual or company in Québec.
A shareholding workers cooperative (SWC) can also obtain financing for a succession project through the Group Entrepreneurship program, regardless of the sector of the company in which it invests. Eligible Projects - Repurchase of your shares by your company;
- Purchase of shares by another company;
- Purchase of the bulk of assets by another company.
In addition to the above-mentioned projects, acquisition of capital assets or other assets as well as working capital enhancement are also eligible. Special Requirements - Your business must have a sound financial structure, adequate management, qualified staff and a solid organization.
- The succession plan must not be of a speculative nature.
* Special conditions may apply. Contact one of our advisors to learn more. | FINANCING DETAILS We can provide a loan or loan guarantee. Our loan guarantee is a repayment guarantee of the net loss on a loan granted by the 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 guarantee can cover up to 70% of the net loss or 75% for projects in outlying regions.**
- The loan amount provided by the financial institution may cover up to 50% of the net costs of the project.
- For loans directly granted by Investissement Québec, the amount provided can cover up to 50% of the total net project costs.
- The interest rate on the loan is set by the financial institution.
- Interest is payable to the financial institution starting 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—Iles-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 loan, submit your application to an Investissement Québec advisor. August 2006 |
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