Group Entrepreneurship

With the Group Entrepreneurship program, you can obtain a loan or loan guarantee.

ELIGIBILITY CRITERIA*   Eligible Organizations Your organization is eligible if it comes under one of the following categories: Cooperative undertaking: cooperative, federation or confederation of cooperatives governed by the Quebec Cooperatives Act; Subsidiary of a cooperative undertaking: a legal person of which a cooperative undertaking holds more than 50% of the issued capital stock with full voting rights and the right to elect the majority of the members of its board of directors; Non-profit organization: a non-profit legal person constituted under Part III of the Quebec Companies Act that meets the following characteristics: Its main objective must be to produce goods or services for its members or the community; Its operating methods must rely on democratic management and seek individual and group participation, empowerment and responsibility; Its members and the members of its board of directors may include persons designated by the government or a public or quasi-public organization that reports to the government; however, said members must remain a minority and cannot exert control over the organization; It derives most of its revenue from commercial activities carried out with private; or public-sector consumers.   Eligible Projects Business start-up; Development or expansion; Consolidation.   Special Requirements You must demonstrate that the financing granted will serve to develop an appropriate financial structure for your undertaking. Your organization must have adequate management, qualified staff and a solid organization, and must have access to a viable market.   *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, letter of credit or any other form of financing granted by a financial institution.   Terms and Conditions The amount of the loan or loan guarantee provided by Investissement Québec cannot exceed 75% of project-related expenditures. The loan guarantee may cover up to 66.66% of the net loss of a line of credit or 75% of the net loss of a loan, letter of credit or any other form of financing. The maximum duration of the guarantee is 5 years for lines of credit and 10 years for any other form of financing. Companies located above the 55th parallel and those in the housing sector are considered exceptions, for which the duration of a guarantee can extend to 15 years and 25 years respectively.   Generally, the interest rate is variable, as established by the financial institution. However, upon the request of the company, it may be fixed. Interest is payable to the financial institution from the first loan disbursement. In some cases, interest payments may be deferred for 12 months. However, such deferred interest may not exceed 10% of the loan amount. It is possible in some cases, such as for a business start-up, to defer the repayment of the capital amount until after completion of the project. The usual securities are required based on the financing granted.   Fees Commitment and guarantee fees depend on the nature of the project. Guarantees are usually required. 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