Local Investing Fund
The Local Investing Fund (LIF) seeks to invest in businesses located on the RCM des Sources territory and is committed to positively impact job creation or retention.
- Any business in start-up or expansion phase, including social economy businesses, whose projects are consistent with the investment policy directions.
- Any entrepreneur under 35 years of age who wishes to acquire a significant share (25% and up) of a local existing company. Such category seeks to encourage young promoters to take up existing companies.
- The project shall benefit from a permanent status and must generate significant economic spinoffs in the RCM des Sources territory.
- Each promoter’s down payment must reflect the project’s total allocated amount.
- The company’s head office must be located on the RCM territory.
- The project should help create or maintain permanent jobs.
- The project must show good prospects of financial viability.
- The project shall not foster competition within the territory.
- Capital expenditures such as land, building, equipment, machinery, mobile equipment, and any other expenses of the same nature except for goodwill costs;
- Purchase of technologies, softwares, patents, and any other expenses of the same nature but excluding research and development expenses;
- Working capital needs related strictly to the organization’s operations (calculated for the first operating year only).
Acquisition expenses for the target business ownership (voting shares or units) as well as professional service fees directly related to the take-on trade.
Nature of Financial Assistance
- The allocated financial assistance may include a loan, equity loan, guarantee, security, acquisition of bonds or other debt securities, interest in share capital, capital stock or any other form, excluding investments in the form of subsidies, interest holiday, capital holiday, sponsorship, donations, and other expenses of the same nature, in accordance with the investment policy.
- The financial assistance may include an interest-free loan not to exceed $25,000 and shall be coupled with a capital repayment holiday for the first year.
Amount of financial assistance
- The amount of financial assistance will be determined by the RCM according to the availability of funds. Furthermore, combined financial assistance granted by the Governments of Canada and Quebec as well as the RCM, cannot exceed 50% of the admissible expenses for every project, excluding projects from social economy enterprises where financial assistance can reach up to 80%.
- The amount of financial assistance will be determined by the RCM and may not exceed $25,000. The young promoter loan can reach up to 80% of all the admissible expenses. Furthermore, combined financial assistance granted by the Governments of Canada and Quebec as well as the RCM cannot exceed 80% of the admissible expenses.
- Project execution expenses are not admissible if they are submitted prior to the date of the official application reception by the RCM.
- The allocated financial assistance cannot be used for an organization’s operating expenses, debt servicing, future loans repayment, or financing a completed project.
- Any take-on trade of the company’s ownership is not admissible if it is submitted before the date of the official application reception by the RCM.
- The financial assistance requires the young entrepreneur to work full time for the company and own at least 25% of the company shares for the entire duration of the loan.