Local Investment Fund (FLI)

For-Profit Businesses

Admissibility Criteria

  • Provide a business plan covering the first three years of operation showing that the business to be created has a good possibility of being viable and profitable;
  • Lead to the creation of jobs;
  • Be partially financed by a capital outlay of the entrepreneur, or the business, by at least 10% of the value of admissible expenditures;
  • The project must not displace jobs because of heavy competition in the economic sector concerned;
  • Show experience or competency relative to the project;
  • Be liberated from any bankruptcy (must provide certificate of liberation);
  • Not be implicated in any litigation or judicial procedure;
  • The principal activity of the business must be within the territory of the Pontiac MRC.

Admissible Expenses

  • Capital expenditures such as land, buildings, equipment, machinery, rolling stock, incorporation fees and all other expenses of the same nature with the exception of goodwill.
  • The acquisition of technology, computer programs, patents and all other expenses of the same nature, with the exception of research and development activities.
  • Cash flow needs related strictly to the operating needs of the business during its first year of operation.
  • Subject to the approval of the Investment Committee, the following expenses are admissible: professional, consultant, specialist and expert fees, promotion and marketing costs.

Restrictions

Expenditures related to the project but made prior to the receipt by the CLD of the official request for assistance, are not admissible. The financial support given cannot be used for operating funds after the first year, for servicing the debt, for repaying loans or for financing of a project already in place.

 

Nature of the aid

  • Amortisation – maximum 10 years;
  • Interest rate – preferential rate plus premium of risk up to 3%;
  • The loan can cover up to 50% of the investment project. The amount borrowed can not be less than $5,000.
  • The combined financial help from the Quebec government and the Federal government cannot exceed 50% of the admissible expenses.

 

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