Loan up to $100,000 over 2 years, or $50,000 per year
$100 application fee
Whether your collective enterprise is new or existing, our Pre-Startup loan supports your enterprise to prepare and implement your projects — expansion, innovation, or development of new markets and business opportunities.
The pre-startup phase includes all the steps of developing an idea into a project, leading to the birth of a new enterprise or, for an existing enterprise, a new project.
You can then apply for financing from our Capitalization component, which offers a maximum of $50,000 for a startup project.
- Support the emergence of new enterprises
- Foster the development of existing enterprises
- Ensure the continuation of social economy enterprises
- No capital repayment during the pre-startup period, or up to 2 years
- Interest holiday during pre-startup period
- No personal guarantees required
- Capital without a guarantee
- Investment is disbursed in several payments based on the enterprise’s needs.
- Commitment fee: 1.5% of authorized total, payable when investment is disbursed. Application fee of $100 is deducted from commitment fee.
Eligible pre-startup projects have made no sales prior to application date except those made during market tests or pre-marketing activities.
- Hiring of internal human resources needed to carry out the project
- Fabrication of prototypes and conducting a market test
- Costs related to rental of premises, computer equipment, telecommunications, supplies, and other operating costs
- Travel, representation, and other costs deemed essential to the project
- Consultant fees up to $5,000 to carry out additional studies needed to finalize the business plan
- Research and development expenses for existing enterprises
- Research or partnership development, creation of a consortium to bid for contracts
- Canvassing the market (negotiations with suppliers and potential clients)
- Preparation of a round of financing and contacts with various social economy funding sources.
- Market or feasibility study
- Expenses related to the acquisition, construction, or renovation of a property
- Costs related to incorporation
- Costs incurred prior to the financing application
- Normal operating expenses of an existing enterprises
HOW TO APPLY
- Contact our team to validate the eligibility of your proposal
- Send us the requested documents and the $100 application fee
- A RISQ financial analyst reviews the application
- Presentation of analysis report to the Investment Committee. Depending on the committee’s decision, committee members recommend that the Board of Directors accept or refuse the financing request; occasionally they recommend changes.
- If accepted, RISQ’s offer of investment is signed and the first disbursement is made.
- Repayment when the overall financing plan is completed and RISQ has commenced follow-up
- Signed Déclarations et consentements [Representations and consents] form
- Cheque for $100 made out to RISQ to cover application cost (deductible from commitment fee)
- Copy of letters of patent (NPO) or charter (co-op), including borrowing by-law
- Copy of a résolution de l’entreprise authorizing the application signatory to sign all official and legal documents
- Copy of a resolution in which the enterprise confirms its down payment and undertakes to assume responsibility for cost overruns
- Business plan or project presentation document describing its social purpose, with an operational plan for its deployment
- Documentation on the group that is initiating the project, including résumés for the human resources required during the pre-startup phase
- List of current board of directors, and description of their roles and competencies
- Studies that have been conducted (market, feasibility, or other)
- Forecast monthly cash budget for the entire pre-startup period
- Estimated cost of project implementation and planned sources of financing
- Estimated annual revenues and expenses for first three years following project startup
- Support letters, if applicable
- Number of jobs created/maintained (including internships and work integration positions)
- For existing enterprises with a new project: audited financial statements for the past two years, recent interim report, and activity report.
- Payment at startup, in other words, at the moment of the first round of financing, first sales, or after expiration of the 2-year pre-startup deadline
- Repayment by fixed payments (capital and interest) in accordance with a repayment agreement made after the above-mentioned deadlines:
- Term of no more than 10 years after pre-startup phase
- Fixed interest rate for the duration of the loan
- Repayment of capital and interest in accordance with agreed on time line
- Possibility of a capital repayment holiday of up to 5 years
- Early repayment without penalty at any time with advance written notice of at least 90 days