Pilot project
Social Economy Innovation and Growth Fund (FICÉS)
SPECIFIC COMPONENT OF THE TRANSITION FUND
MAXIMUM AMOUNT OF $250,000 PER ENTERPRISE
The FICÉS offers all the necessary flexibility to respond to the needs of projects with strong potential for growth and/or innovation.
This revenue-based financing was developed to support social economy enterprises through their pre-startup, startup or expansion phases.
The amount of the investment is determined according to:
- The size of the enterprise and the scope of the project
- The project’s projected revenue
The organization’s borrowing capacity.
OBJECTIVS
- Support the emergence of innovative projects
- Drive the growth of existing enterprises
- Ensure the expansion of social economy enterprises
CHARACTERISTICS
- Financing is based on the enterprise’s revenues and is complementary to other sources of solidarity financing.
- Investment duration and repayment is adapted to the enterprise’s rate of growth.
- Flexible repayments that never exceed a pre-established ceiling:
- Variable portion determined as a function of projected revenues (royalties);
- Fixed portion determined as a percentage of the initially invested capital;
- Possibility of making additional payments (total or partial) without penalty;
- Possibility of reducing the amount owed through accelerated repayment.
- Commitment fee: 1.5% of authorized total
- Application fee of $300 is deducted from commitment fee.
PRIORITIZED STRATEGIC SECTORS
- Demographic challenges through human services and collective recovery
- Innovation and technology
- Food self-sufficiency
- The circular economy and the environment
ELIGIBLE PROJECTS AND EXPENDITURES
The enterprise must demonstrate the growth and/or innovation potential of its project and the relevance of securing revenue-based financing.
Enterprises must, depending on the type of project,
- Have developed a minimally viable, functional product that successfully addresses the problem in question (ready for the commercialization phase);
- Own the intellectual property or the exclusive, unlimited and irrevocable commercialization rights for all intangible assets derived from an innovation project.
The eligible expenditures for the project are
- Working capital needs
- Hiring of internal or external human resources
- Expenditures related to project deployment (improving a product/service, commercialization…)
INELIGIBLE EXPENDITURES
- The exclusions listed by the RISQ on its Eligibility page
HOW TO APPLY
STEPS
- Contact our team to validate your proposal’s eligibility
- Send us the requested documents and the $300 application fee
- An analyst reviews your proposal/discussion/meeting
- RISQ’s financial analyst prepares a report
- 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, signing of RISQ’s offer of investment
- Validation of compliance with preconditions contained in the offer of investment, and disbursement of loan
- Follow-up by RISQ until loan has been fully repaid.
DOCUMENTS
- Signed Déclarations et consentements [Representations and consent] form
- Cheque for $300 made out to RISQ to cover the application cost
(deductible from commitment fee) - Business plan or project presentation document describing its purpose, with an operational plan for its deployment.
- Resolution of the enterprise authorizing the individual who signed the application (link)
- Forecast monthly cash budget for at least 12 months
- Financial forecasts for at least five years and three scenarios: pessimistic, realistic and ambitious
- Copy of letters patent (NPO) or charter (co-op)
- Copy of by-laws (including borrowing by-law) or internal rules of governance
- Documentation on the group that is initiating the project, including résumés for the human resources required
- Studies demonstrating the potential for growth and/or innovation (market, feasibility, or other).
Other documents, if applicable
- Copy of most recent annual activity report
- Copy of annual financial statements for the last two years
- Recent interim financial statements (including list of accounts receivable and payable)
- Financial statements of affiliated enterprises
- Copy of financial partners’ confirmations
- Submissions related to the project
- Other relevant documents: additional studies, letters of support or intent, etc.
Additional documents may be required to complete our assessment of your application.