Loan up to $100,000
Emergence loan supports your new enterprise to prepare and implement your pre-start up project.
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 structuring projects
- Ensure the deployment of social economy enterprises
- Capital without a guarantee
- No capital repayment during the pre-startup period, or up to 3 years
- Interest holiday during pre-startup period
- Interest rate reduction if the project is completed on time
- Investment is disbursed in several payments based on the enterprise’s needs
- Early repayment without penalty at any time with advance written notice of at least 90 days
- Commitment fee: 1.5% of authorized total.
- 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 and/or extern human resources needed to carry out the project :
- External resources: maximum period of one year (up to $50,000) with a supporting expertise transfer plan.
- Internal resources: for the duration of the pre-start-up of the project.
- Fabrication of prototypes and conducting a market test
- Costs related to rental of premises, telecommunications, supplies, and other operating costs
- Purchase of material and computer equipment (up to $5,000)
- Travel, representation, and other costs deemed essential to the project (up to $10,000)
- Consultant fees up to $10,000 to carry out additional studies needed to finalize the business plan
- Research and development expenses for existing enterprises
- Other preparatory and/or project implementation expenses.
- 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
- The exclusions determined by RISQ contained in the Eligibility page
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.