Commit to being part of the recovery

Adapt │ Transform │ Recover

TRANSITION FUND

Maximum amount of $150,000 per enterprise

Created thanks to funding from the Ministère de l’Économie et de l’Innovation, this fund offers a loan to support projects developed by existing social economy enterprises to help them recover from the COVID-19 health crisis.

Collective enterprises must clearly define their recovery project and show how it is adapted to the new post-COVID-19 reality.

  • Business transformation
  • Creation of new products/services
  • Innovation in internal and/or external processes

OBJECTIVES

  • Support the recovery of existing enterprises
  • Support the development of new projects for existing enterprises
  • Ensure the continuation of social economy enterprises

CHARACTERISTICS

  • Up to 100% of the project’s overall financing package
  • Funding is complementary to the solidarity finance ecosystem
  • No guarantee required
  • Investments lasting from 5 to 10 years
  • Complete capital and interest repayment holiday for two years
  • Monthly payments beginning in the third year
  • Early repayment without penalty at any time with advance written notice of at least 90 days.
  • Fixed interest rate increases annually (from 0 to 6%)
Year 1 2 3 4 5  to 7 years
Interest Rate 0% 0% 2% 4% 6%
  • Commitment fee: 1.5% of authorized total (minimum of $300).
  • Application fee of $200 is deducted from commitment fee.

PRIORITY SECTORS

Based on the four priorities established by the Plan d’action gouvernemental en économie sociale 2020-2025 (PAGES)

  • Demographic challenges through human services and collective recovery
  • Innovation and technology
  • Food self-sufficiency
  • The circular economy and the environment

ELIGIBLE EXPENDITURES

Companies must show that their project is responding to a need to transform and adapt to the new post-COVID reality. Eligible expenditures must be related to the recovery project.

  • Working capital needs
  • Hiring of human resources (internal or external) required for the project
  • Capital expenses, such as:
    • equipment and machinery
    • vehicles
    • technological acquisitions
    • other similar expenses.
  • Possibility of repaying the Canada Emergency Business Account loan in the context of a recovery project.
  • All other expenditures related to implementing the recovery project

INELIGIBLE EXPENDITURES

  • Costs related to improving the company’s financial situation
  • Costs incurred prior to the financing application
  • Normal operating expenses of existing enterprises
  • The exclusions listed by the RISQ on its Eligibility page

HOW TO APPLY

STEPS

  1. Contact our team to validate your proposal’s eligibility
  2. Send us the requested documents and the $200 application fee
  3. An analyst reviews your proposal/discussion/meeting
  4. RISQ’s financial analyst prepares a report
  5. 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.
  6. If accepted, signing of RISQ’s offer of investment
  7. Validation of compliance with preconditions contained in the offer of investment, and disbursement of loan
  8. Follow-up by RISQ until loan has been fully repaid.

DOCUMENTS

  • Completed and signed application form
  • Signed Déclarations et consentements [Representations and consent] form
  • Cheque for $200 made out to RISQ to cover the application cost
    (deductible from commitment fee)
  • Previously conducted studies (market, feasibility, viability and other)

Other documents

  • 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
  • Resolution of the enterprise authorizing the individual who signed the application (link)
  • Copy of financial partners’ confirmations
  • Copy of letters of patent (NPO) or charter (co-op)
  • Copy of by-laws (including borrowing by-law) or internal rules of governance
  • Forecast cash budget and financial forecasts
  • Submissions related to the project

Other relevant documents

  • Support letters, letter of intent
  • Studies that have been conducted
  • Other relevant documents

OUR OTHER FINANCIAL PRODUCTS

TECHNICAL ASSITANCE LOAN

VALIDATE YOUR IDEA

EMERGENCE LOAN

MOVING FROM IDEA TO PROJECT

CAPITALIZATION LOAN

START UP, DEVELOP, ENSURE CONTINUITY

SOCIAL ECONOMY INNOVATION AND GROWTH FUND – FICES

DEVELOP YOUR ENTERPRISE’S POTENTIAL

CES TRUST LOAN

NEED MORE FINANCING

OBTAIN FINANCING TO MATCH YOUR
STAGE OF DEVELOPMENT

STARTING UP

TURNING IDEAS INTO ACTION!

DEVELOP

REINFORCE AND STABILIZE YOUR OPERATIONS!

PUISQUE CHAQUE PROJET EST UNIQUE…
CONTACTEZ-NOUS
ou le RELAYEUR DE VOTRE RÉGION!

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