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
*Please note that the Transition Fund will soon be coming to an end. Our team will be happy to help you find the best financial solution for your project.
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
- Contact our team to validate your proposal’s eligibility and the availability of funds.
- Send us the requested documents and the $200 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
- 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