Financing your project based
CAPITALIZATION LOAN
Total of $20,000 to $50,000 per project,
maximum $100,000 per enterprise
$200 application fee
Financial assistance under our Capitalization program, complements other sources of financing and provides support for your project in the forms of several types of investment :
- Direct loan with no guarantee to complete your down payment
- Bid or performance surety bond to enable you to bid for contracts
- Loan guarantee or line of credit to obtain the financing you need without putting up your assets as a guarantee (authorized for a maximum of 5 years)
- Preferred shares (co-op) or solidarity bonds (NPO), determined on a case by case basis
OBJECTIVES
- Support the emergence of new enterprises
- Foster the development of existing enterprises
- Ensure the continuation of social economy enterprises
CHARACTERISTICS
- Additional financing
- Flexible repayment terms
- Possibility of a capital repayment holiday of up to 5 years
- Investments lasting from 2 to 7 years
- Flexible interest rate determined according to the level of risk of the investment (can vary between 5 and 8%)
- Fixed interest rate during repayment period
- Commitment fee: 1.5% of authorized total, payable when investment is disbursed. Application fee of $200 is deducted from commitment fee.
ELIGIBLE EXPENDITURES
- Working capital needs
Expenses related to development:
- Professional fees
- Expert advice costs
- Other costs incurred to cover the services of consultants and specialists needed to conduct studies
Capital expenses:
- Land
- Building (acquisition or renovation) or improvement of facilities
- Equipment and machinery
- Vehicles
- Support for client accounts
- Acquisition of a business or business assets
- Ridership (eligible with an assessment of value by a recognized independent expert)
- Other similar expenses, except outlays related to volume of sales
- Acquisition of technological materiel, software or software packages, patents, other similar expenses.
HOW TO APPLY
STEPS
- Contact our team or the designated representative in your region to validate your proposal’s eligibility
- 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
- Signed declarations et consentements [Representations and consents] form
- Cheque for $200 made out to RISQ to cover application cost
(deductible from commitment fee)
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
- 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
- Studies that have been conducted (market, feasibility, and other)
- Submissions related to the project
- Support letters, letter of intent (if applicable)
- Business plan including :
- Description of project
- Cost of current project and requested financing
- 3-year financial forecasts
- Forecast monthly cash budget for 12 months
- Names of the board of directors with a short description of their roles and competencies
- Résumés of project promoters (management team)
- Number of jobs created/maintained (including work integration positions)
Other relevant documents
- Written confirmations of other sources of financing (loans and grants)
- Copies of long-term business agreements (supply, distribution, exclusivity, specific discount, purchase commitment, etc.)
- Order book
- Unit cost price and sales price
- Other relevant documents
For a real estate project
- Duly signed and valid offer to purchase (in the case of acquisition of capital assets) or title to property
- Property valuation report (compulsory) including market value and asset value
- Phase 1 environmental study (compulsory)
- Phase II environmental study (if applicable)
- Location certificate
- Offer of professional services
REPAYMENT
- By fixed monthly payments (capital and interest) for the duration of the loan, determined in accordance with the enterprise’s repayment capacity.
- Possibility of a capital repayment holiday or extension of loan repayment period, up to 7 years.
- Fixed interest rate for the duration of the loan.
- Early repayment without penalty at any time with advance written notice of at least 90 days.