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  • About RISQ
    • Mission
    • History
    • Documentation centre
  • About us
    • The team
    • Governance
    • Ours partners
    • RISQ’s Relay Agents Network
  • Financial products
    • Eligibility
    • Technical assistance loan
    • Pre-startup loan
    • Capitalization loan
    • Patient capital loan – from the ces trust
    • Affiliated products
    • Documents and references
  • Guide and training
    • Guide for analysis of social economy enterprises
    • Training
  • Our impact
    • Business portraits
    • Economic and social evaluation
  • Contact us
    • Contact RISQ
    • Designated Representatives

Moving from idea to project

Make it happen │ Accelerate │Found │ Create

PRE-STARTUP LOAN

Loan up to $100,000 over 2 years, or $50,000 per year

$100 application fee

Whether your collective enterprise is new or existing, our Pre-Startup loan supports your enterprise to prepare and implement your projects — expansion, innovation, or development of new markets and business opportunities.

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.

OBJECTIVES

  • Support the emergence of new enterprises
  • Foster the development of existing enterprises
  • Ensure the continuation of social economy enterprises

CHARACTERISTICS

  • No capital repayment during the pre-startup period, or up to 2 years
  • Interest holiday during pre-startup period
  • No personal guarantees required
  • Capital without a guarantee
  • Investment is disbursed in several payments based on the enterprise’s needs.
  • Commitment fee: 1.5% of authorized total, payable when investment is disbursed. Application fee of $100 is deducted from commitment fee.

ELIGIBLE EXPENDITURES

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 human resources needed to carry out the project
  • Fabrication of prototypes and conducting a market test
  • Costs related to rental of premises, computer equipment, telecommunications, supplies, and other operating costs
  • Travel, representation, and other costs deemed essential to the project
  • Consultant fees up to $5,000 to carry out additional studies needed to finalize the business plan
  • Research and development expenses for existing enterprises
  • Research or partnership development, creation of a consortium to bid for contracts
  • Canvassing the market (negotiations with suppliers and potential clients)
  • Preparation of a round of financing and contacts with various social economy funding sources.

INELIGIBLE EXPENDITURES

  • 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

 

HOW TO APPLY

STEPS

  1. Contact our team to validate the eligibility of your proposal
  2. Send us the requested documents and the $100 application fee
  3. A RISQ financial analyst reviews the application
  4. 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.
  5. If accepted, RISQ’s offer of investment is signed and the first disbursement is made.
  6. Repayment when the overall financing plan is completed and RISQ has commenced follow-up

LES DOCUMENTS

  • 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.

REPAYMENT

  • Payment at startup, in other words, at the moment of the first round of financing, first sales, or after expiration of the 2-year pre-startup deadline

OR

  • Repayment by fixed payments (capital and interest) in accordance with a repayment agreement made after the above-mentioned deadlines:
  • Term of no more than 10 years after pre-startup phase
  • Fixed interest rate for the duration of the loan
  • Repayment of capital and interest in accordance with agreed on time line
  • Possibility of a capital repayment holiday of up to 5 years
  • Early repayment without penalty at any time with advance written notice of at least 90 days

Our other financial products

Technical assistance loan

Validate the idea
Find out more

Capitalization loan 

Start up, develop, ensure continuity
Find out more

Ces trust loan

Need more financing
Find out more

Obtain financing to match your stage of development

Starting up

Turning ideas into action!
Find out more

Develop

Reinforce or stabilize your operations!
Find out more
Eligibility
Documents and references

BECAUSE EVERY PROJECT IS UNIQUE, GET IN TOUCH WITH US!

NOUS JOINDRE

1431, rue Fullum, bureau 208
Montréal (Québec) H2K 0B5

Téléphone : 514 866-2355

Sans frais : 1 855 388-2355

risq@fonds-risq.qc.ca

EN COLLABORATION AVEC
SUIVEZ-NOUS !

Tous droits réservés. © RISQ – 2020