Local Investment Fund
The Local Investment Fund is designed to support the growth of businesses located within the SDEVM’s territory. A program of loan guarantees is offered to start-up and growth businesses (between 0 and 5 years of operation) to meet entrepreneurs’ specific needs.
ADMISSIBILITY
- Shareholders shall assume 10% of the financial needs established for the first year of activity;
- The business shall be located within the Borough of Ville-Marie;
- The company shall be a legally constituted for-profit enterprise;
- The business shall create quality employment;
- The entrepreneurs shall be Canadian citizens or permanent residents (residing in Quebec for at least two years).
TARGET CLIENTS
- Start-up businesses;
- Growing businesses;
- Companies in their marketing phase;
- Contract financing;
- Women in business.
DURATION
Loan guarantees may cover up to 100% of the loan (maximum $200 000).Loan guarantees last the length of the loan (maximum 5 years) and shall be reimbursed in 60 equal monthly payments.
Technology-based businesses may also receive a loan to guarantee their operating credit. However, the value of the guarantee must be reduced gradually over the coverage period described in the contract (1 or 5 years).
PURPOSE OF THE LOAN
The purpose of the loan shall be specified in each loan guarantee contract, and shall be limited to the following:
- Limited investment (property, land, equipment)
- Technology acquisition
- Forecasted working capital needs for the business’s first and second financial years
- Forecasted working capital needs for the business’s third to fifth financial years
- Inventory and receivables
- Hiring personnel
- Advertising, brochures
- Travel
- Legal fees for clearly defined commercial agreements.
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