Objective

To stimulate local entrepreneurship by facilitating access to business start-up and expansion capital in both traditional and social economy areas.

Eligible Businesses

Any business in start-up or expansion phase, including social economy businesses, whose projects are consistent with the LDC’s investment policy directions.

Admissible Expenses

• Admissible capital expenditures such as land, building, equipment, machinery, mobile equipment, incorporation fees as well as any other expenses of the same nature except for goodwill costs;
• The purchase of technologies, software or software packages, patents and any other expenses of the same nature excluding research and development activities;
• Working capital needs related strictly to the business’s operations calculated for the first year of operation, excluding the owners’ salaries, but is required to make the necessary efforts to identify alternative funding sources for employees’ salaries.

Nature of Financial Assistance

• The assistance provided by the LDC with the amounts allocated by the government as part of this activity can be in the form of a loan, equity loan, loan guarantee, suretyship, acquisition of savings bonds or other debt securities, investment in capital stock, social capital or otherwise except for investments in the form of subsidies, interest holiday, capital holiday, sponsorship, donations and other expenses of the same nature, in accordance with LDC’s investment policy;
• Combined financial assistance from the provincial and federal governments and the LDC cannot exceed 50% of the admissible expenses for each project except for social economy projects where financial assistance can be up to 80%.

Amount of Financial Assistance

As a general rule, the amount of financial assistance shall not exceed $ 50,000.

Limitations

Limitation apply to all F.L.I. financial applications.

• Expenses for the execution of a project that are made before the date of reception by the LDC of the official application are not admissible;
• The allocated financial assistance cannot be used for an organisation’s operating expenses, debt servicing, future loans repayment or financing an already completed project.

Payment Terms and Conditions

For all approved projects, a contract will be made between the LDC and the entrepreneur. This contract shall define the terms and conditions for the payment of financial assistance and the parties’ obligations.

Other Conditions

A business may apply more than once for F.L.I. assistance. A second loan may be granted when 75% of the first loan has been paid back. The applicant’s file will then be reviewed once again.