Chantier de l'économie sociale Trust — Operations Patient Capital Loan
Highlights
This program is designed for businesses like yours, offering patient capital loans to support your growth and development. Whether you need funds for working capital, equipment, or real estate, this program provides flexible financing options tailored to your needs. With no capital repayment obligation for 15 years and competitive fixed interest rates, you can focus on expanding your business without immediate financial pressure.
Key Benefits:
- Up to $1.5 million in financing
- No capital repayment required before the end of the 15-year term
- Monthly interest payments only
- Advance capital repayment with no penalty
- No guarantee required for operational financing
- Subordinate guarantee for real estate financing
What's in it for you?
- Lower financial risk compared to traditional loans
- Conserve capital for your project's needs
- Improved debt coverage ratio and financial capacity
- Leverage to attract other financial partners
This program is easier to qualify for than many traditional loans, making it an excellent opportunity to secure the funding you need to take your business to the next level.
Financing Details
Type of Financing: Patient Capital Loans
Repayment Terms and Interest Rates:
- No capital repayment obligation before the end of the 15-year term.
- Monthly interest payments.
- Competitive fixed interest rate for the duration of the investment.
- Possibility of advance capital repayment with no penalty.
Eligible Expenses:
Operations Patient Capital Loans:
- Working capital
- Equipment acquisition (office, computers, vehicles, machinery, and tools)
- Absorbing operational deficits during start-up
- Inventory
- Leasehold improvements
- Upgrading the enterprise’s capital
- Introducing new products to the market
- All other needs related to operations
Real Estate Patient Capital Loans:
- Acquisition, construction, and renovation of real estate assets
- Professional fees (architect, land surveyor, notary, etc.)
- Transfer taxes
- Other costs related to a real estate project (moving costs, working capital for production stoppage, etc.)
Ineligible Expenses:
- Pre-start-up activities
- Recovery and refinancing of existing debts
- Early repayment of a long-term loan with the goal of lowering overall financing costs
- Financing activities that result in the substitution of jobs held or to be held by public sector employees
Fees:
- No specific fees associated with the program are mentioned.
Qualifications
- Must be a social economy enterprise, non-profit organization, or cooperative.
- The majority of employees must live in Québec.
Business assets must be under $100 million or capital under $50 million.
Disqualifications:
- Enterprises whose appointment processes for governing bodies don’t ensure a preponderance of civil society stakeholders.
- Enterprises that exclusively offer educational services or residential rental housing services.
- Enterprises whose activities result in the substitution of jobs held or to be held by public sector employees.
- Private enterprises.
- Public bodies.
Description
This program offers your business long-term loans with flexible repayment terms. You can receive between $50,000 and $1.5 million to help with various needs.
For operational needs, you can use the funds for working capital, equipment acquisition, inventory, leasehold improvements, and more. These loans do not require any capital repayment for the first 15 years, and you only need to make monthly interest payments. You can repay the capital early without any penalties.
For real estate projects, the funds can cover acquisition, construction, and renovation costs. This includes expenses like professional fees and transfer taxes. The loan requires a mortgage from a financial institution and a subordinated guarantee on fixed assets.
Key benefits include:
- No capital repayment for 15 years, easing your cash flow.
- Competitive fixed interest rate, providing payment stability.
- No guarantee needed for operational loans.
- Early repayment without penalties, offering flexibility.
This program helps reduce financial risk and supports your business growth by conserving capital and improving financial capacity.
Program Steps
Gather Required Documentation: Prepare the necessary documents for your application. These include:
- Financial statements
- Business plan
- Details of intended use of funds (e.g., quotes for equipment, renovation costs)
- Proof of business registration
- Identification documents for business owners
Complete the Application Form: Fill out the application form provided by the Chantier de l’économie sociale Trust. Ensure all sections are completed accurately.
Review Loan Terms and Conditions: Understand the loan terms, including interest rates, repayment schedules, and any specific conditions tied to the loan. This will help you make informed decisions.
Submit the Application: Submit your completed application form along with the required documentation to the Chantier de l’économie sociale Trust. This can typically be done online or via mail.
Attend an Interview (if required): Be prepared to attend an interview or meeting if the Trust requests further information or clarification about your application.
Await Approval: The Trust will review your application and documentation. They may contact you for additional information or clarification during this period.
Receive Loan Offer: If approved, you will receive a loan offer detailing the terms and conditions. Review this offer carefully.
Sign Loan Agreement: Once you agree to the terms, sign the loan agreement and return it to the Trust.
Loan Disbursement: After the agreement is signed, the funds will be disbursed to your business account. You can then use the funds as specified in your application.
