Quasi-Equity Loan
Summary
This loan aims to increase the equity needed to support the realization of business projects, complementing the financing offerings from traditional financial institutions.
The loan ranges from $100,000 to $300,000, for a project with a minimum cost of $1 million.
Terms
- Loan amount: Between $100,000 and $300,000
- Interest rate: Bank of Canada’s prime rate + 4% + risk premium (if applicable)
- Term loan: Equivalent to two dollars for each dollar invested by the owner in equity
- Personal guarantee: From the business owner
- Capital moratorium: 24 to 60 months
- Maximum amortization: 8 years
- Early repayment: Allowed without penalty after 3 years, subject to certain conditions
Eligibility
- The business must be located in Beauce
- The business must have been in operation for at least 3 years
- Minimum EBITDA of $250,000 in the last two years
- Minimum generated funds of $100,000
- Project cost must be at least $1 million
- Business with 200 employees or fewer
- Cannot be used to refinance debt
Ready to get started? Tell us about your project.