On December 17, the Québec Minister of Economic Development, Innovation and Export Trade, Raymond Bachand, announced the details of a working capital and investment program for business stabilization and recovery.
The Renfort program will inject a billion dollars into business financing in terms of loans and loan guarantees. Investissement Québec will provide up to $250 million in direct financing in the form of loans. Loan guarantees will be provided for a maximum of $750 million of loans granted by financial institutions.
The program is geared mainly to successful companies, especially SMBs, that are experiencing temporary liquidity problems due essentially to the tighter credit conditions in Québec prompted by the current economic and financial situation.
The loans and loan guarantees will range from $250,000 to $15 million. Working with the financial sector and under certain conditions, the Renfort program will help businesses meet their needs for working capital, acquire equipment and refinance their debt. Amounts exceeding $15 million will be approved by the government.
Companies are facing lower demand from the United States and Europe, volatility in the value of the Canadian dollar as well as raw material prices and, although our financial sector is less affected, more difficult access to credit.
Eligibility criteria and the terms and conditions of the Renfort program can be found at: http://www.investquebec.com/ en/index.aspx?page=2336