GENERAL ADMISSIBILITY CRITERIA- Must be aged 18 to 35 inclusively, be a Canadian citizen or permanent resident and be a resident of Quebec for more than two years.
- Must have as a goal to accomplish a business project involving a start-up (Founder program), acquisition (Purchaser program) or investment in a company's capital stock (Partner program).
- The company must be for profit, have its head office in Quebec and be incorporated at the time of the S.I.J.'s financial grant. The company may operate in any activity sector except those involving land speculation, real estate and securities brokerage, and professions such as law, accounting, dentistry, medicine and notarial work, retail, hotels and restaurants as well as import/export.
- Must invest or have invested personal funds equal to at least 10% of the company's total financial needs. If there are several entrepreneurs, the sum of their investments must equal at least 10%.
- Must work full time within the company.
FINANCIAL SUPPORT
The Société d'Investissement Jeunesse offers a 100% personal loan guarantee for financing by most financial institution.
Eligible entrepreneurs can receive up to $75 000 in personal loan guarantees according to the project's financial structure. When there are three or more eligible entrepreneurs, the total guarantee can reach a maximum of $225 000.
FEES
Our management costs are charged at an annual fee of 2% of the value of the guarantee provided.
Other fees may be added based on our assessment of the project, such as:
- Payment of royalties up to 3% of the value of sales.
- Share-purchase option for up to 10% of the company's capital stock.
THE BENEFITS OF AN S.I.J. PERSONAL LOAN GUARANTEE
- Interest rates are no more than the lending institution's prime rate plus 1.
- Capital reimbursement is extended progressively over five years, but no capital reimbursement is required in the first year. It starts in the 13th month in the form of equal monthly payments according to the following schedule:
Year | Capital reimbursement |
1 | 0% |
2 | 10% |
3 | 20% |
4 | 30% |
5 | 40% |
| 100% |
Interest is charged monthly beginning the first month after receiving the loan. No penalty is charged if the entrepreneur wishes to pay back their loan faster.
EXAMPLE OF AN ELIGIBLE FINANCING STRUCTURE
(Structure for financing start-up costs, equipment purchases and working capital.)
Required sources of financing | Example | Details |
Investment by entrepreneur(s) | $10 000 | Personal funds equal to at least 10% of the total financing. |
Long-term loan from a financial institution. COMMERCIAL LOAN. | $50 000 | Loan granted to the company; amount must equal at least that of the S.I.J.'s financial participation. |
S.I.J. loan guarantee | $40 000 | Personal loan to the eligible entrepreneur, 100% guaranteed by the S.I.J.. Up to $75 000 per entrepreneur or $225 000 per project. |
Total financing | $100 000 | |