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Government announcement
February 08, 2018

Cooperative Buyout Support Program – 50 M$ to maintain the Quebec ownership of businesses


Un nouveau programme est lancé pour soutenir le repreneuriat collectif et assurer le maintien de la propriété québécoise…

Posted by Dominique Anglade on Wednesday, February 7, 2018

2017-2022 government action plan on entrepreneurship – A new program to support cooperative buyouts and maintain the Quebec ownership of businesses

Saint-Malachie, Québec, February 8, 2018 — The Government of Quebec has announced the establishment of the new Programme d’appui à la reprise collective d’entreprises (PARC) (Cooperative Buyout Support Program) as part of the 2017–2022 government action plan on entrepreneurship. The program has a $50 million intervention budget and is managed by Investissement Québec as part of the Economic Development Fund. It takes into account recommendations provided by the Repreneurs collectifs issue table.

Dominique Vien, Member for Bellechasse and Minister responsible for the Chaudière-Appalaches region, believes that this new program will help cooperative buyers make down payments and will have a leverage effect for the financing of larger business transfers, all while decreasing the buyers’ financial burden.

Announced during the 2017–2018 budget speech, the program’s implementation will enable cooperatives to benefit from favourable conditions when completely or partially taking over a company’s activities, including, for example:

  • At least $100,000 and up to $2 million in financial aid
  • Reimbursement of this aid over a maximum period of fifteen years
  • A fixed interest rate equivalent to that for Quebec bonds for a five-year term, with a 1.25% add-on rate
  • A declining subsidy on interest for the first five years
  • A moratorium on reimbursement that can last three years in the case of a complete buyout

PARC aims to support 100 cooperative buyouts over five years, which will contribute to creating or maintaining 3,000 jobs all over Quebec, as well as maintaining Quebec ownership of companies.

Quotes:

Our government has already put significant measures in place to support businesses in the Chaudière-Appalaches region at each step of the way. Thanks to the collaboration and mobilization of all economic stakeholders, our entrepreneurs can now benefit from favourable conditions throughout the process of transferring their business.

– Dominique Vien, Member for Bellechasse, Minister responsible for Labour and Minister responsible for the Chaudière-Appalaches region

This program’s implementation in the scope of the 2017–2022 government action plan on entrepreneurship and the 2015–2020 government action plan on social economy demonstrates our government’s commitment to encouraging the cooperative buyout of businesses. Entrepreneurial succession is a significant challenge for Quebec and one of its issues is maintaining ownership of businesses that are put up for sale and of the jobs associated with them on Quebec territory. Collective business takeovers by cooperatives are an effective solution to this issue.

– Dominique Anglade, Deputy Premier, Minister of Economy, Science and Innovation and Minister responsible for the Digital Strategy

Giving our businesses the tools they need to ensure their longevity is essential if we want to encourage a new generation of entrepreneurs to be active all over Quebec. Thanks to its leverage effect, this new program will encourage increased private investment in Quebec and maintain the activities of small and medium-sized businesses in Quebec.

– Stéphane Billette, Minister for Small and Medium Enterprises, Regulatory Streamlining and Regional Economic Development

Key facts:

  • Entrepreneurship is a priority for the Government of Quebec and a pillar for its vision of economic development, alongside innovative manufacturers and exports.
  • The future 2017–2022 government action plan on entrepreneurship will offer Quebec entrepreneurs more targeted support.
  • As part of the 2015–2020 government action plan on social economy, the Government of Quebec set up the Repreneurs collectifs issue table, whose mandate is to provide recommendations that will effectively contribute to the cooperative buyout of companies in Quebec. Annexed is the list of main partners of the Repreneurs collectifs issue table.
  • In 2015, the Government of Quebec created the Centre de transfert d’entreprise du Québec, whose mandate is to support transferors and buyers during the transfer process.
  • In 2018, because of the aging of its population, Quebec will have 25,000 fewer entrepreneurs than in 2008, which is a decrease of nearly 15%.

Related link:

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 Annex

List of the main partners of the Repreneurs collectifs issue table

  • Quebec Chartered Professional Accountants Order
  • Barreau du Québec
  • Ordre des conseillers en ressources humaines agréés du Québec
  • Fédération québécoise des municipalités
  • Conseil québécois de la coopération et de la mutualité
  • Chantier de l’économie sociale
  • Centre de transfert d’entreprise du Québec
  • Coopérative de développement régional du Québec
  • Pôles régionaux d’économie sociale
  • Desjardins Entreprises Capital régional et coopératif
  • Investissement Québec
  • Fondaction of the Confédération des syndicats nationaux (CSN)
  • Fonds de solidarité FTQ
  • Réseau de la coopération du travail du Québec
  • CSN
  • MCE Conseils
  • Raymond Chabot Grant Thornton