City of Lac-Mégantic

Financial Assistance Program for the Industrial Park

The City grants financial assistance equivalent to 15% of the added value to the City’s real estate assessment roll established by the MRC du Granit (municipal assessment). This support program is intended for construction or expansion projects whose value entered on the roll is at least $100,000. The buildings must be in the PPU – Lac-Mégantic Industrial Park. The work must begin between January 1, 2021, and December 31, 2021, and be completed before the permit’s expiration date.

Schedule of Disbursements:

30% at half of the earned value against the project’s construction budget
30% when the construction work has been completed in accordance with the building permit
The residual financial assistance will be paid when the building is assessed and entered on the roll by the MRC du Granit.

Limited budget

New Building in the Downtown PPU Sector

The City provides financial assistance of $30,000 under the Rehabilitation, Reconstruction and Recovery Program.

The City grants a subsidy of 12% of the value added to the real estate assessment roll by the new construction.

For large-scale ($4 million and more on the real estate assessment roll) and community buildings, the City grants additional assistance equivalent to 75% of the land’s value.

The city also offers a decreasing property tax credit for buildings located in the downtown PPU sector according to the energy certification obtained by the building.

For a Novoclimat 2.0 Certified Building

100% of the property taxes for year one of the value added to the roll
50% of the property taxes for year two of the value added to the roll
25% of the property taxes for year three of the value added to the roll

*Year one begins on the day the City acknowledges receipt of the Novoclimat certificate.

For a LEED Certified Building

100% of the property taxes for year one of the value added to the roll
80% of the property taxes for year two of the value added to the roll
60% of the property taxes for year three of the value added to the roll
40% of the property taxes for year four of the value added to the roll
20% of the property taxes for year five of the value added to the roll

*Year one begins on the day the City acknowledges receipt of the LEED certificate.

The building must be in the Component II-2 zone of the plan in the appendix.

For all the details on terms and conditions, see by-law no 1828.

Limited budget.

Residential Construction Tax Credit Program

New Single-Family Residential Building

The City of Lac-Mégantic offers a tax credit for new single-family construction on part of its territory.

Property Tax Credit:

100% of the property taxes for year one of the value added to the roll
100% of the property taxes for year two of the value added to the roll
100% of the property taxes for year three of the value added to the roll
50% of the property taxes for year four of the value added to the roll
50% of the property taxes for year five of the value added to the roll

The SDE du Granit

SDE du Granit also offers targeted financial assistance for the start-up and expansion of businesses as well as assistance aimed at entrepreneurs.

Financial aid available at the SDEG

SDEG funds or programs	Nature of financial assistance	Eligible people or businesses
Territorial development fund	Call for projects — maximum non-repayable assistance of $40,000	Structuring development projects contributing to achieving the MRC’s and SDEG’s economic and local development priorities and orientations and the municipalities’ local development plans
Local investment fund — business succession component	Loan	Entrepreneur or group of entrepreneurs wishing to acquire a stake of at least 25% of the value of an existing business or 25% of the fair value of its assets in order to take it over
Local investment fund (LIF)	Loan Equity loan Loan guarantee Other types of financing available No subsidy possible	Start-up or growth of traditional or social economy enterprises and to support business succession
Fund for local investment (FLI)	Term loan granted without guarantee Equity loan convertible into share capital Share capital	Existing local businesses that meet certain criteria
Self-employment assistance (SEA)	From Emploi-Québec, benefits for a period of up to thirty weeks.	Recipients of income security and employment insurance, worker with precarious status, unemployed and without financial assistance, small for-profit business start-up projects

Source: Société de développement économique du Granit, https://sdeg.ca/, 2019. Guilaine Beaudoin, Development Advisor, Industrial Sector

SDE du Granit

Phone: 1-819-583-4411.

gbeaudoin@sdegranit.ca

SADC de la région de Mégantic

The SADC (Société d’aide au développement de la collectivité) in the Mégantic region provides business people with technical and financial assistance in planning their projects.

Portfolio — Regular

The SADC has an investment fund of more than $6 million intended for entrepreneurs and promoters in the territory of the MRC du Granit. Financial assistance in the form of a conventional loan or share capital can reach up to $150,000.

Portfolio — Youth Strategy

For young entrepreneurs aged 18 to 39, the Youth Strategy program aims to encourage the creation, expansion or modernization of a business by one or more young people. Financial assistance ranges from $5,000 to $25,000 in the form of a personal loan with advantageous terms.

Portfolio — Economic Recovery of the City of Lac-Mégantic

The SADC has a specific fund of $3M intended for business projects carried out in City of Lac-Mégantic’s territory that contribute to its economic and commercial recovery. Financial assistance in the form of a loan can reach up to $250,000 depending on certain eligibility criteria.

Other Financial Products

Loan — Support for Business Succession

The SADC has developed specific financing intended for the acquisition of a company’s shares or assets to encourage business succession in the MRC du Granit’s territory. The loan includes terms adapted to succession, such as the possibility of a moratorium on the repayment of capital of up to 36 months.

Loan — Operation Facade

SADC has instituted a revitalization program for renovating the exterior of commercial buildings. This program is intended for owners or tenants of commercial buildings located in Lac-Mégantic. It offers financing for renovation costs of up to $35,000 (including labour and materials) at a very advantageous interest rate and terms.

Loan — Youth Alternative

This loan, intended for young people aged 18 to 39, offers financial assistance of up to $50,000 to small businesses to create or maintain long-term jobs. The loan bears interest at the Bank of Canada’s prime rate + 2% and has a capital moratorium of up to 24 months.

Loan — Craftsperson entrepreneur

This program was set up by the SADC of the Mégantic region as part of Quartier Artisan’s program to attract craftsperson entrepreneurs.

The program provides financial assistance to small craft businesses with the aim of creating or maintaining long-term jobs. The maximum amount per project that the SADC can offer in financial assistance is $25,000.

Joannie Proteau, Executive Director
SADC de la région de Mégantic
4336 Laval Street
Lac-Mégantic, QC G6B 1B8
Phone: 1-819-583-5332
info@sadcmegantic.ca

Place de l’industrie

Provides and helps companies in acquiring or building industrial buildings.

Down payment assistance equivalent to 25% of the loan
5-year lease offered to the company (mandatory call feature)

Investment fund of $200,000 for companies whose chief place of business is in Lac-Mégantic.

Place de industrie also manages the Lac-Mégantic Economic Diversification Fund.

The fund is intended for start-up or expanding manufacturing companies wishing to set up in the Lac-Mégantic Industrial Park.
The company brings new components to diversification (new value-added products, new markets, etc.).

Local incentives