Quebec Fonds locaux d'investissement (FLI) — MRC Business Loans
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Eligibility & Details
What this program funds and who can apply
Program Description
The Fonds locaux d'investissement (FLI) is Quebec's province-wide local business loan program administered by 104 MRCs, providing flexible loans of up to $150,000 per 12-month period for startup, expansion, and succession projects. Up to 50% of eligible expenses are covered (80% for social economy enterprises), with a minimum 15% equity contribution required from the entrepreneur. Loans may include a moratorium period or extended repayment schedule, making this the primary capital access tool for Quebec SMBs outside conventional banking.
Eligibility Requirements
- For-profit enterprises legally constituted under Quebec or Canadian law (corporations, partnerships, sole proprietors)
- Cooperative and non-profit organizations with commercial activities are also eligible
- Business must be located on the territory of the MRC administering the fund
- Must not appear on the RENA registry of defaulted debtors
- Must not be in bankruptcy or under the protection of creditors
- Minimum 15% equity contribution required (15% net equity post-project for existing businesses; 15% of startup costs for new businesses)
- Eligible project categories: business startup (under 2 years in commercialization), improvement and transformation (1+ years operating), growth and expansion (2+ years operating), or entrepreneurial succession (acquisition of ≥25% of business value)
Quick Assessment
Funding Details
- Amount
- Up to $150,000 per 12-month period (some MRCs up to $250,000); loans cover up to 50% of eligible costs (80% for social economy)
- Type
- Loan
- Level
- Provincial
- Financing share
- Up to 50% of eligible costs
- Deadline
- Ongoing — MRCs process applications continuously
Program Scorecard
Competition, effort, and approval at a glance
Everything you need to secure FLI
Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.
- 7-document checklist with what each reviewer is actually checking
- 5-step application timeline with prep hours per step
- Insider tip from program officers on what separates winners
- 3-program stacking strategy to combine with compatible funding
- Success profile + evaluation criteria — exactly what lenders look for
How to qualify
Insider tips, common pitfalls, and what successful applicants look like
Insider TipContact your regional MRC early — each one has its own investment policy and available capital envelope, so eligibility criteria and maximum amounts vary. Ask specifically whether your MRC has funds available before investing time in the application. Succession projects (buying out a retiring owner) are explicitly supported and often move quickly when documentation is complete. Social economy enterprises (cooperatives, NPOs with commercial activities) can access up to 80% coverage rather than the standard 50%.
Success Profile
A Quebec entrepreneur with a credible business plan, 15%+ equity contribution, and a project in one of four categories: new startup in commercialization (under 2 years), improvement of an existing operation, regional growth/expansion, or succession acquisition. Applicants located in rural areas or underserved MRC territories where conventional bank financing is scarce get the most value from FLI as a first-lien or subordinated loan.
Evaluation Criteria
Each MRC evaluates applications against its local investment policy. Common criteria include: project feasibility and viability, contribution to local economic development, entrepreneur equity commitment (minimum 15%), creditworthiness and ability to repay, job creation or retention, and alignment with regional economic priorities. MRCs have discretion to prioritize projects that serve underserved communities or underrepresented entrepreneurs.
Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 7
Eligible Expenses 8
- Equipment and machinery purchases
- Technology acquisition
- Building purchases or improvements
- Land acquisition (when tied to a capital project)
- Working capital (up to 2 years of needs)
- Pre-project professional fees (feasibility studies, accounting, legal)
- Project implementation fees
- Succession transaction costs and acquisition fees
Ineligible Expenses 6
- Pre-application expenses (costs incurred before the FLI application)
- Debt service or refinancing existing loans
- Research and development activities
- Normal operating costs not tied to the project
- Quebec sales taxes (QST recoverable amounts)
- Goodwill (in most MRCs)
Deadline Notes
No province-wide intake window. Applications processed on a continuous rolling basis by each MRC. Contact your regional MRC directly to initiate an application. Program extended through December 31, 2028 with $5M in additional funding announced for 2025-2026.
Ineligible Organizations
- Businesses listed on the RENA registry of defaulted government debtors
- Businesses in bankruptcy or under creditor protection
- Businesses located outside Quebec MRC territory
- Pure holding companies without commercial operations
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Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
Medium RiskStandard loan agreement conditions apply. If the business ceases operations before the loan is repaid, the MRC may demand immediate repayment of the outstanding balance. Forgiven amounts (if applicable) may trigger tax recapture. Entrepreneurs who fail to maintain minimum equity levels or materially change the project may face early repayment demands.
How FLI Compares
Side-by-side with similar programs
| Program | Amount | Difficulty | Payment | Deadline |
|---|---|---|---|---|
| Quebec Fonds locaux d'investissement ... | Up to $150,000 | Easy | Loan | Ongoing — MRCs process... |
| Investissement Québec - ESSOR Program | up to $50,000 | Moderate | Mixed (Advance + Reimb.) | Ongoing |
| Canada Small Business Financing Program | Up to $1.15 million | Easy | Mixed (Advance + Reimb.) | Ongoing |
| Quebec R&D Tax Credit (CRIC — Researc... | 20-30% tax credit (CRIC) | Hard | Tax Credit Offset | Ongoing |
| Investissement Québec — Project Finan... | Varies | Hard | Mixed (Advance + Reimb.) | Ongoing |
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Frequently Asked Questions
Quick answers to the questions founders most often ask about FLI