Fonds locaux d'investissement (FLI)
Quebec businesses can get government-backed financing of up to $150,000 per project. It is a loan or loan guarantee covering up to 50% of eligible costs for for-profit businesses, and you can apply any time until December 31, 2028.
Before you spend any money
Approval must come before spending; expenses incurred before application submission are ineligible.
At a glance
Subject to program rules, available funding, and approval. Confirm current details with the official program administrator.
Is this for you?
- You run a for-profit SME in Quebec with fewer than 250 employees.
- You have a clear plan for startup, growth, transformation, or succession that needs capital investment.
- You can show profitability for growth projects or are in the commercialization phase for startups.
Probably not the right fit if
- You are looking for a grant. This is financing you must repay with interest.
- You are not legally registered or immatriculated in Quebec.
- You are currently in bankruptcy, insolvency, or listed on the Register of businesses ineligible for public contracts (RENA).
How much you'd realistically get
Up to $150,000 per project over 12 months, covering up to 50% of eligible costs for for-profits.
What may be supported
- Startup: Working capital and capital expenses for establishing the business.
- Improvement/Transformation: Capital expenses for productivity, digital transformation, or sustainable practices.
- Growth/Expansion: Capital expenses for expansion and additional working capital.
- Succession: Costs of acquiring ownership titles and assets, plus transaction fees.
What's excluded or restricted
- Expenses incurred before the application is submitted.
- Debt service, repayment of future loans, capital loss, capital replacement, or payments made as capital.
- Transactions between related companies or partners.
- Research and development expenses (except for licensed cannabis/hemp R&D).
- Normal operating expenses of the business.
- Quebec sales taxes.
- Pre-startup activities.
- Turnaround/restructuring of businesses in difficulty.
- Acquisition of a company not part of a succession/relève entrepreneuriale strategy.
- Controversial weapons production/distribution.
- Fossil fuel exploration, extraction, drilling, production, or refining (except for low-carbon transition activities).
- Gambling/casinos/bingo halls.
- Violent games, combat sports involving living species, or similar activities.
- Sexual exploitation (erotic bars, escort agencies, erotic massage, swinger clubs, pornographic material production).
- Production, sale, or services related to tobacco or drugs (except specific licensed cannabis/hemp activities).
- Recreational cannabis products.
- Non-health-Canada-approved medical cannabis products.
- Additional cannabis products (food ingredients, processed foods, topical products, concentrates, tinctures, capsules).
How applying works
Effort: moderateYou must contact your local MRC, prepare a detailed project file, and meet specific profitability or commercialization criteria.
- 01Contact your local Municipalité Régionale de Comté (MRC) or designated local economic development organization.
- 02Review the specific investment policy and procedures of your MRC.
- 03Prepare your application file, including proof of legal status, profitability (if required), and project details.
- 04Submit the application to the MRC for analysis and selection.
- 05Wait for approval before incurring any eligible expenses.
Who to ask: https://www.quebec.ca/nous-joindre/renseignements-generaux
Documents commonly required
- Proof of legal registration/immatriculation in Quebec.
- Financial statements demonstrating profitability (if required for your project type).
- Detailed project plan and budget.
- Proof of compliance with Francization requirements (if applicable).
What to know before you count on it
- This is a loan or participatory loan, not a grant; you must repay the principal plus interest.
- Total government aid cannot exceed 70% of total project cost (85% for social economy enterprises), meaning you need other funding or equity for the rest.
- Eligibility depends on your local MRC's specific investment policy and your business's profitability history.
- You must comply with the Francization process if you employ 25+ people in Quebec for 6+ months.
What are your odds?
Approval depends on your business plan's viability, creditworthiness, and alignment with your local MRC's investment policy.
Frequently asked questions
Is this money taxable?
No, the loan principal is not taxable income. However, interest payments may be tax-deductible; confirm with your accountant.
Can I use this for working capital?
Yes, for startup projects (up to 2 years) and improvement/growth projects, additional working capital is an eligible expense.
What if I am a non-profit?
Non-profits can receive up to 80% of eligible costs, but you must be a collective enterprise that earns more than 50% of its revenue from its own business activities.
Do I need to be profitable to apply?
The profit rules depend on the project type. Startups must be in the commercialization phase and not profitable for more than 1 year. Improvement projects must be profitable for more than 1 year. Growth projects must be profitable for more than 2 years.
More funding by what it pays for
Funding for Automation
Loans and grants to help you automate business workflows and tasks.
Funding for Cybersecurity
Some digital grants and technology loans may help pay for cybersecurity measures.
Funding for Websites
Grants and loans to help you build or improve your business website.
Funding for E-commerce
Grants and loans to help you launch or improve your online store.
What you can combine it with
Total government aid cannot exceed 70% of total project cost (85% for social economy enterprises), so you can stack with other sources but must cover the remainder.
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Worth reading before you apply
Get alerted when this changes
Programs open and close, budgets run out, rules change. We send one short email when something changes that matters for this program.
Page last updated ; status and deadline checked . Source: official program page.