Paul Lecomte
17
Alternative Quebec agricultural youth fund May 25 th 2013 Food Farms Fish and Finance Forum Paul Lecomte, agronomist Director General
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Transcript of Paul Lecomte
Alternative Quebec agricultural youth fund
May 25th 2013
Food Farms Fish and Finance Forum
Paul Lecomte, agronomistDirector General
Alternative Quebec agricultural youth fund
Context
Limitations in capital access
Barriers to entry
Starting and transfer
Small regional enterprises
Financing tools
Support and logistics
Alternative Quebec agricultural youth fund
25 M$
FSTQGovernment of Quebec
CRCD
25 M$
25 M$
Partners
FIRA
Advisory commitee
Support young agricultural entrepreneurs with business start-up, development or transfer project with alternatives financial solutions and venture capital
Mission
Organization
5
Launched March 11, 2011
Staff : • 1 manager (full time)• 3 advisors and • 2 assistants / technicians
Networked with partners and market councelors
Des solutions à l’accès à la propriété pour la relève agricole 6
Types of project
Business start-up
Development
Transfer
Alternative Quebec agricultural youth fund7
Customers profile
18 to 39 years of age
Must have completed or obtained official recognition of education (level III minimum)
$ 30 000 business volume or more at maturity
Legal entities:
Individual, company, corporation, cooperative
Own at least 20 % shares of the company
Des solutions à l’accès à la propriété pour la relève agricole 8
FIRA’s benefits
Organizational
Projects planning
Financial
Access to additional funds
Equity
Access to farm without buying
Alternative Quebec agricultural youth fund
Alternative Quebec agricultural youth fund9
Business Plan
Description / vision / planning
5 years projections
Coaching plan
FIRA’s benefits
Addition to down payment
Priority creditors leverage
No payment of principal or interest for 3 years allowing to start the project and improve liquidity
Loan
11
Loan
We top up down payments
Up to $ 250,000 for 15 years
Leverage creation through second mortgage loan
Attractive rates for risk capital
12
Qualification
Must provide equal amount of funds
Entrepreneurial profile
Viable project with reasonable conditions to succeed
Loan
Alternative Quebec agricultural youth fund13
Equity
Up to $ 500,000
Over a 15 years horizon
Minority participation of FIRA
Expert partners available to enterprise advisory board
Contribution to financial structure
Alternative Quebec agricultural youth fund
Equity examples
Purchase and rental
15
Property acquisition by FIRA
Up to 15 years leases
Tenant ability to terminate lease yearly
Tenant exclusive right of redemption
Fair rent
Avoids the immobilization of start up capital
Eases youth access to agriculture
Purchase and rental
16
Benefits
Exclusive right of redemption through entire lease
Minimizes down payment needs
Establishment / progressive expansion
Des solutions à l’accès à la propriété pour la relève agricole
Paul Lecomte, agr.Chief executive officer1400, boul. de la Rive-SudSaint-Romuald (Québec) G6W 8K7Phone : 1 855 270-FIRA (3472) (Toll free)Fax : 418 834-FIRA (3472)Email : [email protected]
Alternative Quebec Agricultural youth funds
Visit our websitelefira.ca
