Aéro Montréal supports establishment of new fund
Dec. 4, 2013, Montreal - Aéro Montréal, Québec’s aerospace cluster, today announced its support for the creation of a fund established by Finalta Capital that is dedicated to providing strategic support for research and development (R&D) projects undertaken by innovative companies in Québec’s aerospace industry.
Launched as part of Aéro Financement Day at the Aerospace Innovation Forum 2013, organized in collaboration with Finance Montréal, theFonds de financement des crédits d’impôt à la R-D pour le secteur aérospatial (Fund for financing aerospace sector R&D tax credits) will make available $15 million to reduce the financial pressure on the cash flows of aerospace companies in the process of obtaining of R&D tax credits.
“This fund, which can be described as visionary, will allow SME members of Aéro Montréal to increase their level of innovation and focus their energies on speeding up the commercialization of advanced technologies,” says Suzanne Benoît, President, Aéro Montréal. “Innovation and R&D investments are critical to the competitiveness of the aerospace industry worldwide. As such, the fund will provide a significant competitive advantage for companies and ultimately help them to join the supply chains of future aircraft platforms.”
The Fund for financing aerospace sector R&D tax credits offers:
– Pre-financing of R&D expenditures, meaning that loan disbursements are accelerated to the first day of each quarter in anticipation of budgeted expenditures.
– Access to 50% more capital than with traditional sources of financing based on the same tax credits.
– A simplified approach means that the financial close is dramatically fast-tracked to be completed in some 15 days.
“These funds will significantly increase the liquidity of SMEs who will benefit from them while reducing their capital costs,” notes Maxime-Jean Gérin, President and CEO of Capital Finalta CII-ITC inc. “Finalta Capital is proud to offer strategic support to innovative companies across the entire value chain of the Québec aerospace industry.”
“This new strategic collaboration with the financial industry demonstrates the economic importance of aerospace for Québec,” says Éric Lemieux, CEO, Finance Montréal. “ By adapting financial products to the needs of companies and market trends, we are helping local entrepreneurs increase the success of their companies.”