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a-13.1, r. 1
- Regulation respecting assistance for tourist development
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À jour au 1
er
septembre 2012
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chapter
A-13.1, r. 1
Regulation respecting assistance for tourist development
ASSISTANCE FOR TOURIST DEVELOPMENT
Act respecting assistance for tourist development
(chapter A-13.1, s. 37)
.
A-13.1
09
September
01
1
2012
DIVISION
I
ELIGIBILITY OF APPLICATIONS
1
.
An application for financial assistance shall not be considered unless it is submitted in writing to the Investissement Québec (Company) and contains the information and documents required by the forms prescribed by the Minister.
The business shall also supply all relevant information, in particular concerning its structure, management, affiliated firms, nature of business, the carrying on of its operations, the reasons in support of the application and the measures intended for the achievement of its aims.
O.C. 1791-83, s. 1
.
2
.
A business shall not enter into any contract connected with expenditures that are eligible under the Act respecting assistance for tourist development (chapter A-13.1) before the Company receives its application, unless the financial assistance is a guarantee of total or partial repayment of a financial liability or a loan to a business that can not otherwise obtain one.
In this Regulation, an eligible expenditure is an expenditure made for the purposes of section 5 of the Act.
O.C. 1791-83, s. 2
.
3
.
The financial assistance prescribed by the Act respecting assistance for tourist development (chapter A-13.1) may be granted for a project for a downhill ski centre having an existing or potential skiing surface with a vertical drop of not less than 250 m, or located in a territory having not less than 100 rooms for lodging within a radius of 1 km from the start of the ski lifts, or in a territory showing potential for reaching that number by implementing the project.
O.C. 1791-83, s. 3
;
O.C. 609-88, s. 1
.
4
.
(Revoked).
O.C. 1791-83, s. 4
;
O.C. 609-88, s. 2
.
5
.
(Revoked).
O.C. 1791-83, s. 5
;
O.C. 609-88, s. 2
.
DIVISION
II
FINANCIAL ASSISTANCE
6
.
In addition to the forms of financial assistance described in paragraphs
a
to
f
of section 6 of the Act, financial assistance may take the form of:
(
1
)
an interest-free loan;
(
2
)
purchase by the Company of non-voting, non-dividend-paying shares.
O.C. 1791-83, s. 6
.
7
.
The following points are to be considered in selecting or assessing the relevance of tourist projects:
(
1
)
touristic: the nature of the project, the operating seasons, the harmonisation of the touristic product and the Government’s priorities in touristic development;
(
2
)
economic: the market prospects, the leverage of the project and the ability of customers to afford the services;
(
3
)
administrative: the competence and experience of managers, their marketing policy, making the best use of the existing infrastructures or services;
(
4
)
geographical: the accessibility of the project to users, the interest of the site and the proximity of other touristic activities;
(
5
)
cultural: the historic interest of the site, the harmonisation of the architecture with the environment and the decoration of the proposed building.
O.C. 1791-83, s. 7
.
8
.
A business seeking the financial assistance described in paragraphs
a
and
b
of section 6 of the Act shall show that:
(
1
)
it cannot obtain adequate financing from institutions;
(
2
)
the shareholders “or owners” investment is adequate;
(
3
)
its financial prospects ensure the repayment of the assistance;
(
4
)
where it is a new venture, the project is designed to provide services that constitute a new idea, and are either unavailable, or inadequate in kind or in degree, and the project has market prospects which are sufficiently extensive and lasting to make it profitable.
O.C. 1791-83, s. 8
.
9
.
The financial assistance described in paragraph
a
of section 6 of the Act shall be in the form of a guarantee of repayment of a loan, limited to 80% of the lender’s loss, and to 80% of the amount of the initial loan.
The financial assistance described in paragraph
b
of section 6 of the Act shall be in the form of a loan at the market rate for a term not exceeding 15 years.
O.C. 1791-83, s. 9
.
10
.
To be eligible for any of the forms of financial assistance described in paragraphs
c
,
d
,
e
,
f
or
g
of section 6 of the Act, a business must show that its project is designed to provide services that constitute a new idea, and are either unavailable, or inadequate in kind or in degree, and the project has market prospects which are sufficiently extensive and lasting to make it profitable.
O.C. 1791-83, s. 10
.
11
.
(Revoked).
O.C. 1791-83, s. 11
;
O.C. 609-88, s. 2
.
12
.
The financial assistance granted under paragraphs
c
,
d
and
g
of section 6 of the Act for downhill skiing projects may amount to 50% of the eligible expenditures provided that they are directly related to the practice of downhill skiing, including grants made by other Québec government sources for the same expenditures. Expenditures incurred for lighting trails are excluded.
O.C. 1791-83, s. 12
.
13
.
Where financial assistance is granted under paragraphs
c
,
d
or
g
of section 6 of the Act, the following rules apply:
(
1
)
a declining scale is applied to eligible expenditures exceeding $2,000,000;
(
2
)
financial assistance is given over a period not exceeding 5 years;
(
3
)
the first payment may be made from the beginning of the operations connected with the carrying out of the project; any subsequent payments are subject to conditions for obtaining the greatest possible benefits for tourism in Québec.
O.C. 1791-83, s. 13
.
14
.
Where financial assistance is granted under paragraphs
a
or
b
of section 6 of the Act, the security required or held by the Company, whether movable or immovable, shall be of sufficient value to cover the regular discharge of the indebtedness of a business that has obtained financial assistance.
O.C. 1791-83, s. 14
.
15
.
Where financial assistance is in the form of a purchase of shares under paragraph
f
of section 6 of the Act, the Company may make an agreement with the business or with its shareholders to:
(
1
)
have representatives nominated by the Company on the board of directors;
(
2
)
fix procedures for selling shares held by the Company.
O.C. 1791-83, s. 15
.
DIVISION
III
ADMINISTRATION
16
.
The Minister may, without the consent of the Government, grant financial assistance under paragraphs
c
,
d
,
e
or
g
of section 6 of the Act to a limit of $500,000 per project.
O.C. 1791-83, s. 16
.
17
.
This Regulation replaces the Regulation respecting assistance for tourist development (R.R.Q., 1981, c. A-13.1, r. 1)
O.C. 1791-83, s. 17
.
17.1
.
(Omitted).
O.C. 609-88, s. 3
.
18
.
(Omitted).
O.C. 1791-83, s. 18
.
REFERENCES
O.C. 1791-83, 1983 G.O. 2, 3335
O.C. 609-88, 1988 G.O. 2, 2042
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