Press release

Montréal, May 22, 2008 – The Solidarity Fund QFL (the “Fund”) and its regional Solidarity Funds today launched a new solution and approach for Québec business transfers called the SME Transfer Solution. This solution provides both strategic and financial support to buyers and guidance to owners selling their business.

Business transfer is a topical issue in Québec as seven out of ten owners plan on handing over the reins of their company by 2015 (according to the Canadian Federation of Independent Business). While this prospect may appear worrisome, it offers a business opportunity for potential buyers. Since it seems clear that Québec SMEs need concrete solutions adapted to their reality to help them through this transition, the Solidarity Fund QFL and its network of regional funds have developed this new solution.

The SME Transfer Solution offers products and services that can be tailored to the needs of buyers or owners selling their company. Buyers can benefit from the Fund’s Flexi-Loan, which contains highly flexible repayment terms and conditions, for example, the loan is repaid based on the company’s financial capacity, a principal payment holiday is offered as of the first year, and an early repayment option is available. In terms of tax planning, both the buyer and the seller can obtain, after the first meeting, a draft transaction outlining the financial, legal and tax aspects of the transaction.

“The Fund has been supporting business owners with their succession efforts for more than 10 years now. Whether it involves handing over the reins, securing financing, providing buyers with strategic support or tax advice, we believe that our new approach will give Québec companies a better chance of surviving,” said the Fund’s senior vice-president, Normand Chouinard.

“The day-to-day management of a company leaves little time for business transfer planning. The draft transaction gives entrepreneurs a clear idea of the project’s feasibility and furthers their reflection in this regard. Here is an example of an initiative that we have taken and that meets the needs of business owners. With our solution, the seller can benefit from the capital gains exemption permitted by the governments. Moreover, we are using our network of internal and external professionals to optimize the company’s growth and the odds of a successful transfer,” stated Élaine Zakaïb, president and CEO of the regional Solidarity Funds QFL.

A successful business transfer is a delicate operation and it is in this context that the Fund, with this new solution, teamed with the Chaire de développement et de relève de la PME at HEC Montréal to create a Web site aimed at people interested in buying or selling a business. The site Du rêve à la relève proposes a framework of reflection and action applicable to all types of situations involving a business transfer. Visit www.durevealareleve.com
About regional Solidarity Funds QFL
Since they were launched in the spring of 1996, the 16 regional Solidarity Funds QFL have been actively participating in the economic development of the regions of Québec. As at March 31, 2008, the regional Funds’ portfolio comprised 270 partner companies, bringing the total number of jobs created or preserved to 12,400. Total investments stood at $142.6 million.

About the Solidarity Fund QFL
With net assets of over $7.4 billion as at November 30, 2007, the Solidarity Fund QFL is a development capital company that through its RRSP channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs and to further Québec's economic growth. The Fund is a partner, either directly or through its network members, in 1,696 companies. It currently has more than 575,000 shareholders and has helped, on its own or with other financial partners, to create, maintain and protect over 122,000 jobs. For more information, visit www.fondsftq.com.


Information: The following telephone number is provided for the exclusive use of journalists and other media representatives.

Source: Josée Lagacé
Senior Press Relations and Communications Advisor
Solidarity Fund QFL
Telephone: 514-850-4835

Email: jlagace@fondsftq.com