Investissement Québec helps province’s head offices
MONTREAL • Investissement Québec’s role as an emergency lender to companies hit by the COVID-19 crisis is providing the government- owned investment agency with opportunities to safeguard head offices in the province.
IQ has received about 600 financial aid requests from Quebec- based companies for a combined total of $ 1.5 billion since the pandemic began, chief executive Guy Leblanc said. About half of all requests — each for sums exceeding $ 50,000 — have already been analyzed, authorized and processed, which leaves about 250 files under study, he said.
“IQ has a mandate to protect head offices, and there are companies in Quebec that have run into financial trouble because of the crisis,” Leblanc told the Montreal Gazette in a phone interview. “We’ve sat down with many companies to review their capital structure. In some cases, if appropriate, we could take an equity stake. Buying a stake can be a great opportunity to have a say on governance or on a company’s strategic orientations.”
Leblanc didn’t identify the companies in which IQ might invest, though Economy Minister Pierre Fitzgibbon cited footwear retailer Aldo Group in an interview this week as a possible investment target for Quebec.
Premier François Legault said in March his government would set aside at least $ 2.5 billion to help Quebec companies overcome liquidity problems caused by the pandemic. Shortly after winning the 2018 election, Legault vowed to protect local companies such as SNC-Lavalin Group from foreign takeovers.
About three- quarters of all approved financing requests resulted in loan guarantees, with IQ itself making loans in the remaining 25 per cent of cases, Leblanc said. Companies in all sectors of the economy have received financing, he said.
“This is a broad- based effort,” he said. “The aid program has worked very well. It was an emergency situation. Companies needed short-term liquidity.”
IQ recently added about 300 employees by consolidating three other teams dedicated to economic development — regional employees of the economy ministry, as well as staffers from Export Québec and the Centre de recherche industrielle du Québec. The move aims to make it easier for entrepreneurs to get advice and financing, Leblanc said.
“Previously there were too many separate entities,” he said. “It’s better if you deal with a one-stop shop.”