By Émile Audet
October 20, 2023
The Fourth Component of ESSOR: Support for Business Internationalization
The ESSOR program, created by the Economic Development Fund (FDE), is an essential lever for stimulating the growth and competitiveness of Quebec companies. Comprising four distinct components, this program offers valuable financial support to help companies prosper in the marketplace. One of these components, the fourth, focuses specifically on the internationalization of companies, covering a wide range of projects aimed at expanding their presence abroad. Here's an overview of the main aspects of ESSOR's fourth component, and the benefits it offers companies wishing to establish themselves on the international scene.
What is the ESSOR program?
The ESSOR program, created by the Economic Development Fund (FDE), aims to propel Quebec businesses forward by improving their productivity and competitiveness. To achieve this, the program encourages investment projects by offering subsidies and advantageous loans to companies. Comprising four components, the ESSOR program offers various measures to support companies in their development. Thanks to the ESSOR program, Quebec businesses can benefit from financial and strategic support to help them grow and become more competitive in the marketplace.
What projects are covered by the fourth component?
The fourth component covers a wide range of projects related to international and export activities. This includes the acquisition of goods transit facilities, which would facilitate the flow of products to other countries. The formation of joint ventures with foreign partners is also included under this heading, in order to develop new business opportunities abroad. The acquisition of distribution networks is another possibility offered, which would extend the reach of products abroad. In addition, companies have the option of acquiring businesses outside Quebec to expand their presence on the international market. Finally, an option is also offered to open a commercial office or subsidiary abroad, which would strengthen the company's presence in a foreign country. In short, the fourth component of the program covers a variety of projects designed to promote exports and international expansion for Quebec businesses.
Which companies can benefit?
For-profit companies, cooperatives and social economy enterprises are all eligible. However, it should be noted that certain sectors are not accepted. These include the primary sector, mining, real estate, construction, public services, management of companies and enterprises, healthcare, education, public administration, finance and insurance, culture, telecommunications, broadcasting and catering. Outside these sectors, all for-profit companies, cooperatives and social economy enterprises are eligible for the benefits offered by these measures. By allowing these different businesses to benefit from these measures, the government is ensuring that it supports the economy as a whole, and promotes recovery after a difficult period.
What assistance is available?
We offer different types of financial assistance. Firstly, there is the repayable contribution, which consists of a loan granted to companies. This loan must be repaid according to the agreed terms. Then there's the loan guarantee and the equity investment, which involves investing in a company's capital. This gives the aid organization a degree of control over the company's strategic decisions. Finally, there's the non-repayable contribution, also known as a grant. This financial aid is granted without any repayment conditions. It can be used to finance specific projects or to support the company's general operations. These different forms of financial aid provide companies with financing tailored to their needs and financial situation. This enables them to develop their activities, create jobs and contribute to the economy.
How to take part?
To take part in the fourth stage of the program, it's important first to check that your company meets the established criteria. These criteria often relate to company size, sector of activity and internationalization potential. Once you've checked that your company is eligible, you can start looking for a relevant internationalization project. It's important that this project is in line with your company's objectives, and that it can be carried out within the set timeframe. For more information on this fourth component of the program, please call 1 844 474-6367. Our advisors will be happy to answer your questions and guide you through the various steps you need to take to participate.
Highlights of the fourth phase of ESSOR
In conclusion, the ESSOR program plays a key role in supporting the growth and internationalization of businesses in Quebec. Here are five key points to bear in mind regarding the fourth component of this program, which focuses on business internationalization:
- Eligible projects: The fourth component covers a wide range of export-related projects, including the acquisition of goods transit facilities, the formation of foreign joint ventures, the acquisition of international distribution networks, the acquisition of businesses outside Quebec, and the opening of commercial offices abroad.
- Business eligibility: For-profit businesses, cooperatives and social economy enterprises are eligible for these measures, with the exception of certain excluded sectors.
- Types of financial assistance: Companies can benefit from various types of financial assistance, including repayable contributions in the form of loans, loan guarantees and equity investments, as well as non-repayable contributions (grants).
- Participation process: To participate, it is essential to verify your company's eligibility, identify a relevant internationalization project, and contact 1 844 474-6367 for further information and guidance on the steps to follow.
- Support for international growth: By supporting the internationalization of businesses, the fourth component of ESSOR helps to strengthen the Quebec economy by opening up new international business opportunities.
Related Tags
Business aid
Grants
Digital transformation
Government aid
About the author
Émile Audet
Canadian grants specialist
Working at helloDarwin for some time now, I'm in charge of providing you with the information you need on government aid. Dedicated to helping companies in Quebec and Canada reach their full potential, I write on the helloDarwin blog about the various programs, allowances and funding available to enable organizations to make their digital transformation through access to federal and provincial support.
Frequently asked questions about ESSOR
What is the ESSOR program?
The ESSOR program is an Investissement Québec initiative designed to help and support Quebec companies in their growth. By focusing on digital transformation, the program aims to improve the competitiveness and development of businesses. The program contains four distinct components covering important aspects of the economic future of companies and of Quebec.
Who is eligible for ESSOR?
For-profit companies, cooperatives and collective enterprises operating in Quebec are eligible for the program. All sectors are eligible for the diagnosis and implementation of a digital plan, and can then access the projects covered by the first component. However, companies in certain sectors are not eligible to participate in the different components of the program.
See our articles on Components 1, 2, 3 and 4 to learn more.
What kind of project are covered by ESSOR?
The projects covered by ESSOR aim to accelerate the growth and development of companies in Quebec. The first component covers the realization of investment projects, notably through the analysis, evaluation and implementation of digital plans. The second covers projects that improve productivity through expansion, new business creation, capacity enhancement and modernization. The third component supports projects that reduce the environmental footprint and, finally, the fourth component targets internationalization and expansion outside the Quebec market.
What type of help is offered by ESSOR
The ESSOR program offers several types of assistance. Investissement Québec supports Québec companies by offering repayable loans, loan guarantees and equity investments of less than 50%. In addition, subsidies may be offered to companies. Assistance amounts vary according to project size, type and corresponding component.
Why take part of the ESSOR program?
Participating in the ESSOR program enables companies to pursue their growth and development, while also benefiting from help with their digital transformation, an essential factor in today's environment.