ESSOR is aimed at Quebec-based for-profit companies operating in the province. In addition, this initiative is also aimed at collective enterprises. However, certain eligible sectors and industries depend on the program component. Thanks to ESSOR, these companies can access additional financial resources to develop their activities and thus contribute to the economic prosperity of the province of Quebec.

By Émile Audet

April 10, 2025

What is the ESSOR financing program?

Q: What is the ESSOR financing program?

The ESSOR financing program is a government tool set up within the framework of the Economic Development Fund (FDE). Its aim is to meet the financing needs of companies and support them in carrying out their investment projects.

In an ever‑changing economic context, Québec’s small and medium‑sized enterprises (SMEs) are looking to innovate, modernize and increase their competitiveness. To achieve this, they often need to invest in new projects—whether it be expanding their facilities, improving their processes or adopting digital technologies. Yet carrying out an investment project comes with its share of challenges: preliminary studies, cost‑benefit analyses, strategic planning… This is where the ESSOR grant offered by Investissement Québec comes into play, a financial‑support program designed to help SMEs make their investment projects a reality.

ESSOR is a framework program of the Government of Québec administered by Investissement Québec. Its goal is to stimulate economic growth by supporting businesses in the completion of structuring projects. In this article, we take stock of the ESSOR program, with a special focus on its components 1a, 1b and 1c (feasibility studies, digital diagnostics, digital plans). For each one, we explain the objective, the eligibility criteria, the types of projects supported and the financial assistance offered, illustrated with concrete examples. Finally, we offer some practical tips and a call to action to help your SME take full advantage of this grant.

What is the ESSOR program? The ESSOR program is a financial‑aid mechanism put in place by the Government of Québec and administered by Investissement Québec. It aims to encourage and speed up the completion of investment projects within Québec companies by offering them financial support tailored to different key stages. Whether you are considering opening a new plant, modernizing your production line or digitizing your business processes, the ESSOR program can step in to reduce the financial burden of your efforts.

Several complementary components: ESSOR is broken down into several components, each targeting one aspect of a project’s implementation cycle. Components 1a, 1b and 1c—on which we will focus—support the company upstream of the project, i.e., during the preparation and study phase. They offer grants (non‑repayable contributions) to carry out feasibility studies, diagnose the company’s digital needs and develop digital action plans. Downstream, other components of the program take over to support the concrete implementation of the investment project. For example, there is a component that can financially support the acquisition of equipment or the construction of facilities (often in the form of loans or loan guarantees, or even financial contributions for certain strategic projects). Without going into detail, remember that the ESSOR program offers a continuum of support ranging from the initial study to the final completion of the project.

Component 1a: Feasibility studies

Objective of component 1a: Enable companies to verify the viability of a project before investing heavily. A feasibility study evaluates all aspects of a contemplated investment project: technical feasibility, market potential, financial projections, operational impacts, etc. The ESSOR program’s assistance for component 1a aims to reduce the cost of these indispensable preliminary studies, so that the SME can make an informed decision on whether to pursue the project.

Eligibility criteria: This component is aimed at companies established in Québec that are planning a significant investment project. In general, the SME must show that it has a concrete project under study (for example, the acquisition of major equipment, the establishment of a new production line, the construction or expansion of a facility, the development of a new product requiring investments, etc.). The targeted investment project must have positive economic spinoffs (company growth, job creation or retention, innovation, productivity increase, etc.). It is important to note that the grant application usually has to be approved before the company incurs the expenses related to the feasibility study, so that these expenses are recognized as eligible.

Expenses and projects supported: Component 1a covers expenses related to carrying out the feasibility study. This typically includes the fees of external consultants (engineering firms, management‑consulting or market‑research firms) who will conduct the analysis. Depending on the nature of the project, the study may include, for example:

A technical analysis to check whether the project is feasible in terms of production or technology (e.g., evaluating different equipment or process options).
A market analysis to estimate demand, competition and potential market shares for the new product or service considered.
A financial analysis to budget the required investment, future operating costs, and project the expected revenues or savings (calculation of return on investment, payback period, etc.).
An examination of regulatory, environmental or logistical issues related to the project.

At the end of the study, the company thus has a complete report enabling it to decide knowledgeably whether (or not) to move forward with the project and to fine‑tune its business plan or financial package.

Financial assistance offered: Investissement Québec’s support takes the form of a non‑repayable contribution (grant) that covers part of the study’s costs. Specifically, the financial aid can cover up to 50 % of eligible expenses related to the feasibility study. A maximum ceiling is set for this support—for example, Investissement Québec mentions aid of up to C$100,000 for a feasibility study, depending on the scale of the project. This means that if your study costs, say, C$80,000, the grant could cover up to C$40,000 (subject to approval of the file), thereby reducing the amount the company has to pay.

Concrete example: Imagine a manufacturing SME with 50 employees that wants to launch a new automated production line in its plant. This investment project is ambitious—it could require the purchase of new machines and the reorganization of the plant at an estimated cost of several million dollars. Before jumping in, management wants to know whether the investment is worthwhile: will there be sufficient demand for the new product? What efficiency or cost gains will robotization bring? Thanks to component 1a of the ESSOR program, the SME can have a feasibility study carried out by a specialized firm. Such a study on a project valued at C$10,000,000 might cost around C$100,000 in expert and engineering fees. The ESSOR grant, covering up to 50 % of that amount, would cover C$50,000, leaving C$50,000 to be paid by the SME. At the end of the study, the report shows that the project could increase production capacity by 30 % and generate a return on investment within five years. Armed with these reassuring conclusions, the company can then decide to go ahead, backed by solid data to convince its financial partners (bank, investors) to follow it in this venture.

Component 1b: Digital diagnostics

Objective of component 1b: Help companies take stock of their level of digital maturity and target possible technological improvements. A digital diagnostic is an in‑depth assessment of the use of digital technology within the company. The objective is to identify gaps, inefficiencies or opportunities for optimization through technology, in order to guide the company in its digital transformation. By partially funding these diagnostics, ESSOR encourages SMEs to undertake this assessment, the first step toward modernizing their processes.

Eligibility criteria: This component is aimed at any Québec SME wishing to optimize its processes through digital technology. Whether your company is in manufacturing, services or distribution, if you are considering adopting new technological tools or digitizing your operations, you may be eligible for the digital diagnostic. It is not necessary to have a specific investment project already defined (unlike component 1a)—on the contrary, the diagnostic often serves to bring potential projects to light. However, the company must show a serious intention to improve its performance through digital technology. It is also advisable to submit the grant application before launching the diagnostic, to ensure that its costs will be eligible.

What is covered: The digital diagnostic, generally carried out by an external consultant specialized in information technology or process optimization, will review various aspects of the company, for example:

Operational processes (production, supply chain, inventory management, quality, etc.) to identify those that could be automated or better equipped digitally.
Existing information systems (management software, databases, internal communication tools, etc.) to assess whether they are adequate, integrated and secure, or whether there are gaps.
The digital skills of the staff and the corporate culture regarding technological change.

The result of the diagnostic is a comprehensive evaluation report. This report paints a picture of the company’s current digital state (strengths and weaknesses) and makes concrete recommendations. These may include, for example, implementing an ERP package to centralize management, adopting sensors and analytics tools to monitor production in real time, or training employees in digital tools. The diagnostic can also prioritize initiatives according to their impact and feasibility, thus providing the company with an initial roadmap for its digital transformation.

Financial assistance offered: ESSOR’s support for a digital diagnostic takes the form of a grant covering a significant portion of the consultant’s fees or expenses related to the exercise. Typically, up to 50 % of the eligible costs of the diagnostic can be covered. The maximum amount of aid is capped (the scope of a diagnostic being more limited than a feasibility study). As an indication, the maximum aid for a digital diagnostic is about C$20,000 per project. In other words, if the diagnostic costs C$40,000, the company could receive up to C$20,000 in grants to cover the cost. Of course, smaller‑scale diagnostics (for example costing C$10,000) are just as eligible, with a coverage of C$5,000 in that hypothetical case.

Concrete example: Imagine a metal‑parts manufacturing company employing 30 people whose production and inventory‑management processes are still largely manual or handled via Excel spreadsheets. Management notes frequent delays and errors in deliveries and suspects that better use of digital tools could increase efficiency. By taking advantage of component 1b of ESSOR, the company hires a digital‑transformation expert to perform a diagnostic. The consultant spends a few weeks on site, analyzes work methods, the software used, and gathers needs from key employees. His diagnostic report reveals, for example, that implementing an integrated management software (ERP) would reduce data‑entry errors and improve production planning, while installing IoT sensors on machines could optimize preventive maintenance. He also recommends training staff in digital tools. This diagnostic, billed at C$15,000, was subsidized at 50 % by ESSOR, so the company paid only C$7,500. Now, the SME has a clear list of digital projects to undertake, with an idea of the costs and benefits at stake. It can move forward with confidence, knowing where to start its digital transformation.

Component 1c: Digital plans

Objective of component 1c: Support the company in the detailed planning of its digital transformation. If the diagnostic (component 1b) identified what to do, the digital plan aims to define how to do it. In other words, it is a concrete action plan to implement one or more digital solutions within the company. Component 1c of the ESSOR program financially helps SMEs to develop these transformation plans so that they can move from idea to execution with a well‑defined course.

Eligibility criteria: To benefit from component 1c, the company must generally have identified a specific digital project to carry out. Often, this project stems from a prior digital diagnostic (carried out via component 1b or by other means), but this is not a formal requirement if the company already knows which digital initiative it wants to deploy. The main thing is to demonstrate a clear vision of a digital‑transformation project—for example: implementing a new software system (e.g., an ERP), automating part of production, or deploying an online sales platform. As with the other components, the aid request must be approved before significant expenses related to developing the plan are incurred.

Content of the digital plan: Concretely, the digital plan is a document (or a series of documents) that details the roadmap of your technological project. With the help of an advisor or a specialized firm, the SME will:

Precisely define the functionalities and requirements of the digital solution to be implemented (specifications or technical requirements).
Evaluate and compare the available options (for example, choosing between several software packages or technologies, selecting potential suppliers).
Establish an implementation schedule with project stages, key milestones and the sequence of actions (design, development, installation, testing, training, deployment phases).
Estimate the necessary resources: detailed budget (license costs, equipment, consulting services, training, etc.), human resources (involved teams, recruitment or subcontracting needs), and other logistical elements.

In the end, the company has a true game plan to carry out its digital project. This plan will serve as a guide during implementation and increase the chances of the project’s success by having anticipated the challenges.

Financial assistance offered: As with the diagnostic, the ESSOR program offers a grant that covers part of the costs related to developing the digital plan. Similar parameters apply: up to 50 % of eligible expenses can be reimbursed through component 1c. The financial‑aid ceiling is generally around C$20,000 per digital‑plan project (this indicative figure may vary according to the scope of the plan to be developed). For example, for a plan to implement new software estimated at C$30,000 in consultant and analyst fees, the grant could cover C$15,000, with the other half remaining payable by the company.

Concrete example: Following its digital diagnostic carried out with component 1b, let’s take the example of a metal‑parts company that has decided to implement an ERP system in its operations as a priority. Component 1c then allows it to finance the development of the ERP implementation plan. With the help of an expert, the SME will design a detailed plan: selecting the ERP software best suited to its needs, a data‑migration plan from the old systems, training employees on the new platform, a deployment schedule by department, etc. Suppose this planning mandate is billed at C$25,000 by a specialized firm. Thanks to ESSOR, the company would obtain a grant of C$12,500 (50 %), reducing the direct cost accordingly. At the end of this digital plan, the SME has a clear scenario to implement its ERP over about 12 months, with a precise budget and an established timeline. Equipped with this plan, the company can move on to the purchase and implementation of the software, having previously secured management and employee support and possibly seeking additional financing (bank loans, etc.). This example illustrates how component 1c helps turn an intention into a concrete, executable project.

Component 2: Support for investment projects promoting productivity and business expansion (Productivity worksite)

Component 2 of the ESSOR program aims to provide financial support for investment projects that promote productivity and business expansion. The program financially supports eligible Québec companies seeking to increase their productivity and expand through technological innovation and investment. Financial support can take the form of repayable contributions, loan guarantees, equity participations and non‑repayable contributions. Companies from all sectors are eligible, with a few exceptions. Projects must involve at least C$100,000 in eligible expenses and must aim to increase production capacity, modernization or a technological transition.

Component 3: Support for investment projects promoting a reduction in environmental footprint

Component 3 of the ESSOR program offers financial support for investment projects aimed at a significant reduction of a company’s environmental footprint. This component is specifically for projects with a minimum value of C$100,000. Companies wishing to benefit from this support must demonstrate their willingness to use clean technologies in order to conserve natural resources. Financial assistance is available in the form of loans, equity participations (shares) and grants. The main objective of this component is to promote the sustainable development of companies by encouraging their transition to more environmentally friendly practices. By investing in projects that reduce the environmental footprint, companies contribute to environmental preservation while improving their own economic performance.

Component 4: Support for business internationalization

Component 4 of the ESSOR program is dedicated to supporting business internationalization. This program aims to provide resources and financial support to Québec companies in their process of expansion abroad. Participating companies can benefit from financial assistance in various forms such as loans, loan guarantees, equity participations or grants. One of the export strategies encouraged by this component is the acquisition of facilities for the transit of goods, which allows companies to optimize their logistics chain and offer more efficient services to their international clients. In addition, companies can also consider forming joint ventures with foreign partners, which allows them to share the risks and costs associated with international expansion. The acquisition of distribution networks abroad is also encouraged, as this allows companies to access new markets more easily. Furthermore, companies can be supported in their projects to acquire businesses located outside Québec, which can offer significant growth opportunities. Finally, component 4 also encourages the opening of offices or subsidiaries abroad, which allows companies to strengthen their presence in international markets.

Tips and call to action for SMEs

Components 1a, 1b and 1c of the ESSOR program are powerful tools for preparing and planning your investment projects. How can you make the most of them for your business? Here are some concrete recommendations:

Inform yourself and check your eligibility: Start by consulting Investissement Québec’s official information (ESSOR program website, guides, etc.) to fully understand the criteria of each component and verify that your company and your project are eligible. Do not hesitate to contact an Investissement Québec advisor to validate your preliminary eligibility; they can guide you to the component most appropriate for your situation.
Clearly define your project or need: Take the time to precisely formulate what you wish to accomplish. Is it to verify the feasibility of an investment idea? To diagnose your processes to find digital improvements? To develop the execution plan of an already defined digital project? The clearer your objective, the easier it will be to assemble a convincing file and choose the right grant component.
Gather the necessary elements for the application: Prepare a clear description of your project (context, objectives, expected results) and a detailed quote from a provider (consultant or specialized firm) for carrying out the study, diagnostic or plan envisaged. Investissement Québec will review these documents to ensure the project’s relevance and the realism of the costs before granting the subsidy.
Submit your aid application: Once your file is complete (form filled out, supporting documents and quote obtained), submit it to Investissement Québec. Be sure to clearly explain how the proposed study or plan will help you carry out your investment project and what benefits your company will derive from it. Highlight the anticipated positive spinoffs (growth, efficiency, jobs, etc.) to support your application.
Move from study to action: Obtaining an ESSOR grant is only one step. Capitalize on the results obtained to make your project a reality. If the feasibility study is conclusive, take action to launch your investment project (seek the necessary financing if applicable). If the digital diagnostic reveals areas for improvement, promptly commit to implementing them—for example by developing a digital plan (component 1c) or by directly launching the recommended changes. And if you now have a detailed digital plan in hand, put it into action without delay.

In conclusion, the ESSOR grant from Investissement Québec represents an opportunity to seize for Québec SMEs—whether it is to validate an ambitious project, modernize their working methods or start a digital transformation. Components 1a, 1b and 1c offer financial support and valuable guidance to reduce risks and optimize your chances of success. By taking advantage of these measures, you invest in the long‑term competitiveness of your company while benefiting from a welcome boost.

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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?

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.