What PSCE – Component 2 Can Fund: Eligible Expenses, Rates, and Limits
As of December 1, 2025, Investissement Québec indicates the Program to Support Commercialization and Exports (PSCE) ended on March 31, 2025 and is in renewal. Always confirm current intake and rules before planning budgets or submitting claims. (investquebec.com)
PSCE – Component 2 (often called “Stream 2 PSCE”) is a provincial, non‑repayable contribution designed to strengthen Québec SMEs’ export capacity and accelerate projects in markets outside Québec. This guide explains what PSCE – Component 2 can fund, with clear examples of eligible expenses, the degressive aid rates (50/40/25), annual caps, and documentation expectations so your organization can plan compliant budgets. (investquebec.com)
Program Funding Overview
Purpose: Support commercialization and export projects that target markets outside Québec, helping small and medium‑sized enterprises scale revenue and market presence beyond the province. (investquebec.com)
Funding model: Non‑repayable contribution (grant/subsidy) reimbursing a share of approved, eligible expenses. (investquebec.com)
Core limits (typical for Component 2):
Maximum assistance up to $100,000 per company, per year.
Minimum eligible expenditures per project: $25,000.
Minimum private contribution: 25% of total project costs.
Cumulative government aid cap: up to 65% of eligible expenses (all public sources combined).
Degressive rates across successive projects within the program: 50% for the first project, 40% for the second, 25% for subsequent projects (applies across the program period). (investquebec.com)
Note: Program mechanics, rates, and limits can be updated at renewal. Organizations should validate current rules directly with Investissement Québec before incurring costs. (investquebec.com)
Funding Amounts & Rates
PSCE – Component 2 generally shares eligible costs according to a declining (degressive) rate structure:
First approved project: up to 50% of eligible expenses.
Second approved project: up to 40% of eligible expenses.
Third and subsequent projects: up to 25% of eligible expenses.
Yearly cap: funding typically cannot exceed $100,000 per company per year under the program.
Stacking cap: the total of all public funding for the same eligible expenses normally cannot exceed 65%.
Minimum project size: budget at least $25,000 in eligible costs to qualify. (investquebec.com)
Illustrative calculation examples
Example A (first project): $120,000 in eligible costs to enter the U.S. Midwest.
Rate: 50% → potential PSCE share $60,000; private share at least 25% of total costs; stacking must remain ≤ 65%. (investquebec.com)
Example B (second project): $80,000 in eligible costs for certifications and EU launch.
Rate: 40% → potential PSCE share $32,000, subject to the annual $100,000 cap across all approved projects. (investquebec.com)
Example C (subsequent projects): $200,000 in eligible costs for Asia‑Pacific rollout.
Rate: 25% → potential PSCE share $50,000, again subject to the $100,000 annual cap and stacking limits. (investquebec.com)
These percentages apply to eligible costs only; ineligible or capped categories reduce the reimbursable base. (investquebec.com)
Eligible Expenses
The program targets commercialization and export development costs incurred to access markets outside Québec. Typical eligible cost categories include the following; final eligibility depends on official guidelines and approved budgets.
Strategy, Diagnostics, and Market Studies
Export readiness diagnostics and commercialization plans for specific out‑of‑province or international markets.
Purchase of market research, sector reports, data subscriptions, and competitive analyses tied to your export plan.
Advisory services for regulatory pathways, pricing, channel strategy, and market entry sequencing. Note: professional fees per project are subject to a global cap (see “Limits and Caps” below). (investquebec.com)
Marketing and Demand Generation for Foreign Markets
Branding and messaging adjustments for target markets outside Québec, including creative adaptation.
Digital marketing directed at foreign audiences: search engine optimization in target languages, paid search/social campaigns, newsletters, and content marketing; annual fees to access online marketplaces can be eligible but combined ad/SEO/newsletter/platform access costs are subject to a cap. (investquebec.com)
Website localization and translation for non‑Québec markets, including UX adjustments for regional compliance. (investquebec.com)
Trade Missions, Events, and Business Development Travel
Registration fees, booth/kiosk design and rental, and on‑site services for trade fairs, expos, and targeted B2B events outside Québec.
Travel and accommodation for export missions and sales trips directly related to the approved project; per‑diem and class‑of‑travel rules follow program guidance. (investquebec.com)
Certifications, Standards, and Compliance for Target Markets
Certification fees, audits, testing, and quality standards required to sell in the target market (e.g., FDA/CE analogues, sector certifications).
Legal and compliance services for contracts, distribution, labelling, and product safety where necessary to commercialize abroad. (hellodarwin.com)
Intellectual Property and Brand Protection
Trademark registration and related IP protection activities in foreign jurisdictions when directly linked to market entry. (hellodarwin.com)
Sales Enablement and Market Entry Execution
Temporary hiring of external market development specialists, in‑market representatives, or distributors (service contracts).
Translation and professional localization of sales collateral, proposals, and customer‑facing materials.
Limited setup costs related to establishing a presence in a foreign market (e.g., representative office) when directly tied to commercialization; scope and amounts are reviewed case‑by‑case. (hellodarwin.com)
Important: Some categories carry specific caps across items such as professional services and combined digital advertising/SEO/newsletter/online marketplace access; ensure your budget respects these limits to avoid reductions. (investquebec.com)
Ineligible Expenses
While final determinations rest with Investissement Québec at application and claim review, organizations should expect the following to be out of scope or frequently disallowed:
Routine operating expenses not tied to the approved export project (rent, utilities, generic overhead).
Capital purchases and equipment not clearly and directly tied to commercialization deliverables (or not permitted under guidelines).
Salaries and internal labour that do not meet program definitions or documentation standards; routine payroll is typically excluded.
Hospitality, gifts, entertainment, and alcohol.
Fines, penalties, interest charges, and financing fees.
Recoverable taxes (e.g., GST/QST credits) and exchange losses.
Costs incurred before the project start date or outside the approved project period.
Domestic marketing that targets Québec customers rather than out‑of‑province or international markets. (investquebec.com)
When in doubt, obtain written confirmation on contested items before incurring expenses.
Limits and Caps to Plan Around
The PSCE “client kit” highlights several program‑wide limits that affect how much of certain categories you can claim:
Professional fees: capped at $25,000 total per project (Volets 2 and 3).
Combined digital spend cap: advertising, social media publications, newsletters, SEO, and annual online marketplace access fees together cannot exceed $15,000 per project.
Degressive rates: 50% for the first project, 40% for the second, 25% thereafter across the PSCE program period ending March 31, 2025 (rate logic subject to renewal updates).
Annual assistance cap: up to $100,000 per company per year.
Stacking cap: cumulative public funding for the same costs must not exceed 65%.
Minimum private contribution: at least 25% of total project costs. (investquebec.com)
These caps are applied during both budget review and claim processing; exceeding them leads to reductions.
Expense Documentation Requirements
To be reimbursed, maintain a complete audit trail:
Clear scope and deliverables for each supplier contract and quote, aligned to the approved budget.
Dated invoices referencing deliverables, market(s) targeted, and time periods.
Proof of payment (bank statements or payment confirmations) matching invoice amounts and currencies.
Evidence of performance: campaign dashboards, screenshots, localized assets, event registrations, certification reports, IP filings, and travel proofs (boarding passes, hotel folios).
For external personnel, attach time records or deliverable logs that substantiate rates and outputs.
Currency conversion details for foreign invoices, using consistent, documented exchange rates.
A summary schedule mapping each receipt to the approved cost category.
Retain originals and digital copies; Investissement Québec may audit files and request clarifications. (investquebec.com)
Examples of Funded Projects
Use these realistic, simplified scenarios to understand coverage. Final amounts depend on approval, category caps, and annual limits.
Market launch with mixed activities (first project)
Activities: export plan, website localization, paid search in the U.S., trade show, and certification.
Eligible costs: $120,000; professional fees portion $22,000; combined digital items $14,500 (within cap).
Rate: 50% → potential reimbursement $60,000 (subject to annual $100,000 cap and stacking). (investquebec.com)
Certification‑led expansion (second project)
Activities: testing, audits, packaging compliance, targeted PR for EU, distributor roadshow.
Eligible costs: $80,000; professional fees $18,000; combined digital items $10,000.
Rate: 40% → potential reimbursement $32,000. (investquebec.com)
Multi‑market rollout (subsequent project)
Activities: in‑market rep contract, online marketplace access, trade fair circuit, IP protection.
Eligible costs: $200,000; professional fees $25,000 (at cap); combined digital items $15,000 (at cap).
Rate: 25% → potential reimbursement $50,000; ensure total assistance across all projects remains ≤ $100,000 for the fiscal year. (investquebec.com)
Funding Disbursement & Claiming Process
PSCE assistance is typically reimbursed after costs are incurred and substantiated. Expect these general steps:
Obtain written approval for the project scope, budget, eligible categories, and rates.
Execute the activities within the approved period; collect documentation contemporaneously.
Submit claims with invoices, proofs of payment, deliverables, and mapping to approved categories.
Respond to clarifications; reimbursements are issued for eligible, verified costs within the applicable caps and rates. (investquebec.com)
Processing timelines vary and may be affected by volume and program status. Confirm current procedures with Investissement Québec’s Service d’accueil. (investquebec.com)
Stacking Rules
You can generally combine PSCE with other public programs (e.g., certain federal export supports) if the cumulative public contribution stays within 65% of eligible costs and each funder’s rules allow stacking. Always disclose other assistance in your application and claims, and adjust cost‑sharing accordingly. (investquebec.com)
Real‑World Budgeting Tips
Aim above the $25,000 minimum per project so fixed costs and caps do not erode reimbursement ratios. (investquebec.com)
Track professional fees and digital advertising/SEO/newsletter/marketplace items against their per‑project caps of $25,000 and $15,000 respectively; reallocate spend if you approach the limits. (investquebec.com)
Phase work to leverage the higher rate on your first project; reserve lower‑priority activities for subsequent projects (subject to renewal/availability). (investquebec.com)
Keep stacking under 65% when combining with federal or municipal funding; pre‑calculate your private share (≥ 25%) and secure it before launch. (investquebec.com)
Build a strong documentation routine—supplier contracts, deliverables, and payment proofs—so claims clear quickly.
Confirm program status and any updated rules before incurring costs given the renewal context as of December 1, 2025. (investquebec.com)
Conclusion
PSCE – Component 2 helps Québec SMEs fund practical commercialization and export activities outside Québec through a non‑repayable, degressive cost‑sharing model. By budgeting within the $100,000 annual cap, observing the 50/40/25 rates, meeting the $25,000 minimum, staying within per‑category caps, and documenting every expense carefully, organizations can structure compliant projects and accelerate revenue growth in new markets. Always verify current intake and any renewal changes directly with Investissement Québec before proceeding. (investquebec.com)
