Who Can Apply to ESSOR – Component 1C: Eligibility Guide for Québec Organizations
ESSOR – Component 1C is a provincial funding stream administered by Investissement Québec in collaboration with the Ministère de l’Économie, de l’Innovation et de l’Énergie. It supports the implementation of a digital plan to accelerate investment projects, productivity, and competitiveness in Québec. This article explains exactly who can apply to ESSOR 1C, what conditions must be met, common exclusions, and how to self-assess eligibility before preparing an application.
According to program rules, ESSOR 1C provides a non-repayable contribution for projects that stem from a recent digital plan completed under ESSOR 1B. Because this stream focuses on execution, eligibility is tied to the organization’s legal status in Québec, size and revenue thresholds, linguistic compliance, and integrity requirements, in addition to strong project-quality criteria.
Use this eligibility guide to determine whether your organization is a good fit for ESSOR – Component 1C.
Program Eligibility Overview
ESSOR – Component 1C targets organizations that:
Are operating in Québec as legally constituted businesses or qualifying social economy enterprises.
Have 250 employees or fewer and annual revenue of at least $2.5 million.
Possess a digital plan produced through ESSOR 1B, completed or updated within the last 24 months.
Are ready to implement a digital project that improves productivity, optimizes processes, or adopts best business practices.
Can meet Québec’s francization and language-related requirements where applicable and maintain a French version of their website.
While the program is broadly sector-inclusive for digital implementation, it applies Québec-only geographic requirements and includes a precise list of ineligible applicants and activities.
Applicant Type Requirements
ESSOR 1C accepts the following applicant types:
For-profit businesses that are legally constituted.
Social economy enterprises as defined under Québec law, with at least 40% of prior-year revenues coming from autonomous business activities.
Additional conditions:
The organization must be registered (immatriculated) in Québec, have a physical establishment in the province, and actively conduct commercial operations on a continuous or regular basis.
Foreign-owned businesses may be eligible if they are registered in Québec and commit to conducting continuous or regular commercial operations in Québec no later than 12 months after project authorization.
Entities that do not meet these foundational requirements are not eligible to apply.
Size and Revenue Criteria
ESSOR – Component 1C is designed for small and mid-sized organizations. To qualify, your organization must:
Employ 250 people or fewer.
Generate at least $2.5 million in annual revenue.
These thresholds are mandatory. If your employee count or revenue does not align, the application will not pass initial screening.
Geographic Eligibility (Québec Only)
ESSOR 1C is a Québec provincial program. To qualify:
Your organization must be registered in Québec and operate from an establishment located in the province.
Projects must be carried out in Québec. Activities aimed at developing markets outside Québec are not eligible under this component.
Businesses located in Montréal, Québec City, Laval, Longueuil, Gatineau, Sherbrooke, Saguenay, Lévis, Trois‑Rivières, and across all administrative regions are eligible, provided all other program criteria are met.
Project and Activity Requirements
Eligibility is closely tied to the nature and origin of the project:
The project must directly stem from the digital plan completed under ESSOR 1B and be completed or updated within the past 24 months.
The project must focus on productivity gains, process optimization, or the adoption of best business practices.
Projects must start no later than three months after authorization and finish within 12 months.
In scope:
Implementation mandates aligned with your 1B digital plan, such as ERP/CRM/MES rollout, integration and change management, data and analytics enablement, cybersecurity measures, cloud migration, e‑commerce enablement linked to process improvements, and related professional services.
Out of scope for implementation under 1C:
Human resources function activities.
Development of markets outside Québec.
Installation of equipment.
Custom solution development and routine upgrades to existing technologies.
Building a standalone transactional website unrelated to the scoped 1B plan.
These requirements ensure ESSOR 1C supports targeted digital transformation tied to a validated strategic roadmap.
Financial and Operational Criteria
Applicants must demonstrate operational capacity and compliance:
Language compliance: Organizations subject to Québec’s francization regime must provide proof of compliance, such as certification or registration with the Office québécois de la langue française. As a rule, the business must maintain a French version of its website.
Financial statements: Two most recent annual financial statements are required (at least one compilation mission).
Integrity and governance: The program evaluates managerial expertise, project governance, and the enterprise’s ability to deliver (financial, human, and technical resources).
Funding structure: The financing plan must be realistic, with private sources covering at least 50% of eligible costs. Stacking of government aid must respect program limits.
Equal access obligations: For-profit organizations with more than 100 employees seeking $100,000 or more must provide a compliance declaration related to employment equity.
These operational requirements are essential for eligibility and later-stage evaluation.
Ineligible Applicants
The following are not eligible for ESSOR 1C (including within a consortium or group of companies):
Entities listed on the Register of enterprises ineligible for public contracts (RENA), including subcontractors intended for the project.
Enterprises non-compliant with the francization process or listed as non-compliant by the language authority.
Enterprises that defaulted on obligations linked to prior Québec government aid within the preceding two years after formal notice.
State-owned enterprises, entities controlled by a government (municipal, provincial, or federal), municipal entities, or enterprises majority-owned by a Crown corporation.
Enterprises under the Companies’ Creditors Arrangement Act or the Bankruptcy and Insolvency Act.
Holding companies whose primary purpose is passive ownership.
Enterprises associated with activities that do not align with public integrity expectations, including:
Production or distribution of weapons.
Fossil fuel exploration, extraction, drilling, production, and refining, except activities explicitly supporting a low‑carbon transition.
Gambling operations (casinos, bingo halls, gaming terminals).
Activities involving violent games, combat sports with living species, races, or similar.
Sexual exploitation (e.g., erotic bars, escort agencies, erotic massage, swingers’ clubs) and pornography production.
Production, sale, and services related to tobacco or drugs, with limited exceptions for Health Canada–authorized cannabis or industrial hemp contexts (e.g., pharmaceutical‑grade products, authorized R&D, non‑authorized medical hemp products as permitted).
Investissement Québec may refuse or cease funding if an applicant or beneficiary fails to meet expected integrity standards.
Sector Notes
For digital implementation projects derived from ESSOR 1B, all sectors are eligible, provided the project is clearly tied to the digital plan and aims at productivity or process improvements. This includes:
Manufacturing, food processing, aerospace, aluminum transformation.
Transportation and warehousing, logistics.
Retail and e‑commerce, tourism and hospitality.
Healthcare, education, professional services.
Technology, SaaS, ICT, fintech.
Construction, real estate services.
Cultural and creative industries, media.
Clean tech, energy, and utilities.
Sector breadth does not waive other program requirements such as size, revenue, Québec establishment, and 1B plan recency.
Special Cases and Exceptions
Foreign-controlled subsidiaries: Eligible if registered in Québec with a commitment to sustained operations in Québec within 12 months of project authorization.
Social economy enterprises: Eligible if at least 40% of prior-year revenue is derived from autonomous business activity and all other criteria are met.
Multi-site groups, banners, and chains: If planning similar projects across multiple entities, you must confirm funding modalities in advance. Projects may require coordination to respect stacking and program thresholds.
Prior recipients of ESSOR 1B: A valid digital plan (completed or updated within 24 months) is required for 1C.
These cases often require additional documentation or pre-validation to avoid delays.
Prior Plan Requirement (Link to ESSOR 1B)
A valid digital plan from ESSOR 1B is mandatory:
It must be the sole source plan for the 1C application.
It must have been completed or updated in the last 24 months.
The proposed 1C project must clearly derive from this plan, with explicit alignment to recommended actions and timelines.
Applications without a qualifying 1B plan will be deemed ineligible for 1C.
Stacking and Other Funding Considerations
ESSOR 1C follows Québec government stacking rules:
Government non-repayable aid counts at 100% of its value toward stacking limits.
Government repayable aid counts at 50% of its value.
For 1C, cumulative government assistance is limited relative to eligible costs and must comply with the program’s maximum stacking rate and private contribution requirement.
Ensure you disclose all other public funding (grants, tax credits, loans, guarantees) planned for the project.
Evaluation Considerations (Why Eligibility Is Not Enough)
Meeting eligibility does not guarantee approval. Applications are assessed on:
Project relevance and alignment with ESSOR objectives.
Governance quality and the project team’s expertise.
Quality of the digital plan, realism of schedule and financing, and partner commitments.
Expected outcomes for productivity, competitiveness, and job quality.
The incentive nature and necessity of public funding.
Fit with your business model and capacity to execute.
These factors influence selection among compliant applications, subject to budget availability.
Common Eligibility Pitfalls
Missing or outdated ESSOR 1B digital plan (older than 24 months).
Not meeting the 250-employee or $2.5 million revenue thresholds.
Lack of Québec immatriculation or absence of an active Québec establishment.
No French version of the corporate website or non-compliance with francization requirements when applicable.
Projects that focus on excluded activities (HR function, equipment installation, routine upgrades, custom builds, foreign market development).
Integrity issues (RENA listing, insolvency proceedings, prior defaults).
Address these risks before starting your application.
Self-Assessment Checklist
Use this quick yes/no checklist to assess fit:
We are a legally constituted for-profit business or a qualifying social economy enterprise. [Yes/No]
We are registered in Québec, have a local establishment, and operate continuously or regularly. [Yes/No]
We have 250 employees or fewer and at least $2.5M in annual revenue. [Yes/No]
We completed or updated an ESSOR 1B digital plan within the last 24 months. [Yes/No]
Our project directly implements actions from that plan to boost productivity or optimize processes. [Yes/No]
We maintain a French version of our website and comply (or will comply) with francization obligations. [Yes/No]
Our financing plan includes at least 50% from private sources and respects stacking limits. [Yes/No]
We are not on RENA, not under insolvency/bankruptcy proceedings, and have no recent defaults. [Yes/No]
Our project activities are in scope for 1C and not excluded. [Yes/No]
If you answered “Yes” to all, your organization likely meets core ESSOR 1C eligibility conditions.
Timelines and Program Status
As of today, ESSOR remains active with a rolling intake, subject to budget availability. Projects authorized under Component 1C must start within three months of approval and finish within 12 months. Applicants should plan early and account for internal approvals, supplier quotes, and documentation.
Conclusion
ESSOR – Component 1C is designed for Québec organizations ready to implement a recent ESSOR 1B digital plan to drive measurable productivity and process improvements. Eligibility hinges on being established in Québec, meeting size and revenue thresholds, maintaining linguistic compliance, and proposing an in-scope project aligned to the 1B roadmap. Use the checklist above to self-assess and prepare the right documents before applying. When in doubt, validate edge cases—such as multi-entity rollouts, social economy status, or foreign-owned subsidiaries—early to avoid delays.
