Who Can Apply for ESSOR Component 2: Eligibility Criteria

ESSOR – Component 2 is a strategic funding initiative designed to boost the productivity and expansion of businesses in Quebec through technological investments. This program offers various financial aids, including repayable contributions and loan guarantees, aiming to support companies in establishing or expanding their operations within the province. Understanding who can apply for this program is crucial for businesses looking to leverage public funding for their growth projects.

Program Overview

The ESSOR – Component 2 program is tailored to assist businesses in Quebec to enhance their productivity through innovative technological transitions or acquiring new technologies. It supports investment projects that drive business expansion, whether by establishing new enterprises or expanding existing ones in Quebec. The program is open to a diverse range of sectors, with specific exclusions that applicants must be aware of.

Applicant Type Requirements

To qualify for ESSOR – Component 2, your organization must be either a for-profit company or a social economy enterprise. Businesses must be registered in Quebec and actively conduct activities within the province to be eligible for financial support. Additionally, foreign enterprises must commit to conducting activities in Quebec within twelve months following project approval.

Size & Scale Criteria

Although the program does not specify explicit size or revenue thresholds, eligible projects must involve a minimum investment of $100,000 in eligible expenses. This requirement ensures that the funding supports substantial projects that significantly contribute to productivity enhancements.

Geographic Eligibility

Applicants must be entities registered and operating in Quebec. This geographic focus ensures that the program's benefits directly support the province's economic development. Foreign companies must also establish a significant presence in Quebec to qualify.

Sector Eligibility

The ESSOR – Component 2 program is broadly inclusive but excludes certain sectors. Ineligible sectors include primary industries like agriculture and forestry (with exceptions for greenhouse agriculture and major projects exceeding $10 million), mining, real estate, and several service-based sectors such as health care, education, and public administration. However, projects involving the acquisition and implementation of digital solutions are open to all industries, provided they include a digital diagnostic component.

Project & Activity Requirements

Eligible projects should aim at increasing production capacity, modernizing existing facilities, or facilitating a technological transition. Projects must begin within six months of approval (extendable to twelve months for large-scale investments or those creating substantial employment). The project realization period should not exceed five years, with a preference for completion within three years.

Ineligible Applicants

Entities within excluded sectors or those not registered in Quebec are ineligible. Additionally, projects that begin before approval or do not meet the minimum investment requirement are not considered.

Special Cases & Exceptions

For seasonal businesses in specific Quebec regions, such as Côte-Nord and Gaspésie, eligibility extends to primary sector activities, including commercial fishing and agriculture. This exception supports the unique economic needs of these areas.

Self-Assessment Checklist

• Is your organization a for-profit or social economy enterprise?

• Are you registered and operating in Quebec?

• Does your project involve at least $100,000 in eligible expenses?

• Are you within an eligible sector, or does your project include a digital component?

Conclusion

Understanding the eligibility criteria for ESSOR – Component 2 is essential for planning your business's expansion and productivity projects in Quebec. If your business meets these requirements, consider applying to take advantage of this strategic funding opportunity. For further details, consult the official program guidelines or contact the program administrators.