How much funding can be received?

Funds up to 20% of admissible expenses.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the ESSOR – Component 2?

ESSOR – Component 2 is funded by Investissement Québec (IQ)

What are ESSOR – Component 2's eligibility criterias?

Eligible companies must be legally constituted for-profit businesses or social economy enterprises as per the Social Economy Act and registered in Quebec. Foreign enterprises must also be registered in Quebec and commit to perform activities there within 12 months of project authorization. Businesses in all sectors are eligible except those specified in the ineligible sectors list.

ESSOR – Component 2

QC, Canada

Investment support for productivity and business expansion

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Loans and Capital investments

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Manufacturing

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Investissement Québec (IQ)

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The ESSOR program, under Component 2, offers support for investment projects promoting productivity and business expansion in Quebec with a maximum funding impact of $10 million per project. Eligible activities include increasing production capacity, modernizing existing enterprises, and supporting technological transitions, with a focus on economic impacts and financial health.

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This grant provides diverse financial aid methods to support business productivity and expansion, offering tailored options to suit various project requirements.

The contribution can be in the form of a repayable loan, interest-free loan, convertible debentures, or a forgivable loan, among other loan types.
Loan guarantees are available up to 70% on the net loss associated with a loan, credit line, or similar financial commitments provided by a lender.
Equity participation is possible, with government ownership not exceeding 50% of the shares post-dilution, with limits on the minimum ($1M) and maximum ($5M) investment per participation.
The grant also offers non-repayable contributions (subsidies) for eligible projects.
Priority is given to the repayable contribution and loan guarantee as forms of assistance.
Seasonal businesses can access an intervention fund, with up to 15% allocated to non-repayable aid.
The aid impact rate must not exceed 25% of eligible expenses.
Total combined government financial assistance must not exceed 50% of the total project cost.
Eligible project financial assistance is capped at $10 million per project.

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The ESSOR grant, Component 2, is designed to support investment projects that aim to increase productivity and foster business expansion in Quebec. It targets projects that involve significant investment and demonstrate potential economic impact.

Projects to increase production capacity by creating a new company, establishing a foreign entity in Quebec, or expanding an existing business in Quebec.
Modernizing existing businesses through the replacement of machinery, equipment, or acquisition of software.
Projects involving technological transitions, including cloud computing, business intelligence, and artificial intelligence.

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$ 900,000

Implementing cloud-based business intelligence tools

$ 1,500,000

Expanding local artisanal cheese production facility

$ 2,000,000

Modernizing an eco-friendly clothing manufacturing plant

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Eligibility for this grant is determined by specific requirements that applicants must meet.

The applicant must be a legally constituted for-profit business or a social economy enterprise as defined by the Quebec Act on Social Economy.
The business must be registered in Quebec and conduct activities in Quebec to receive financial support.
Foreign businesses must commit to registering and conducting activities in Quebec within twelve months following project approval.
Businesses from all sectors are eligible, except those explicitly excluded such as mining, real estate, certain construction projects, public administration, and others outlined in section 4.1.2.
Seasonal activities businesses in specific regions like Côte-Nord, Gaspésie-Îles-de-la-Madeleine, Bas-Saint-Laurent, and certain areas of Capitale-Nationale are eligible, including those in the primary sector.
Applicants must not be listed on the Register of Enterprises Ineligible for Public Contracts (RENA) or be non-compliant with Quebec's French language laws.
Applicants must not have defaulted on obligations related to previously granted financial aid from the Quebec government within the past two years.
Entities such as state-controlled companies or those under creditor protection like bankruptcy or insolvency laws are not eligible.

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Eligible applicants for the program include legally incorporated for-profit businesses and social economy enterprises as defined by Quebec's Law on Social Economy. These organizations must be registered and operate in Quebec to receive financial support under the program. Foreign businesses may also apply if they commit to be registered and operate in Quebec within 12 months following project approval. All sectors are eligible except those listed under the ineligible sectors section. For projects involving digital solutions, all sectors are admissible. Seasonal businesses in specific regions of Quebec are eligible, including for-profit legally constituted businesses, cooperatives, and social economy enterprises operating in the following areas: Côte-Nord, Gaspésie-Îles-de-la-Madeleine, Bas-Saint-Laurent, and selected areas in Capitale-Nationale. These businesses can include the primary sector such as commercial fishing, mariculture, agriculture, and peatlands. Merely meeting eligibility criteria does not guarantee funding or obligation by Investissement Québec or the Ministry to provide financial support.

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This grant excludes certain companies and industries due to their status or main activity. The restrictions aim to ensure that funds are directed towards sectors aligned with economic development and sustainability goals.

Companies operating primarily in the extraction of natural resources such as mining, oil, and gas.
Firms involved in real estate services, leasing, and rental activities.
Companies in construction, except for those focusing on productivity improvements.
Operating in public administration, healthcare, social assistance, educational services, finance, and insurance.
Businesses in entertainment, arts, and recreation sectors, including gambling and violent sports activities.
Involvement in the sexual exploitation industry, including erotic bars and escort services.
Firms registered on the Registry of Non-Admissible Enterprises for public contracts.
Enterprises not compliant with language laws enforced by the Quebec Office of the French Language.
Entities controlled by or majority-owned by government bodies.
Organizations facing insolvency or bankruptcy protections.
Engaged in the production or distribution of weapons and fossil fuels, except for carbon transition activities.
Related to tobacco or non-medical cannabis industries.

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The grant covers capitalizable expenditures directly linked to the execution of the investment project.

Acquisition, construction, development, or expansion of buildings.
Acquisition and implementation of equipment or software.
Expenses related to significant technological transitions (cloud computing, business intelligence, and artificial intelligence).
Working capital expenses essential to the execution of the project when the financial assistance is in the form of a loan guarantee or a repayable financial contribution or a forgivable loan, up to a maximum of 20% of the total eligible expenses.

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The evaluation and selection of projects for this grant are based on specific criteria to ensure alignment with the grant’s objectives.

Viability of the project indicating improved productivity or competitiveness.
Demonstration of the ability to repay any financial assistance received.
Alignment with ministerial and governmental strategies to increase productivity.
Significant economic impact or justified need due to the financial situation of the company.
Potential for increasing the company's asset base significantly, preferably by at least 20%.
Provision of detailed project description, financial structure, and forecast if necessary.

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Here are additional relevant details for this grant:

The program mandates a private fund contribution of at least 20% of the total project cost to ensure that government grants do not entirely finance the project.
There is a defined ceiling for the cumulative government financial aid from Quebec and Canada ministries or entities, which must not exceed 50% of the total project cost.
Grants from other programs of the Ministry, including the Economic Development Fund (EDF), cannot be combined with the financial aid under this grant.
Investissement Québec manages the application process and disbursement of funds, requiring a financial assistance agreement detailing conditions and obligations from both parties.
Interest capitalization is permissible up to five years following the initial loan disbursement.
Management fees of at least 0.5% of the financial aid amount are applicable.
The financial aid repayment period is capped at 10 years, extendable to 20 years for royalty-based loans.