How much funding can be received?

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.

grant_single_labels|terms_and_conditions

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.

grant_single_labels|projects

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.

grant_single_labels|admissibility

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.

grant_eligibility_criteria|who_can_apply

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.

grant_eligibility_criteria|who_cannot_apply

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.

grant_eligibility_criteria|eligible_expenses

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.

grant_eligibility_criteria|zone

This grant is available to certain companies operating in designated regions characterized by seasonal activities within the province of Quebec, Canada. The objective is to support business productivity and expansion within these specific territories.

Côte-Nord.
Gaspésie-Îles-de-la-Madeleine.
Bas-Saint-Laurent.
Capitale-Nationale (MRC de Charlevoix, Charlevoix-Est, and Portneuf).

grant_single_labels|criteria

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.

grant_single_labels|register

Here are the steps to submit an application for this grant:

Step 1: Determine Eligibility
Verify your company is registered in Quebec and engages in activities there.
Ensure none of the ineligible conditions apply to your organization.
Check that your project meets the minimum financial and sector requirements.
Step 2: Project Preparation
Design a project that involves at least $100,000 in eligible expenses.
Prepare detailed project descriptions and a financial plan demonstrating productivity potential.
Ensure an increase in fixed assets by 20% or significant economic benefits derived from the project.
Step 3: Gather Necessary Documentation
Compile detailed project descriptions, financial statements for the past four years, or financial forecasts.
Gather offers of service or partnership agreements, if applicable.
For applicable companies, provide a copy of francization certificate or relevant documents from OQLF.
Submit a declaration of compliance with the Equal Employment Access Program, if applicable.
Step 4: Submit Application
Complete the online application form on the Investissement Québec platform.
Upload all required documents as per the guideline.
Step 5: Await Feedback
Investissement Québec will assess applications continuously based on program criteria.
Potential applicants may be contacted for further information or clarification if needed.

grant_single_labels|otherInfo

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.

Apply to this program

Enhancing Business Productivity and Expansion

ESSOR's Component 2 grant focuses on supporting businesses in Quebec looking to increase productivity and expand their operations. This financial aid is specifically available to promote technological advancements and modernize facilities for companies across various sectors.

In-Depth Information on the ESSOR Component 2 Grant

The ESSOR Component 2 grant, administered by Investissement Québec in conjunction with the Ministry, is an initiative aimed at fostering business productivity and expansion within Quebec. Targeted at projects that require significant capital investment, this grant is designed to help companies modernize and expand their operations, with a minimum threshold of $100,000 in capitalizable expenses. This includes technological upgrades and the physical expansion of production capabilities. The program acknowledges the imperative to enhance productivity as a means to drive economic growth and supports projects that offer substantial economic benefits, such as increased capacity leading to uplifted employment and productivity markers.

This grant is accessible to a wide range of businesses, including legally constituted profitable companies and social economy enterprises located within Quebec. Specific strategic industries, particularly those looking to innovate and integrate digital solutions, stand to gain significantly from this funding opportunity. Notably, foreign companies intending to establish operations in Quebec are also eligible, provided they commit to beginning their activity within a specified timeframe post-approval.

The grant covers a broad spectrum of expenses directly linked to the investment project. These include the acquisition, construction, or expansion of facilities, and the purchase and implementation of necessary equipment or software to boost productivity. Additionally, expenses facilitating significant technological transitions, such as cloud computing or artificial intelligence implementation, are considered eligible under this program. The funding mechanism includes both refundable advances and non-repayable contributions, with the refundable contributions being the preferred type of intervention to ensure the sustainability and continuity of financial aid.

Applicants must ensure that their projects lead to at least a 20% increase in fixed assets for established enterprises unless economic spillovers justify a lower percentage. Moreover, the aid cannot surpass 25% of the eligible expenses, ensuring a strategic allocation of resources. Companies are also required to showcase a solid financial structure, effective management, professional technical staff, and robust production and marketing frameworks, all pointing towards the project's viability and its eventual success in improving competitive edges.

The selection process for the ESSOR Component 2 grant involves a rigorous evaluation of the project's prospects for enhancing productivity, profitability, and wage growth. Projects need to demonstrate robust compliance with Quebec’s linguistic regulations, reflecting the grant's commitment to preserving the cultural integrity of the province. Successful applications will potentially receive financial support through various forms, including loan guarantees and equity stakes, with specific conditions applied to determine eligibility and the extent of financial backing.

This program epitomizes a comprehensive strategy to foster economic development by supporting strategic investments that drive innovation, expand productive capacity, and enhance the competitiveness of businesses operating within Quebec. Companies eyeing growth and modernization as part of their strategic objectives are highly encouraged to leverage this grant for transformative investments conducive to long-term economic stability and success.