How much funding can be received?

Funds up to 100% of admissible expenses, capped at $800000 per project.

What is the deadline to apply?

The deadline to apply is not specified.

PAFODE — Component 2 : Operating support for organizations supporting strategic sectors and regional economic development

Q: What are PAFODE — Component 2 : Operating support for organizations supporting strategic sectors and regional economic development's eligibility criterias?

Not admissible to for-profit enterprises The applicant must not be a state-owned company or controlled by a government The applicant must have complied with its obligations related to previous financial assistance in Quebec

Last Update: June 27, 2025

QC, Canada

Supports operating costs for regional sectoral economic development organizations

PAFODE — Component 2 : Operating support for organizations supporting strategic sectors and regional economic development at a glance

Eligible Funding

Max. $800,000
Up to 100% of project cost

Timeline

Continuous Intakes

Financing Type

Grant and Funding

Eligible Industries

Manufacturing
Professional, scientific and technical services
Educational services
Other services (except public administration)
Public administration

Grant Providers

Gouvernement du Québec

Status

Open

Overview of the PAFODE — Component 2 : Operating support for organizations supporting strategic sectors and regional economic development program

The Economic Development Organization Operating Support Program (PAFODE) — Component 2 provides non-repayable funding of up to $800,000 per year to eligible organizations supporting strategic sectors and regional economic development in Quebec. The program aims to cover operating costs for activities such as strategic coordination, regional business support, and knowledge transfer among industrial clusters and innovation zones.

Financing terms and conditions

Non-repayable contribution covering up to 100% of eligible expenses for centers of excellence, regional clusters, and zones of innovation.
Maximum funding per year: $100,000 for clusters (with up to $30,000 in additional funding), $360,000 for centers of excellence, interregional clusters, industrial clusters, and innovation centers, and $800,000 for zones of innovation.
Maximum of 80% coverage of eligible expenses for industrial clusters, centers, and zones of innovation.
Eligible expenses incurred must not exceed a continuous period of 36 months.

Eligible projects & activities

Coordination and implementation of strategic plans for sectors of excellence, industry clusters, and innovation zones.
Regional business support services for companies in strategic sectors.
Facilitation of partnerships, alliances, and networking between businesses, economic development organizations, research centres, and educational institutions.
Knowledge transfer and dissemination of strategic information to businesses.

Eligibility criteria of the PAFODE — Component 2 : Operating support for organizations supporting strategic sectors and regional economic development program

The applicant must be a non-profit organization, a CEGEP, a collegial technology transfer center, or a university in Quebec.
Cities, municipalities, regional county municipalities (MRCs), and similar organizations are eligible.
The organization’s activities must support strategic sectors or regional economic development.
The applicant must not be a for-profit business with an establishment in Quebec.
The applicant must have fulfilled past financial obligations to the Quebec government or Investissement Québec for at least two years.

Who is eligible?

Non-profit organizations
Cégeps
College technology transfer centers
Quebec universities
Cities, municipalities, and regional county municipalities (MRCs)
Organizations with similar activities and non-profits incorporated under the Cities and Towns Act

Who is not eligible

State-owned enterprises or companies controlled directly or indirectly by a government (municipal, provincial, or federal), a municipal entity, or a business majority-owned by a state-owned enterprise.
For-profit companies with establishments in Quebec.
Organizations in a situation of bankruptcy or insolvency.

Eligible expenses

Administrative costs.
Salaries and remuneration.
Operating expenses.

Eligible geographic areas

Quebec

Eligibility criteria of the PAFODE — Component 2 : Operating support for organizations supporting strategic sectors and regional economic development program

Coherence between the organization's mission, the program objectives, and government priorities.
Track record of the organization in achieving set targets.
Quality of the action plan and performance indicators, including the alignment between proposed activities, available resources, and target outcomes.
Capacity of the organization to fulfill its mandate successfully, particularly regarding financial and human resources.
Relevance of the organization's contribution to the needs of Quebec's industry and its businesses.
Quality of the supporting documentation provided.
Adoption and implementation of eco-responsible practices (such as recycling or a sustainable development action plan).

How to apply to the PAFODE — Component 2 : Operating support for organizations supporting strategic sectors and regional economic development program

Download and prepare the form

Download the financial assistance application form (PDF)
Save the form to your computer before opening it
Do not fill out the form in your web browser
Use Adobe Reader version 10 or above
Do not modify the PDF document

Complete form and assemble documents

Complete the application form for financial assistance
Gather supporting documents: financial statements, detailed projected budget, strategic plan and annual action plan, latest annual activity report, service offers and partnerships, equality in employment declaration, francization certificate, and any other required documents (e.g., sustainable development plan)

Review and finalize application

Ensure all information on the form and supporting documents is accurate and complete
Have the application form signed
Verify that all required documents are attached

Submit the application by email

Email the completed and signed application form along with all required documents
Use the subject line: "Soutien au fonctionnement des organismes en appui aux secteurs stratégiques et au développement économique des régions"
Send before March 31, 2026, to PAPDE_PAFODE@economie.gouv.qc.ca

Wait for application review and results

Wait for the analysis of your application based on criteria such as alignment with program objectives, performance history, quality of action plan and indicators, and relevance to Quebec’s industry needs
Await result notification

Additional information

Applicants must submit supporting documents such as financial statements, strategic planning documents, and any relevant certifications with their application.
All documentation must be submitted electronically, ensuring the subject line specifies "Soutien au fonctionnement des organismes en appui aux secteurs stratégiques et au développement économique des régions."
Forms should be downloaded and filled with Adobe Reader (version 10 or above) and not completed directly in a web browser.
The program was last updated on March 26, 2024.