PME MTL – Subsidies to support social economy initiatives

The Fonds de développement de l’économie sociale (FDÉS) offers subsidies ranging from $5,000 to $50,000 to support social economy enterprises and non-profit organizations headquartered in Montreal. Eligible projects must demonstrate a formal entrepreneurial approach, self-generated revenue, job creation, and a commitment to invest 20% of the total project cost.

The Fonds de développement de l’économie sociale (FDÉS) is an indispensable financial resource for social economy enterprises and non-profit organizations (NPOs) in Montreal looking to develop, expand, or innovate within their sectors. This guide aims to provide a detailed overview of the FDÉS grant, exploring its objectives, eligibility criteria, financial assistance specifics, and application process. By the end of this guide, you will be well-equipped to navigate the grant application process and understand how to strategically position your social economy project for funding.

The FDÉS grant focuses on promoting social economy initiatives from their planning stages through to their growth phases. The fund is also aimed at fostering innovation by supporting projects that explore new sectors, adopt novel approaches, or develop new expertise. The goal is to bolster social economy enterprises that contribute positively to the community while ensuring their financial sustainability.

To be considered for a subsidy from the FDÉS, your organization must meet specific eligibility requirements: - **Organizational Structure:** You must be a social economy enterprise or an NPO with a social economy project. - **Location:** Your organization must be headquartered in Montreal. - **Entrepreneurial Approach:** A formal entrepreneurial approach is required, emphasizing the importance of structured business planning and operational strategies. - **Self-Generated Revenue:** Your organization should generate at least 20% of its annual revenue from the sale of goods or services. This criterion ensures that the enterprise has a sustainable business model that does not rely solely on external funding. - **Job Creation or Maintenance:** Demonstrating your ability to create or maintain jobs is crucial. This aligns with the fund's objective to contribute to local economic development and community well-being. - **Financial Commitment:** Your organization must invest at least 20% of the total project cost. This requirement ensures that the organization has a vested interest in the project's success.

The FDÉS provides financial assistance in the form of subsidies ranging from $5,000 to $50,000, which can be used to cover a variety of expenses, including: - **Acquisition of Technology, Software, and Patents:** Investments in technology and intellectual property that can enhance your operational capacity or project innovation. - **Working Capital Fund:** Financial resources to support day-to-day operational expenses and ensure smooth project execution. - **Professional Fees:** Costs associated with hiring consultants, legal advisors, and other professional services essential for project development and execution. - **Capital Expenses:** Expenditures on land, building, equipment, and incorporation expenses, which are fundamental for establishing or expanding your social economy enterprise.

To apply for the FDÉS grant, organizations must follow a structured application process designed to assess the viability and impact of the proposed projects: 1. **Preparation:** Before submitting an application, gather all necessary documentation, including your business plan, financial statements, and proof of self-generated revenue. Ensure that you clearly outline how your project aligns with the fund's objectives. 2. **Application Submission:** Submit your application to the relevant hub’s joint investment committee (CIC). The committee will review your application to assess the entrepreneur’s qualifications and the proposal's feasibility. 3. **Assessment:** The CIC evaluates applications based on the fund’s objectives and requirements, considering factors such as innovation, community impact, and financial sustainability. 4. **Approval:** If your application is approved, you will receive the subsidy, which can be used according to the eligible expenses outlined above.

To increase your chances of securing funding, consider the following strategies: - **Clear Project Plan:** Develop a detailed and coherent project plan that outlines your objectives, strategies, and expected outcomes. Highlight how your project will contribute to the social economy and community development. - **Financial Viability:** Demonstrate your organization’s financial health and sustainability. Provide evidence of your self-generated revenue and articulate how the subsidy will enhance your project’s financial model. - **Community Impact:** Emphasize the social and economic benefits of your project for the local community. Provide data and case studies, if available, to support your claims. - **Innovation:** Showcase any innovative aspects of your project, whether it involves new technology, unique business models, or pioneering social solutions. Highlight how these innovations will address existing challenges or create new opportunities.

Securing a grant from the Fonds de développement de l’économie sociale (FDÉS) can be a pivotal step for social economy enterprises and NPOs in Montreal. By understanding the fund's objectives, meeting the eligibility criteria, and presenting a compelling project proposal, your organization can access critical financial resources to drive growth, innovation, and community impact. Being well-prepared and strategic in your application process is key. Ensure that you clearly articulate your project’s value proposition, financial viability, and potential for social impact. With meticulous planning and a strong application, the FDÉS grant can provide the support needed to turn your social economy project into a thriving, community-benefiting success.