SODEC — Support for innovative initiatives

This grant provides funding under structured modalities to ensure effective project execution and proper resource allocation. The financial support is conditional upon specific funding limits and compliance with reporting requirements.

• The grant is awarded as a subsidy covering up to 50% of the eligible project expenses, with a maximum of $150,000 per project.
• For collaborative projects, the funding can reach up to $500,000, also covering up to 50% of eligible costs.
• The applicant must contribute at least 25% of the total project budget, with a minimum of 10% being a financial investment.
• Government funding support, including provincial and federal tax credits, cannot exceed 75% of the total project budget.
• An initial disbursement of 70% is made upon project approval, with the remaining 30% released after project completion and submission of a final report.
• The disbursements are subject to fund availability and necessary legislative approvals.

Eligibility for this grant is determined by specific requirements related to the applicant's profile and proposed activities.

• The company must be legally constituted, either as a for-profit or a non-profit organization, and operate primarily in the SODEC's sectors of activity.
• The company must have its headquarters and main establishment in Quebec and show that the effective control of the company is majority-owned by individuals whose tax residence is in Quebec.
• Sole proprietorships are not eligible, except in the field of crafts.

Who is eligible?

This grant applies to legally constituted enterprises primarily operating within the cultural sectors managed by SODEC, with their head office and main establishment in Quebec and effectively controlled by Quebec residents.

• Enterprises, whether for-profit or non-profit, that are primarily involved in the sectors of activity overseen by SODEC.
• Businesses with their head office and main establishment located in Quebec, demonstrating effective control by individuals having their fiscal residence in Quebec.
• Excludes individual businesses except those in the field of crafts.
• Businesses engaging in collaborative innovation projects may meet additional specific admissibility requirements as outlined in Annex 1.
• Projects must demonstrate significant advancement in the production, dissemination, promotion, or commercialization of Quebec cultural content or in business intelligence or operational business models.

Who is not eligible

This grant excludes certain types of companies based on their status or main activity. The eligibility restrictions ensure that support is directed to strategic and innovative sectors within Quebec's cultural ecosystem.

• Individual businesses, except those in the field of crafts.
• Companies without their main establishment in Quebec.
• Businesses not majority-controlled by Quebec residents for tax purposes.

Eligible expenses

The grant covers specific expenses directly related to the implementation and success of the project.

• Fees for specialized services.
• Production and implementation expenses.
• Direct labor costs allocated to the project.
• Material and equipment expenses specific to the project.
• Costs related to the procurement of specialized, relevant, and necessary information for the project.
• Prototyping expenses.
• Any other pertinent and necessary expenses for the project realization.

Eligible geographic areas

This grant is available to companies primarily situated in Quebec, aiming to support its cultural sector. The eligible geographical area ensures projects contribute positively to Quebec's economic and technological landscape.

• Businesses with their headquarters and main establishment in Quebec, Canada.

The evaluation and selection of projects for this grant are based on specific criteria to ensure alignment with the grant’s objectives of fostering innovation and business capacity in Quebec's cultural sector.

• The innovative nature of the project, including the significant advantage of the product, process, or service in terms of business development, commercial potential, targeted markets, or sector.
• The degree of ownership of copyrights and intellectual property by the applicant company.
• The relevance of the project in relation to the company's business model or the business model of a group in a collaborative project.
• The capability of the applicant company to successfully implement and sustain the project, considering its history, achievements, financial capacity, and management experience.
• The quality of partners involved in the project.
• The quality and realism of the project implementation plan and the service offer from consultants.
• The level of risk associated with the project.
• The budget, funding structure, and the support from partners.
• The benefits for the company, consortium, or sector, and the potential for socioeconomic impact.

Here are additional relevant details for this grant:

• The program emphasizes the importance of respecting ethical codes, highlighting that projects should not contravene governmental policies related to issues like violence, sexism, or discrimination.
• Beneficiaries must be prepared to submit documentation and information for SODEC's periodic evaluations and studies, as required for five years following financial aid receipt, though the data will be kept confidential and aggregated before publishing.
• SODEC encourages sustainable development practices and green business models among its clientele.
• The program allows cumulative funding from other public sources as long as it does not exceed 75% of the total project budget, including provincial and federal tax credits, mandating at least 25% contribution from the applicant, with a minimum of 10% being a financial investment.
• The program structure includes two payment installments: 70% upon approval and 30% after final reporting and acceptance of outcomes, although changes in payment terms might occur depending on project complexity.
• In case of collaborative projects involving foreign companies, economic and technological benefits must substantially favor Quebec, and foreign companies are ineligible to receive funds directly from the program.