2025 Guide to SME Grant Funding in Canada

In 2025, small and medium-sized businesses in Quebec can take advantage of an expanded range of subsidies and financial support measures. The provincial government, as well as federal and municipal authorities, have put in place various programs to stimulate marketing, improve productivity and innovation, strengthen human resources, encourage sustainable development, and support projects at the municipal level. This article offers a professional and concrete overview of the main financial levers available in 2025 for Quebec SMEs, with for each category the flagship programs, their general eligibility criteria, eligible expenses, maximum amounts offered, and coverage rates.

To develop new markets, increase a company’s visibility and support export efforts, several subsidies in 2025 can help Quebec SMEs:

CanExport SME – Up to $50,000 (covers 50% of costs): Federal program aimed at accompanying businesses in their export efforts. It co-finances various international marketing projects equally. General criteria: aimed at Canadian SMEs wishing to develop a foreign market. Eligible expenses: creation or translation of a website and promotional material, production of marketing videos, expert fees for market studies or export strategies, participation in international trade shows, protection of intellectual property abroad, online advertising campaigns targeting the intended markets, etc. This program is very popular—thousands of applications each year—and about a third of businesses obtain financial assistance, demonstrating its usefulness for breaking into new markets.

SIAM (Soutien Individuel d’Accès aux Marchés) – Up to $100,000 (covers 50% of costs): Subsidy financed by Aliments du Québec for food processing businesses seeking to expand their distribution in Quebec. General criteria: aimed at SMEs in the biofood sector that wish to access new sales channels in the province. Eligible expenses: initiatives to enter a new market segment (for example, breaking into the restaurant sector if the company only sold in grocery stores), integration into new retail chains, expansion of points of sale in Quebec, development of a local marketing strategy, participation in provincial food fairs, etc. The objective is to increase the sales of Quebec food processors by facilitating their access to long distribution networks in the province.

SEB (Soutien aux Exportations Bioalimentaires) – Up to $250,000 (covers 50% of costs): Program jointly funded by MAPAQ (Ministry of Agriculture, Fisheries and Food of Quebec) and the Groupe Export Agroalimentaire. It supports biofood businesses that want to increase the presence of their products in markets outside Quebec. General criteria: aimed at Quebec agri-food businesses ready to export or increase their exports outside the province. Eligible expenses: implementation of marketing and market development activities outside Quebec, hiring a specialist in international market development, participation in trade shows outside Quebec, organization of visits by potential foreign buyers to Quebec, adaptation of packaging or certifications for the intended markets, etc. This subsidy aims to provide concrete support to biofood exporters in all the steps necessary to conquer new markets.

DÉPART – Up to $300,000 (covers 50% of costs): Program managed by Investissement Québec to support the local economy of devitalized municipalities or RCMs. It offers non-repayable contributions to help SMEs diversify and strengthen their activities. General criteria: aimed at businesses located in regions with economic challenges (areas designated as devitalized) that have growth or transformation projects. Eligible expenses: carrying out feasibility studies for modernization or expansion projects, start-up costs for new local businesses, expenses related to expanding an existing business, investment in technologies to improve productivity, development of tourism or cultural facilities to attract more visitors, development of new products or innovative processes to increase market share or target export, etc. By supporting this type of expenditure, the DÉPART program aims to revitalize the local economy and create jobs in regions that particularly need it.

Productivity and innovation are major axes of the 2025-2026 budget. New incentive measures and subsidies have been created or enhanced to encourage technological investments, research and development (R&D), and the adoption of innovative solutions by SMEs:

CRIC (Tax Credit for Research, Innovation, and Marketing) – 30% or 20% refundable rates, expenses up to $1M and more: This is a new fully refundable provincial tax credit that replaces the SR&ED program in Quebec. General criteria: applies to businesses engaged in research and development activities, product or process innovation, and pre-commercialization. All innovative businesses in Quebec can benefit from it, regardless of their size or whether they pay tax that year (since the credit is refundable). Modalities: the CRIC refunds 30% of eligible expenses on the first $1 million of expenses, then 20% of amounts exceeding that first million. Eligible expenses: salaries of staff assigned to R&D or innovation, fees paid to researchers or experts, costs of acquiring equipment necessary for innovative projects, 50% of the amounts of contracts awarded to R&D subcontractors, and other expenses related to marketing innovations. The CRIC thus expands the range of covered expenses and offers substantial financial support, improving the efficiency of government support for technological and innovative businesses.

ESSOR Program – Productivity – Contributions and loans for major projects: ESSOR is a well-known provincial program to support businesses’ investment projects. In 2025, a “Productivity Construction Site” component has been reinforced to stimulate large-scale investments aimed at increasing the productivity of Quebec businesses. General criteria: aimed at major investment projects (often more than $10 million) by businesses wishing to modernize their facilities, adopt new technologies, or significantly increase their production capacity. Modalities: this component can offer loans (including possibly interest-free) as well as non-repayable contributions to complete the financial package of these structuring projects. Furthermore, the ESSOR program also includes an SME component (Component 1) subdivided into three parts:

Eligible expenses (SME component): professional consultant fees (market studies, engineering, etc.), travel and accommodation expenses related to the project, technical analyses and studies justifying the investment (productivity study, digital plan, market evaluation), and expenses for implementing new technologies or innovative equipment. Thanks to these components, even the smallest businesses can receive a financial boost from the planning phase to the execution of modernization projects, while larger projects can be supported through significant loans or contributions from the ESSOR – Productivity Construction Site budget.

SIPEM (Subsidy for Business Innovation and Productivity in Manufacturing) – Up to $500,000 (covers 50% of costs): Specific program for the Quebec manufacturing sector aimed at stimulating the adoption of innovative technologies and improving production processes. General criteria: aimed at Quebec manufacturing businesses wishing to carry out a technological innovation project to increase their efficiency. Modalities: a non-repayable subsidy that can cover up to 50% of the project’s eligible expenses, up to a maximum of $500,000. Note that a specific portion (for example, around $15,000) can be allocated to the development of a technological specification document at the project’s start. Eligible expenses: identification of automation or digitization opportunities (through preliminary studies or specification documents), development or acquisition of innovative solutions in microelectronics or software to optimize production lines, creation of custom software to improve operations management (production flows, inventories, etc.), adaptation of existing technologies with the help of specialized subcontractors, and even efforts to create and market the intellectual property resulting from these new solutions. In sum, SIPEM provides significant support for manufacturers who invest in Industry 4.0 and the modernization of their plants.

Partenar-IA – $350,000 to $1,500,000 (covers 50% of costs): New program introduced to encourage the adoption of artificial intelligence (AI) in Quebec businesses, particularly in sectors where AI is underutilized. General criteria: aimed at businesses wishing to integrate AI solutions into their processes or develop collaborative projects with AI research centers. Modalities: offers a non-repayable contribution matching half the expenses, for projects whose size can range from medium (a few hundred thousand dollars) to very ambitious (over one million). Eligible expenses: professional fees for AI experts or university researchers as partners, travel and accommodation expenses related to collaboration (for example, inviting experts or visiting research centers), purchase or rental of specific IT equipment necessary for the AI project (servers, sensors, robots, etc.), costs related to exploiting intellectual property (patent filings related to AI innovations, legal fees), communication and technology transfer costs (internal training workshops, documentation, dissemination of results). The aim of Partenar-IA is not only to improve the competitiveness of participating businesses through AI, but also to position Quebec as a leader in innovation in this cutting-edge field, through strategic partnerships between industry and research.

CanExport Innovation – Up to $75,000 (covers 75% of costs): Variation of the CanExport program, focused on international R&D partnerships. General criteria: aimed at innovative Canadian businesses that seek to establish research and development collaborations with foreign partners (for example, a joint project with an overseas business or lab). Modalities: federal subsidy covering three-quarters of project expenses, up to a maximum of $75,000. Eligible expenses: hiring international business development experts to identify and forge technology partnerships, marketing expenses to attract partners (development of technical brochures, demonstrators, etc.), participation in scientific networking conferences or events abroad, shipping of samples or technology prototypes for demonstration to potential partners, protection of intellectual property in the targeted markets (international patents, approvals), certification requests required for innovations on an international scale, etc. This highly sought-after program has several application periods per year (typically March, June, September), and funds can run out quickly, prompting businesses to carefully plan their submission. CanExport Innovation thus allows SMEs to open up to global collaboration by sharing costs and risks related to exploring new technological frontiers.

Momentum Fund by Desjardins – Up to $20,000 (covers 25% of costs): Special initiative put in place by Desjardins to support the creation of quality jobs and regional economic development in Quebec. General criteria: aimed at SMEs with a business project that generates local growth (innovation, expansion, etc.), often conditioned on the creation or retention of jobs in the community. Modalities: offers a subsidy of up to $20,000 representing 25% of the project’s eligible expenses (which implies a total project of about $80,000 to maximize aid). Eligible expenses: technological or product innovation projects, initiatives for the digital transformation of the company (for example, implementation of an ERP software, development of an online platform), expenses related to a business ownership transition (entrepreneurial succession planning with retention of jobs in the region), diversification efforts in the company’s supply chain or market, programs to attract and retain talent (innovative HR strategies), projects focused on adopting eco-responsible business practices or improving governance. Although modest in amount, the Fonds C is a fine example of a private partnership to support SMEs; it can often complement other government funding sources.

LTI³ (subsidy in transport and logistics) – Up to $28,500 (covers 70% of costs): Program intended for businesses in the transport and logistics sector to help them integrate digital technologies and optimize their operations. General criteria: aimed at SMEs active in transport (road, maritime, logistics, etc.) that want to improve their productivity through digitization. Modalities: subsidy covering the majority of expenses (70%), up to a maximum of $28,500. Projects are generally divided into tiers, with different travel support depending on the scale. Eligible expenses: consultant or collaborator fees for digital logistics experts (for example, optimizing the supply chain through AI, implementing a transport management system), necessary travel costs for implementation (visits to pilot sites, external training—capped around $2,000 for small projects and $3,000 for larger ones), accommodation expenses during these trips (lodging, meals during missions related to the project). By largely funding these expenses, LTI³ allows transport businesses to more easily adopt innovations such as real-time cargo tracking, route optimization, or administrative automation, thereby strengthening their competitiveness.

The labor shortage and the need to train employees in new skills remain major concerns for SMEs. In 2025, several subsidies specifically support hiring, training, and integrating talent within Quebec businesses:

NovaScience – Up to $105,000 (covers 50% of costs): Program that comes in two components to encourage the hiring of specialized talent in science and technology fields, particularly related to digital transformation. Junior component: maximum subsidy of $30,000 for hiring a young graduate or junior talent in a position related to innovation (data analyst, junior programmer, etc.). Senior component: maximum subsidy of $75,000 for hiring an expert or senior talent (for example, a software architect, an experienced researcher, a digital project manager). In both cases, the assistance covers half the salary of the new employee for a given period. General criteria: the business must create a new position or fill a key vacant position related to emerging technologies or sciences; the candidate must meet the experience criteria of the chosen component (recently graduated or, on the contrary, established expert). Objective: NovaScience aims not only to financially help the business recruit, but also to stimulate Quebec’s technological talent pool by encouraging giving juniors their first chance and attracting seasoned experts in innovative sectors.

Programme Visées – Up to $8,000 per employee (covers 50% of costs): Subsidy dedicated to workforce skills development through continuing education. General criteria: aimed at businesses that want to train their employees in high-growth or strategic sectors (digital, cybersecurity, innovative manufacturing, clean technologies, etc.). Modalities: up to $8,000 per trained employee, covering half the salary during the training period as well as the training costs themselves. Eligible expenses: enrollment in professional or technical training, participation in specialized courses (e.g. cybersecurity, data science, maintenance of new high-tech equipment), training in advanced agricultural technologies, workshops on advanced manufacturing or 3D printing, training programs on clean technologies and sustainable management, certification in biopharmaceutical production, etc. In practice, if an SME enrolls several employees in training, it can receive $8,000 for each, helping absorb the wage cost during their absence in training and pay for course fees. The Programme Visées helps raise the skill level of Quebec employees and improve the competitiveness of businesses through a better-trained workforce.

Canada Summer Jobs – About $5,000 per youth: A well-established federal program that subsidizes the hiring of youth aged 15 to 30 during the summer season. General criteria: open to employers (including SMEs, NPOs, municipalities) who offer quality summer jobs to students or young people starting their careers. Modalities: the exact amount per job varies, but is around $5,000 for a summer position (usually calculated based on a certain number of hours and a specific hourly rate). There is no strict limit to the number of young people a business can hire through the program, as long as the application is approved. Eligible expenses: essentially the wages paid to young summer employees during the covered period. Concrete example: an SME could hire two students from June to August and receive about $10,000 (2 × $5,000) to cover part of these salaries, thereby reducing its seasonal labor costs. Canada Summer Jobs thus helps businesses meet their seasonal needs while providing work experience for young people.

Welcome an intern (FCCQ) – Up to $7,000 per intern: Program implemented by the Fédération des chambres de commerce du Québec with the support of the Canadian government, to encourage businesses to host interns and thus contribute to the practical training of future workers. General criteria: aimed at businesses of all sizes in Quebec that can offer a relevant internship to a student or recent graduate, in any sector facing labor shortages. Modalities: a subsidy of about $7,000 per hosted intern, generally for a significant internship duration (a few months). Eligible expenses: mainly the remuneration of the intern. Expected impact: by reducing the cost of hosting an intern, the program encourages SMEs to train the next generation and potentially recruit these interns afterwards. It’s a win-win investment: the student gains experience, and the company benefits from additional talent at a lower cost over the duration of the internship.

Mitacs – Up to $15,000 per research internship project: Mitacs is a national organization that supports research internships in businesses for university students (master’s, doctorate) or postdoctoral fellows. General criteria: aimed at businesses that have a research or innovation project requiring university expertise. In 2025, Mitacs continues to offer programs where the business pays part of the cost and Mitacs provides an equivalent subsidy. Modalities: for example, for a 4- to 6-month internship, a typical business contribution of $7,500 is matched by $7,500 from Mitacs, allowing a stipend of about $15,000 to be paid to an intern. Eligible expenses: the bursary paid to the intern (often a graduate student) who works on the defined project. Concrete example: a manufacturing SME could host an engineering student to optimize a process; the business would only pay half of the $15,000 bursary, with the other half covered by Mitacs. Thus, Mitacs stimulates collaborative research and allows SMEs to access applied research at lower cost, while training students in a real-world context.

Sustainable development and eco-responsible practices are increasingly encouraged through dedicated subsidies, allowing SMEs to align economic growth with respect for the environment. In 2025, several programs support these green initiatives:

Fonds Écoleader – Up to $80,000 (covers 75% of costs): Program led by the Ministry of Economy, Innovation, and Energy, managed by the Fonds d’action québécois pour le développement durable (FAQDD). It aims to financially assist businesses wishing to adopt eco-responsible business practices or clean technologies. General criteria: open to all businesses and organizations in Quebec ready to embark on a green transition, regardless of the sector of activity, throughout the territory. Modalities: the subsidy has two components—up to $30,000 for projects related to eco-responsible business practices (Component 1), and up to $50,000 for projects implementing clean technologies (Component 2). Each component can cover up to 75% of eligible expenses, which is a very generous coverage rate. Eligible expenses: consultant fees for carrying out an environmental diagnosis of the business, studies and analyses to identify improvements (e.g. life cycle analysis of products), development of concrete action plans in sustainable development, assistance in obtaining green certifications (for example, B Corp certification or other environmental standards), implementation costs for new practices (setting up a waste management system, training staff in eco-friendly measures), acquisition or implementation of clean technologies (emission reduction equipment, energy recovery systems, etc.). The Fonds Écoleader is therefore a major lever for an SME to finance the majority of a green project, whether it is for eco-responsibility consulting or investing in more environmentally friendly equipment.

Écoemballage+ – Up to $350,000 (covers 75% of costs): Initiative funded by MAPAQ and administered by FAQDD, specifically intended for businesses in the food processing sector to help them eco-design their packaging. General criteria: aimed at agri-food businesses (of all sizes) wanting to make their packaging and containers more environmentally friendly (e.g. recyclable, compostable, with less plastic). Modalities: two components—Component 1 offers up to $50,000 to support a single business in improving its packaging, and Component 2 can go up to $300,000 for innovative projects with a collective scope (involving multiple partners or a wider impact on the industry). In both cases, the subsidy can cover 75% of eligible expenses. Eligible expenses: studies and analyses of current packaging (analysis of their environmental footprint, testing of new materials), concrete recommendations for improving the eco-design of packaging, development of an action plan and implementation (for example, a plan to move to 100% recyclable packaging within 2 years), technical assistance costs to implement these changes (hiring experts in green packaging, prototyping new solutions), additional support after implementation to measure results and adjust if necessary. Concrete example: a ready-meal business could, thanks to Écoemballage+, finance the redesign of all its containers by opting for recycled cardboard and compostable plastic film, paying only 25% of the costs related to R&D, tests, and the transition, while the program covers the rest.

Roulez vert – Up to $4,000 per vehicle: This well-known program to encourage the adoption of electric vehicles has been renewed and enhanced in the 2025-2026 provincial budget. General criteria: aimed at individuals and businesses that buy or lease a new electric, plug-in hybrid, or hydrogen (fuel cell) vehicle that qualifies. For businesses, this helps green their vehicle fleet. Modalities: a purchase rebate that can range from $500 (for certain lightweight electric vehicles) to $4,000 for eligible electric cars meeting the program’s criteria. The rebate is generally applied directly at purchase or lease as a price reduction. Eligible expenses: acquisition cost (or long-term lease) of a fully electric vehicle (e.g. a car, an electric van), a plug-in hybrid vehicle, a hydrogen vehicle, or even an electric motorcycle. Concrete example: a delivery SME buying a new electric van could receive $4,000 from Roulez vert, thus reducing the purchase price accordingly, making the investment in a clean vehicle more accessible. This program aims to accelerate the transition to sustainable transportation by reducing the purchase cost gap.

In addition to provincial and federal programs, SMEs can often benefit from subsidies offered by municipalities, RCMs (Regional County Municipalities), or regional authorities. These local support measures, sometimes in the form of local funds or competitions, are adapted to community realities and aim to stimulate the local economy:

FLI – Local Investment Funds – Up to $200,000 (generally covers 50% of costs): FLIs are available in most RCMs in Quebec and provide tailored financing (a subsidy or loan under favorable conditions) for local entrepreneurial projects. General criteria: aimed at entrepreneurs and SMEs whose project directly benefits the local economy (business start-up, job creation in the region, etc.). The exact conditions (amount, proportion in subsidy vs. loan) vary from one region to another. Eligible expenses: according to the agreement with the RCM, an FLI can support expenses related to starting up a business (purchase of basic equipment, initial working capital), productivity improvements (investment in a new machine or software), digital transformation (implementation of an online sales site, CRM, etc.), the introduction of sustainable practices (such as a waste management or energy efficiency project within the company), growth and expansion projects (plant expansion, opening a second point of sale), or entrepreneurial succession (transfer of a company to a new local owner). Concrete example: a microbrewery that wants to expand in its RCM could obtain, through the local FLI, $100,000 as an interest-free loan and $50,000 in direct subsidies, together covering half of its $300,000 expansion project. FLIs therefore play a very important local financial leverage role in bringing projects to fruition on the ground.

Défi Québec (City of Quebec) – Up to $50,000 (covers 50% of costs): The City of Quebec offers this program to encourage innovative projects on its territory. General criteria: intended for businesses (often young or startup companies) that have an innovative project in marketing, environment, or productivity improvement. A selection process (competition or call for projects) is usually in place, given the limited budget. Modalities: subsidy of up to $50,000 representing a maximum of half of the project’s budget. Eligible expenses: depend on the project’s nature, but may include marketing and commercialization fees for a new product, research and development or prototyping expenses for an innovative product, equipment costs improving productivity or environmental performance, etc. This challenge highlights the entrepreneurial vitality of the capital by financially supporting promising projects rooted in Quebec City.

DEL – Economic Development of the Longueuil agglomeration – Up to $20,000 (covers 50% of costs): This program is aimed at businesses in the Longueuil agglomeration (south shore of Montreal). General criteria: the SME must be located in the territory (Longueuil and surrounding areas) and present a structuring development project. Modalities: subsidy up to $20,000 covering half of certain expenses. Eligible expenses: the range is quite broad, including, for example, marketing costs (advertising campaigns, creation of a transactional website), human resources management costs (implementation of an HR software, development of a training plan), professional fees (consultant for an export diagnosis or a strategic plan), strategic planning (development of a business plan for a new subsidiary), and improving operational efficiency (optimizing a production process with an expert’s help). DEL aims to increase the competitiveness of local businesses by sharing the cost of their development projects.

FRR – Fonds régions et ruralité – Up to $3,000,000 (generally covers 50% of costs): This is a massive budget envelope ($1.3 billion) managed by the regions and RCMs, which replaced the former FARR fund. General criteria: the FRR includes 4 components covering different types of regional, rural, or local development projects. Some parts target economic initiatives (support for businesses, for innovative projects in the region), others target community or local infrastructure projects. Modalities: depending on the component, a non-repayable subsidy may be granted for up to 50% of the project’s eligible expenses, with ceilings that can reach several million for major structuring projects for a region. Eligible expenses: very varied—they can range from funding a feasibility study for setting up an industrial incubator in the region, to construction or renovation costs of local economic development infrastructure (an innovation center, a regional public market), to supporting individual businesses with a project aligned with regional priorities (e.g. a food processing plant in a rural area that needs a boost to equip itself and create local jobs). The FRR, given its scope, is a centerpiece of the government’s local economic development strategy, and SMEs should monitor calls for projects in their region to benefit.

Other municipal or regional subsidies: In addition to the above programs, many cities and RCMs have their own subsidy programs or competitions to encourage entrepreneurship. For example, Montreal periodically has competitions for innovative businesses or the adoption of clean technologies in an urban setting; some RCMs offer support grants to agricultural succession or the start-up of small local businesses. It is therefore strongly recommended that SMEs inquire with their municipality, their RCM, or their local development organization (CLD, local Chambers of Commerce, etc.) to identify the assistance available in their area. These local subsidies are often less well-known, but they can fill a specific need or serve as a springboard before seeking larger funds.

For managers of Quebec SMEs, 2025 offers an unprecedented range of subsidy programs and tax credits to support their growth projects. Whether it is to conquer new markets, modernize a plant, innovate with artificial intelligence, train employees, or adopt sustainable practices, there are financial aids adapted to every challenge. In general, most of these subsidies cover around 50% of eligible expenses (sometimes more, up to 70-75% for certain components), meaning that by wisely combining programs, a business can finance a substantial portion of its investments.

Access to these financial levers nevertheless requires proper planning and preparation: you need to check the eligibility criteria (company size, sector of activity, location, etc.), comply with submission dates or calls for projects, and build solid applications detailing the planned expenses and expected benefits. Do not hesitate to consult the available resources (guides, webinars, advisors) to guide you in this aid ecosystem. By taking full advantage of the subsidies available in 2025, Quebec SMEs can not only reduce the cost of their projects, but also accelerate their development and sustainably strengthen their competitiveness in an evolving economic context. With good information and a bit of strategy, these financial levers will become true allies of your entrepreneurial success.