4 Quebec Small Business Funding Sources Available Now

Quebec is one of the most populated provinces in Canada and bustles with many organizations, from large corporations to small startups. To help small businesses experience success, the Quebec government offers numerous funding sources to fund growth initiatives and similar efforts. While eligibility criteria for Quebec business grants are different for each program, small businesses qualify for most funding opportunities.

Quebec Economic Development Program

Quebec Economic Development Program (QEDP) is one of the three programs facilitating the funding offered by Canada Economic Development for Quebec Regions (CED). Its goal is to help communities take advantage of high-potential diversification and economic development opportunities. Besides augmenting the financial growth of local economies, funding from this program also goes towards:

• Increasing the number of international organizations in the province
• Increasing tourist spending
• Boosting investments and economic outcomes by acquiring community financial facilities

Many organizations qualify for funding through this program, including local businesses, non-profit organizations (NPOs), Indigenous groups, and co-ops. Eligible costs are any expenses directly tied to the project and critical to its implementation. CED will authorize these expenditures and may impose restrictions in some circumstances.

How Does the Funding Work?

Small and medium-sized enterprises (SMEs) who receive financial assistance from this fund most often get up to 50% of their approved costs. While this funding is repayable starting two years after the project ends, it does not accrue interest. NPOs obtain non-repayable funding for up to 90% of authorized expenses. If the NPO is conducting a capital project, the maximum funding amount is 50%.

Business Scale-up and Productivity Fund

Regional Economic Growth through Innovation (REGI) is one of the other programs comprising CED. Business Scale-up and Productivity is one of the funding streams of the REGI and strives to cultivate business growth and innovation. Various businesses qualify for financial assistance, including SMEs and NPOs.

While the fund is particularly concerned with manufacturing, life sciences, food processing, communications and multimedia, businesses in other industries may qualify, as well. Similar to funding from QEPD, authorized expenses are those with a direct correlation to the project and are vital for implementation. Additionally, these costs must be acceptable to CED. Some qualifying expenditures include the commercialization of a product and the acquisition of new infrastructure.

How Does the Funding Work?

Funding operates identically to that of QEDP. Typically, SMEs receive up to 50% of authorized expenses in funding. This financial assistance is repayable but does not feature interests. SMEs start repaying the amount two years after the project concludes. NPOs usually get up to 90% of their approved costs in non-repayable funding. This amount drops to 50% for capital initiatives.

Jobs and Growth Fund – Quebec

Another aspect of REGI is the Jobs and Growth Fund. As the name suggests, financial assistance empowers organizations in Quebec to create new jobs and foster long-term financial growth for local communities. It was launched as a recovery effort to the damaging effects the COVID-19 pandemic had on the job market and overall economy.

Organizations eligible to apply for funding include for-profit businesses, non-profits, community economic development partners, and Indigenous-led enterprises or groups. The following are general categories of activities that qualify for the Jobs and Growth Fund:

• Maintaining the competitive nature of SMEs by preparing them for the future through digital adoption
• Enhancing capacity in industries essential to the growth and recovery of Canada
• Promoting a more inclusive job market and recovery by supporting underrepresented populations
• Encouraging the shift to a more environmentally-sound economy

How Does the Funding Work?

The trend in funding remains consistent between this program and the two aforementioned opportunities. Qualifying companies can earn up to 50% of eligible expenses as interest-free, repayable funding, while qualifying non-profit organizations could get up to 90% of eligible costs in non-repayable financial assistance. This program goes even further to extend a maximum of 100% in qualified expenditures of non-repayable funding to eligible Indigenous individuals and groups.

Financial Support for Aspiring Farmers

One of the most unique Quebec government grants is Financial Support for Aspiring Farmers. The program’s mission is to guide young farmers as they establish themselves at an existing site or initiate a new enterprise. Individuals meeting the following conditions are eligible for this funding program:

• Are between 18 and 40 years old
• Reside in Quebec
• Hold 20% or more of the company’s shares
• Have a minimum of one year’s experience in the agriculture sector and some accepted training
• Showcase a launch initiative with the possibility of reaping profits

How Does the Funding Work?

The program offers separate grants to part-time and full-time farming operations. Both opportunities help young producers invest in equipment, training, land improvement, and similar expenses, but funding amounts differ. The level of training a farmer has also determines their funding amount. Consider how training impacts funding from Financial Support for Aspiring Farmers:

• Training level 1: $50,000 (full-time), $25,000 (part-time)
• Training level 2: $30,000 (full-time), $15,000 (part-time)
• Training level 3: $20,000 (full-time), $10,000 (part-time)

Finance Quebec Small Business Grants with Easly

The multiple funding opportunities in Quebec make it easier for enterprises to fund innovative projects and growth initiatives. Another way Quebec businesses can access capital is by advancing their SR&ED tax incentive refunds.

If your business needs access to non-dilutive capital, consider partnering with Easly. We work with organizations that receive financial support from the Government, such as Scientific Research and Experimental Development (SR&ED) tax incentives. By aligning with government mandates, we strive to accelerate funding timelines and get money into the bank accounts of eligible Canadian businesses sooner. Our customers access Easly Advances as on-demand and non-dilutive funding through our Capital-as-a-Service platform.

Get started today to learn more about Quebec small business funding and other government receivables.