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Community Economic Diversification Initiative – Vitality (CEDI-Vitality)

(News Release - September 25, 2006)

There are substantial economic disparities between the regions of Quebec . Combined to this is the slowdown or elimination of certain traditional economic activities in the manufacturing and natural resources sectors. Many Quebec regions and communities are experiencing difficulty adjusting due to global competition or the increase in the value of the dollar, which makes them more vulnerable to economic changes. Some are dependent on a single activity, while others are facing significant demographic decline. Therefore, the vitality of these regions and communities depends on the diversification of their economic fabric.

The Agency is establishing a measure called CEDI-VITALITY in order to better support Quebec communities experiencing slow economic growth. In the past, the Agency has supported the diversification of communities facing devitalization in certain particular sectors (e.g., fishing). The CEDI-VITALITY broadens the scope of this assistance by targeting the economic diversification of communities facing generalized economic impoverishment and posting a low vitality index. Enterprises and organizations in these communities will be able to turn to the CEDI-VITALITY to undertake projects that will foster the diversification of regional economies and the creation of sustainable jobs.

The CEDI-VITALITY will support activities aimed at diversifying the economic base of communities and assisting SMEs such as: consultants' studies and projects involving the development of strategies and action plans; business startup, expansion or modernization projects; projects involving the design, development, adjustment and demonstration of a new or improved product, process or service that constitutes a technological innovation in a particular sector; projects to strengthen local development capabilities.

The CEDI-VITALITY targets in particular projects of local reach that generate sustainable economic benefits in terms of enterprise and employment development.

The CEDI-VITALITY targets enterprises and not-for-profit organizations in the following regions: Abitibi-Témiscamingue, Bas-Saint-Laurent, Côte-Nord, Gaspésie – Îles-de-la-Madeleine, Mauricie, Nord-du-Québec, and Saguenay – Lac-Saint-Jean, as well as in the following 21 RCMs: La Vallée de la Gatineau, Papineau, Pontiac, Charlevoix Est, Charlevoix, Les Etchemins, L'Islet, L'Amiante, Montmagny, Nicolet-Yamaska, L'Érable, Asbestos, Le Haut-Saint-François, Le Granit, Matawinie, Montcalm, D'Autray, Antoine-Labelle, Argenteuil, Le Haut-Saint-Laurent, Acton.

These communities are facing major economic and employment challenges, for example regions experiencing a steady demographic decline and whose economy is dependent upon a single industry or sector or the exploitation of natural resources. This initiative will help enhance the economic diversification of 795 highly vulnerable communities where almost 1.6 million (21%) of Quebecers reside.

FINANCING

The Agency's envelope is estimated at $85 million over four years. This envelope will be available until funding is depleted and could be paired to a repayable contribution.

FEATURES

The CEDI-VITALITY will cover a set of needs by fostering the emergence of a socio-economic environment conducive to the development of entrepreneurship, the transformation or startup of new enterprises and the execution of flagship projects generating sustainable jobs.

The CEDI-VITALITY replaces the Fishing CEDI and the CEDI–Coulombe Report. Consequently, communities eligible for these initiatives remain eligible for the CEDI-VITALITY.

The CEDI-VITALITY will be implemented based on specific criteria applying to enterprises and organizations of communities in the seven regions and 21 RCMs experiencing slow economic growth, such as the enterprise's financial situation, nature of the project, impact of the Agency's contribution on the enterprise's long-term vitality, risk related to the project (pre-startup, startup), support for young proponents.

The financial contribution awarded will be determined based on an assessment of the project and the authorized eligible costs. For a commercial enterprise, a portion of the contribution could be non-repayable, up to a maximum of $100,000. The type of assistance and the amount of the non-repayable contribution will be determined based on a set of criteria.

RESULTS

This initiative will contribute to: diversifying regions‘ and communities' economic base; reducing the dependency of communities whose economy is based on a single industry or sector or the exploitation of natural resources; creating sustainable jobs; and stopping the population exodus.

Terms and conditions - Community Economic Diversification Initiative – Vitality