Community Economic Diversification Initiative – Vitality (CEDI-VITALITY)

CEDI-VITALITY was created to support communities with slow economic growth in seven regions and 21 Quebec regional county municipalities (MRCs).

The initiative is intended to:

• diversify the economic base these communities
• reducing the dependency of communities whose economies are based on a single industry or sector, or on natural resource development
• create sustainable employment
• decrease population exodus.

Canada Economic Development is allocating $85 million over four years for this measure, which is implemented under the Regional Strategic Initiatives Program and includes the Fishing and Coulombe Report Economic Diversification Initiatives.

Target clientele

• SMEs
• business groups and industry associations
• organizations or institutions dedicated to promoting and disseminating knowledge
• non-profit economic organizations
• organizations or enterprises operating a regional attraction that gives the community a special competitive advantage
• municipalities and municipal agencies

The initiative covers seven regions and 21 MRCs.

Regions : Abitibi-Témiscamingue, Bas-Saint-Laurent, Côte-Nord, Gaspésie–Îles-de-la-Madeleine, Mauricie, Nord-du-Québec and
Saguenay–Lac-Saint-Jean.

MRCs : 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.

Eligible activities

The “Increasing the competitiveness of enterprises and communities” component:

• consultants’ studies and projects concerned with the development of strategies and action plans
  
  
• capital projects for enterprises: startup, expansion, modernization
  
  
• establishment and expansion of transfer centres, watch centres and entrepreneurship support organizations
  
  
• incubation, guidance, monitoring and technical support activities for enterprises in the pre-startup or startup phases
  
  
• projects aimed at enhancing co-operation between knowledge institutions and enterprises
  
  
• development of niche products
  
  
• design, development, adjustment and demonstration of a new or improved product, process or service that constitutes a technological innovation in a particular sector
  
  
• pre-marketing and marketing of new products, processes or services
  

The “Increasing communities’ dynamism and vitality” component:

• strategic and timely projects aimed at providing a region or a community with competitive advantages
  
  
• projects that strengthen local development capabilities
  
  
• projects that foster the growth and development of social economy enterprises.

Eligible costs

Eligible costs are those deemed reasonable and necessary to carry out the project, excluding the following capital costs:

• the cost of land
• the cost of motor vehicles not exclusively being used on the project site
• the part of the cost of any capital asset exceeding its fair market value.

Type of assistance

Contributions are determined based on the assessment of the project and the authorized eligible costs.

For commercial enterprises, part of the contribution may be non-repayable. This non-repayable amount must be less than $100,000.  

The type of assistance (repayable, non-repayable or a combination of the two) and assessment of the non-repayable contribution amount granted will be based on various factors, including the enterprise’s financial situation, the demonstrated need of non-repayable funding for project execution, the importance the contribution will have on the enterprise’s long-term survival, the level of risk associated with the project, etc.

Contributions made to non-profit organizations for projects of a non-commercial nature are generally non-repayable.

Maximum rate of assistance

For commercial enterprises, generally up to 50% of eligible and authorized costs.

For other eligible beneficiaries, generally up to 90% of eligible and authorized costs.

Stacking of assistance

The Agency’s Policy on the Stacking of Assistance applies.