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, until September 25, 2010. It is implemented under the Regional Strategic Initiatives Program and includes the Fishing and Coulombe Report Economic Diversification Initiatives.

Target clientele

• Small and medium-sized enterprises (Retail trade enterprises are not eligible.)  
• 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.

Ineligible 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.

Amount of assistance

Contributions, for both SMEs and not-for-profit organizations, are determined based on the assessment of the project and authorized eligible costs.

Type of assistance

Assistance for not-for-profit organizations for projects of a non-commercial nature is usually non-repayable. Assistance for enterprises is repayable. In exceptional cases, such assistance may be non-repayable (for projects where the contribution does not exceed $100,000) or partially repayable. The type of assistance (repayable, non-repayable or a combination of the two) will be determined based on a set of criteria.

These criteria are:

• ability of the enterprise to repay
  
• level of risk associated with the project
  
• importance of the contribution for the project’s survival
  
• type of project (studies, plans and other exercises intended to increase the know-how of SMEs, and thus lead to a second investment project, are more likely to meet the criteria for a non-repayable contribution)
  
• projects headed by people, aged 35 or less
  
• enterprise startup or pre-start up projects
  
• projects by enterprises located in extremely vulnerable communities, in disadvantaged areas.

Maximum rate of assistance

For eligible SMEs, the rate of assistance is generally up to 50% of eligible and authorized costs. For other eligible beneficiaries, it is generally up to 90% of eligible authorized costs.