Explanatory document - Assistance program for businesses
Project: Feasibility study of an investment project

Objective
Eligible clienteles
Eligible investments
Types of eligible investments
Eligible studies
Examples of ineligible studies
Financial contribution
Payment of the financial contribution
Eligible expenses
Examples of ineligible expenses
Processing applications
Payment of the financial contribution

Objective

Support the implementation of investment projects in Québec by contributing financially to feasibility studies conducted prior to the decision to invest.

Eligible clienteles

Legally incorporated Québec or foreign businesses carrying out their activities in the industrial sectors under the responsibility of the ministère du Développement économique, de l'Innovation et de l'Exportation, in one of the following categories: 

• fabrication and assembly
• recycling
• services for businesses
• industrial R&D
• scientific services 

Eligible investments

Investments aimed at increasing the production of goods and services by an eligible business, repositioning the business in promising niches or increasing its productivity, where implementation of the investment project is scheduled to begin within two years after the feasibility study is submitted.

Types of eligible investments

• Addition of equipment or machines (excluding the purchase of computer hardware)
• Construction of new facilities

Eligible studies

Studies designed to validate the technical or economic parameters of an eligible investment project, with a view to reaching a decision on the advisability of investing in Québec:

• quantitative and qualitative market assessment for products related to the investment project
• evaluation of processes and technologies
• evaluation of the acquisition of a patent or know-how
• technical and economic feasibility of a project to establish or expand a business
• comparative analysis of potential sites with a view to introducing a new manufacturing activity or services for businesses
• possibility of redirecting or diversifying a business's production activities
• analysis of the regulatory and legal framework of the investment project
• feasibility of a project to merge, purchase or group businesses

The study must be entrusted to Canadian consultants not affilated with the applicant business, unless the desired expertise is unavailable in Canada.

The Department can ask the applicant business to provide more than one service offer.

Examples of ineligible studies

• Financing sources
• R&D work
• Fabrication of a prototype
• Carrying out of structure tests and other technical tests
• Preparation of a business plan
• Development of plans and specifications
• Implementation of a pilot project 

Financial contribution

Assistance is awarded in the form of a non-refundable contribution of up to 40% of eligible expenses, without exceeding $50 000.

Total financial contributions from a government department or agency, whether at the municipal, provincial or federal level, may not exceed 50% of total project expenses. Accordingly, financial assistance received from organizations with intervention funds-such as regional conferences of elected officers (CREs), local development centres (CLDs), community futures development corporations (CFDCs) and businesses development centres (BDCs)-must be included in the calculation of total financial contributions.

The business's contribution must represent at least 30% of eligible expenses.

A copy of the complete feasibility study must be submitted to the Direction générale de l'industrie et du commerce (DGIC) of the Department.

The business has exclusive rights to the use of the study for a maximum of 12 months. If the business has good reason, it may request authorization to keep its rights for an additional 12 months. Once the time period is up, the Department may use the results of the study to solicit other promoters.

If the business implements the investment project outside Québec, it must reimburse the amounts received to the Department within 36 months after the study was submitted.

Payment of the financial contribution

Generally, the financial contribution is paid in two instalments, halfway through the implementation of the project and at the end of it.

Eligible expenses

• Fees
• Expert costs
• Other expenses necessary to conducting the study

Examples of ineligible expenses

• Fees of consultants working for a business affiliated with the applicant business
• Internal expenses incurred by the applicant business
• Operating expenditures

Processing applications

Submission of applications

Applicant businesses must send a duly completed application form to the Service de la gestion des programmes (SGP) of the Department, along with the documents needed for the analysis, as specified in the form.

Receipt of applications

The SGP verifies the eligibility of the project and coordinates analysis of the file.

• If the project is eligible and the file is complete, the SGP sends an acknowledgment of receipt to the business and forwards the file to a sectoral advisor for analysis.
• If the project is eligible but the application is incomplete, the SGP notifies the business of the information to be provided. 

Analysis of applications

The sectoral advisor records his or her analysis on the sectoral opinion form, and makes a recommendation concerning the assistance to be granted on the basis of the value and benefits of the project.

Approval of applications

The financial contribution is approved by the director of the sectoral administrative unit, as recommended by the sectoral advisor in his or her opinion.

A letter announcing the assistance awarded is then sent to the applicant business, along with the agreement setting forth the terms and conditions for paying the contribution. 

Payment of the financial contribution

For additional information or to submit your application, see the addresses and numbers given below: 

Service de la gestion des programmes
Ministère du Développement économique, de l'Innovation et de l'Exportation
710, place D'Youville, 9^e étage
Québec (Québec)  G1R 4Y4
Telephone: (418) 691-8022
Fax: (418) 643-4545
Website: www.mdeie.gouv.qc.ca

Last update: December 18, 2007