CED Quebec — REGI Business Scale-up and Productivity

Insider Tip

CED assigns a business advisor to every applicant before formal submission — this advisor is your internal champion. Call your regional CED office first. Frame your project around productivity metrics rather than general growth ambitions. SR&ED tax credits are often excluded from the 75% stacking cap, so you can layer SR&ED on top of CED to reduce net costs to 25-30%.

Rejection Pitfalls 6

• Ineligible sector: retail, food services, transportation, housing, daycare, personal services
• Project is operational (ongoing expenses) rather than a defined investment
• Cannot co-fund at least 50% from non-government sources

Success Profile

Quebec-based SME in manufacturing, food processing, ICT, or life sciences. 10-100 employees, 3+ years operating, $1M+ annual revenue. Investing in specific productivity improvements with measurable economic impact.

Evaluation Criteria

Non-competitive eligibility-based assessment. CED evaluates: (1) sector and project eligibility gate; (2) measurable economic impact case (jobs, revenue, productivity, exports); (3) financial viability to co-fund at 50%+; (4) leverage ratio ($4+ private dollars per CED dollar); (5) project readiness with validated costs and confirmed co-funding. No scoring rubric — advisors work collaboratively to strengthen weak applications rather than simply rejecting.

Application Steps

Required Documents 7

Eligible Expenses 7

• Purchase of capital equipment and machinery (new or substantially upgraded)
• Leasehold improvements directly enabling the project
• Software licenses and digital technology adoption (ERP, MES, automation systems)
• Commercialization activities (prototyping, market trials, product launches)
• Professional fees directly tied to project delivery (engineering, consulting, certification)
• Salaries for project-dedicated staff (portion attributed with documentation)
• Training costs directly related to new technology adoption

Ineligible Expenses 9

• Land purchase or real estate acquisition
• Buildings and general construction (unless directly required for equipment installation)
• Refinancing of existing debt
• Goodwill, franchises, or IP purchased at inflated value
• Routine operating expenses (rent, utilities, general salaries, general marketing)
• Expenditures incurred before CED approval
• GST/HST on eligible costs
• Interest and financing charges
• Contingency reserves

Intake Periods

Continuous year-round intake. Budget runs on federal fiscal year (April 1 – March 31). Submitting in Q1 (April–June) maximizes budget availability.

Deadline Notes

Continuous intake year-round. Budgets allocated on a fiscal-year basis (April 1 – March 31); submitting early in Q1 may improve access.

Open Application Portal →

Ineligible Organizations

• Retail trade businesses
• Restaurants and food service establishments
• Road passenger and freight transportation companies
• Residential housing construction companies
• Licensed childcare and daycare operators
• Personal consumer service businesses
• Financial services firms
• Professional service firms (law, accounting) as primary activity

Compatible Programs

Clawback Risk

Medium Risk

Moderate. If project fails to achieve committed economic outcomes (jobs, revenue, productivity), CED may demand early repayment or refuse to release final claim reimbursement. Ownership changes (company sale) during or within 2-3 years of project completion may trigger early repayment assessment. Unspent contributions must be returned.