Investissement Québec - ESSOR Program

Insider Tip

ESSOR has genuine non-repayable grant components — but only in Components 1A, 1B, and 1C (feasibility studies and digital transformation, each capped at $20,000–$50,000). If you need larger capital investment financing (Component 2), expect a repayable loan, not a grant. The most common and accessible entry point is Component 1B/1C for SMBs undertaking digital transformation — pair with NRC-IRAP for the R&D diagnostic piece to cover up to 70%+ of the study cost non-repayably. ALL documentation must be submitted in French; this is a firm requirement, not optional.

Rejection Pitfalls 10

• Business not registered in Quebec or lacking active Quebec operations
• Excluded sector: primary agriculture/forestry/fishing, mining, real estate development, construction, public services (Component 2)
• Listed on RENA (Register of Enterprises Ineligible for Public Contracts)

Success Profile

Quebec-registered for-profit businesses in manufacturing, technology, clean energy, or agrifood sectors with clear investment projects. For Component 1 grants: SMBs undertaking feasibility studies or digital transformation with a qualified consulting firm; startups are eligible. For Component 2 loans: established businesses with 2+ years of operations, revenues >$1M, stable financials, meaningful owner equity contribution, and a project generating verifiable productivity gains or job creation. Companies with professional grant consultants (e.g., Mallette, MNP, Gurus) report higher approval rates due to documentation quality. French-language capability is a practical prerequisite.

Evaluation Criteria

Components 1A/1B/1C: eligibility-driven — qualifying projects with complete French-language documentation are typically approved. Component 2: project-evaluated — ROI and productivity gains, Quebec economic benefit (jobs, exports), owner equity contribution, financial health of the business, and minimum $100K eligible project size.

Application Steps

Required Documents 10

Eligible Expenses 7

• Components 1A/1C: external consultant professional fees meeting Quebec government management policy standards
• travel and accommodation directly tied to project implementation
• specialized information purchases (market data, licensed analyses). Component 1B: certified digital auditor fees from Quebec Digital Auditors Consortium or approved independent auditor
• travel expenses per Quebec government policy. Component 2: land and building acquisition, construction, or expansion
• equipment and software implementation
• technological transitions (cloud, AI, business intelligence)
• working capital up to 20% of total eligible project costs.

Ineligible Expenses 7

• Expenses incurred before application submission date
• internal company staff time and overhead
• capital expenditures for Components 1A/1B/1C
• debt service and interest payments
• provincial and federal sales taxes
• cost overruns beyond approved budget without prior IQ written approval
• any costs covered by another government program (anti-overlap rule).

Intake Periods

Components 1A/1B/1C: open through March 31, 2027 under the 2025–2027 normative framework. Component 2: ongoing/rolling review with no fixed end date.

Deadline Notes

ESSOR operates under a 2025–2027 normative framework. Component 1A, 1B, and 1C (feasibility/digital grants) have a confirmed deadline of March 31, 2027. Component 2 (productivity investment) is ongoing with rolling review. The program is expected to continue beyond 2027 under a new framework based on historical precedent.

Open Application Portal →

Ineligible Organizations

• Companies on RENA (Register of Enterprises Ineligible for Public Contracts)
• organizations non-compliant with Quebec francization requirements
• companies that defaulted on Quebec government financial obligations in the past 2 years
• holding companies without direct operating activities
• crown corporations and government-controlled entities
• companies under insolvency legislation. Additionally for Component 2: primary sector (agriculture/forestry/fishing, with limited exceptions), mining and oil and gas extraction, real estate and rental services, construction services, public services, healthcare institutions, educational institutions, telecommunications, and hospitality.

Compatible Programs

Clawback Risk

Medium Risk

Moderate for Component 1 grants — if project does not proceed, is materially changed without IQ approval, or ineligible expenses are claimed, IQ requires repayment of disbursed amounts. Low for Component 2 in the traditional clawback sense (it is a repayable loan), but early project abandonment may trigger accelerated repayment.