The Québec government’s investment arm, Investissement Québec, announced a new program that will disburse an estimated $4.5 billion CAD through 2027 to Québec companies looking to boost innovation and ecological sustainability.
Grand V, which falls under the purview of the Ministry of Economy, Innovation and Energy (MEIE), is a new program seeking to supply financial aid and technological support to Québec businesses of all sizes that want to minimize their environmental impact.
Québec companies of all sizes can apply for $250,000 CAD term loans, with the option of equity financing.
The initiative also seeks to address the productivity gap between Québec and Ontario, which IQ notes is ever-shrinking. Statistics Canada found that Ontario’s productivity amounted to $56.70 per hour while Québec’s was at $55 per hour in 2023—roughly a three-percent gap. Both provinces dragged down the national rate of $59.10 per hour, which decreased by 2.2 percent from the year before.
“The economic growth of Québec is strictly tied to the success of its businesses,” Minister of Economy, Innovation and Energy Christine Fréchette said in a statement. “This is how we will grow wealth to finance public services, particularly health care and education.”
IQ attributes the narrowing gap to an increase in private, non-regional investment and innovation projects, supported by an 18-percent increase in the proportion of businesses that have embarked on at least one innovation project since 2022.
“The Grand V initiative is perfectly in line with our mandate of driving growth in Québec and supporting businesses to reach their full potential,” Investissement Québec CEO Bicha Ngo said. “Investing in innovation with sustainable productivity in mind will allow businesses to advantageously position themselves in their respective markets.”
The provincial government’s public investment arm defines sustainable productivity as “the efficient use of resources, equipment, technology, and human capital to grow value while minimizing losses, waste, and environmental impact.”
Businesses of all sizes, from startups to corporations, will be eligible to apply for term loans starting at $250,000 CAD, with repayment timelines stretching to four years without affecting interest rates. Equity financing is also available, but the eligibility criteria were unclear at time of publication. BetaKit has reached out to Investissement Québec for comment.
Projects that fall within Grand V’s scope include research and development efforts that improve upon a product or make it more sustainable; the adoption of sustainable or eco-friendly technologies; and studies or consulting fees associated with innovative or sustainable projects.
The tech portion of the Grand V initiative offers companies up to 100 hours of consultation from IQ “experts” for approved projects, including the installation of sustainable technologies, product development, and factory expansion.
Successful applicants will also gain access to virtual content intended to support sustainable innovation, such as webinars and testimonials.
The initiative mirrors previous sustainable investment strategies by IQ, notably Productivité innovation launched in 2020, and Compétivert, launched in 2021.
Grand V appears to incorporate aspects from both programs, the former being more tech-focused and the latter championing a push toward sustainability. The Canadian Press reported that the combined spend on both initiatives has totalled over $5 billion CAD.
Feature image courtesy Investissement Québec.