Question Period Note: CED support for regions with slow economic growth

CED support for regions with slow economic growth

• Canada Economic Development for Quebec Regions is committed to the development of all regions of Quebec, particularly those with slower economic growth.

• Canada Economic Development for Quebec Regions adapts to the reality of these communities and actively works with local economic stakeholders in order to support structuring projects.

• Since November 2015, Canada Economic Development for Quebec Regions has authorized assistance totaling more than 1 billion dollars in slow-growth regions, thus contributing to the diversification of these areas.

Canada Economic Development for Quebec Regions is sensitive to the economic reality of regions with slow growth and pays great attention to projects from these communities, especially by allowing a certain flexibility in its programming.

• CED adapts its interventions to the economic reality of regions of Quebec .
• To achieve this, CED adopted a tool, the Economic Development Index (EDI), which allows it to rank the 104 regional county municipalities (RCMs) of Quebec according to their economic growth potential. Also, for RCMs with slower economic growth potential, CED applies more flexible intervention parameters.
• The factors influencing the economic growth potential of each region are thus taken into account, including the workforce, access to markets, the entrepreneurial pool, industrial diversification, demographic growth, investments and the education of the population.
• Since April 1, 2023, following a revision of its economic development index, CED now assesses at 75 the number of RCMs with slow economic growth potential.
• Here are a few examples demonstrating CED's flexibility in terms of programming when a project is carried out in one of the 75 RCMs with slow economic growth potential:

Aid rate:
- Usually, the maximum CED assistance rate is 50% for SME projects aimed at purchasing equipment, expanding existing buildings or hiring specialized resources. In the 75 RCMs with slow growth potential, it can rise to 75% for costs related to fixed assets, when justified, and up to 90% for costs related to the hiring of specialized resources.

Eligible project or costs in the 75 RCMs with slow potential, only:
- Construction of a new building (including the expansion or enlargement of existing buildings), for manufacturing SMEs;
- Projects in tourist accommodation targeting establishments with less than three stars or targeting glamping or ready-to-camp units;
- Primary transformation projects in the agri-food and fisheries sectors under certain conditions.

Canada Economic Development for Quebec Regions (CED) pays particular attention to communities that have to overcome economic and structural issues. Through its programming, CED has given itself the necessary flexibility to support regions with slow economic growth more effectively. With its strong presence all over Quebec and in-depth knowledge of the regions, CED adapts its interventions to their specific needs by focusing on their strength and assets and by supporting their efforts to diversify their economy and so that they can develop their full potential.