CED Business Scale‑up and Productivity (REGI): How to Apply for SMEs and Not‑for‑Profits

CED Business Scale‑up and Productivity (REGI): How to Apply for SMEs and Not‑for‑Profits

If your organization is based in Quebec and planning a growth or productivity project, the CED Business Scale‑up and Productivity (REGI) program can cover a large share of your costs. Canada Economic Development for Quebec Regions (CED) delivers this program under the federal Regional Economic Growth through Innovation (REGI) framework. The program supports scaling, technology adoption, and market expansion for both SMEs and not‑for‑profits.

This guide explains how the program works, who qualifies, and how to apply—using the real rules CED officers look for.

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What Is the CED Business Scale‑up and Productivity (REGI) Program?

The CED Business Scale‑up and Productivity (REGI) program provides repayable or non‑repayable federal funding. This funding helps Quebec organizations grow through innovation and productivity improvements.

There are two main streams:

• REGI for SMEs
• REGI – Not‑for‑profit

Both streams fund similar project types. However, they differ in funding percentages and repayment terms.

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Who Is Eligible Under REGI?

Eligibility depends on the stream, but CED applies clear baseline rules.

Eligible Organizations

You may qualify if your organization is one of the following and operates in Quebec:

• Small or medium‑sized enterprises (SMEs)
• Not‑for‑profit organizations (NPOs)
• Co‑operatives
• Business associations or support organizations
• Indigenous organizations

Eligible Sectors

Projects must support innovation, productivity, or expansion in sectors such as:

• Manufacturing
• Food processing
• Information, communications, and multimedia technologies
• Life sciences

Projects outside these sectors may still be considered if they clearly drive regional economic growth.

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How Much Funding Can You Get as a Not‑for‑Profit?

• Up to 90% of eligible project costs
• Up to 50% for capital projects
• Funding may be non‑repayable, depending on project type

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How Much Funding Can You Get as an SME?

• Up to 50% of eligible project costs
• Funding is repayable and interest‑free
• Repayment starts two years after the project ends

CED funding is structured as a repayable contribution, not a traditional bank loan. Repayment terms are set in your contribution agreement.

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What Types of Projects Does REGI Fund?

CED looks for projects that produce measurable growth or productivity gains.

Commonly funded activities include:

• Buying digital production equipment or machinery
• Modernizing facilities or infrastructure
• Commercialization and market development
• Process automation or efficiency improvements
• Business management systems and productivity tools

All costs must be:

• Directly related to the project
• Reasonable and essential
• Incurred after approval

For more details, see:
Eligible Expenses Under Regional Economic Development Grants in Quebec (CED)

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How to Apply for CED Business Scale‑up and Productivity (REGI)

CED does not use a one‑click application. The process is relationship‑driven and structured.

Step 1: Prepare a Strong Project Outline

You will need:

• A clear project description and objectives
• Total project budget and timeline
• Expected outcomes (jobs, productivity, revenue growth, exports)

CED officers care most about economic impact, not just cost coverage.

Step 2: Contact Your Regional CED Office

Applications usually start with a discussion with a CED economic development officer. They will confirm:

• Program fit
• Funding structure (repayable vs non‑repayable)
• Required documents

Step 3: Submit a Full Application

If invited, you will submit:

• Financial statements
• Project budget and cash flow
• Organizational background and governance details
• Proof of other financing, if required

GrantHub’s eligibility matcher can help you quickly check if REGI and similar Quebec programs fit your organization before you spend time on a full application.

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Common Mistakes to Avoid

1. Applying with an operational expense project
   REGI does not fund routine operating costs. Your project must drive growth or productivity.

2. Underestimating repayment obligations
   Even interest‑free funding must be repaid. Cash flow planning matters.

3. Submitting without regional officer alignment
   Most rejected applications skip early CED discussions.

4. Vague economic outcomes
   CED expects concrete results like productivity gains, job creation, or market expansion.

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Frequently Asked Questions

Q: Is REGI funding a grant or a loan?
REGI funding is a repayable contribution, similar to an interest‑free government loan. Some not‑for‑profit projects may receive non‑repayable funding depending on the activity.

Q: When does repayment start?
For repayable REGI funding, repayment typically begins two years after the project ends.

Q: Can not‑for‑profits apply for business scale‑up funding?
Yes. NPOs are eligible when projects support regional economic development, productivity, or innovation.

Q: Is REGI funding taxable?
REGI funding is treated as government assistance and may affect taxable income depending on your accounting treatment. Always confirm with your accountant.

Q: Can REGI be combined with other grants?
Yes, but total government assistance limits apply. CED will review stacking carefully.

GrantHub tracks hundreds of active grant programs across Canada—including federal and Quebec‑specific funding—so you can see which options align with your organization’s profile.

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Next Steps

The CED Business Scale‑up and Productivity (REGI) program is one of the most important federal growth tools for Quebec‑based SMEs and not‑for‑profits. Success depends on project fit, strong economic outcomes, and early alignment with CED.

If you are planning a scale‑up, automation, or commercialization project, your next step is to compare REGI with other regional and sector‑specific programs. GrantHub helps you do that efficiently so you can focus on building a strong application—not searching for programs.