The Legault government continues to sign large checks to multinationals, but it has interrupted eight support programs for SMEs since the start of the year.
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These programs have paid financial aid totaling more than $455 million to hundreds of businesses and non-profit organizations since 2022, according to a compilation carried out by The Journal.
The Ministry of the Economy, Innovation and Energy (MEIE) discreetly announced this week the interruption of three programs. Among these, we include Impulsion PME, very popular with young companies (start-ups). Since 2022, this program has invested more than $46 million in dozens of companies.
Investment Quebec
The MEIE, led by Christine Fréchette since September, also put the brakes on the BioMed Propulsion programs, which supported small biopharmaceuticals, and DÉPART, which helped businesses in certain disadvantaged regions.
“These programs were to support our start-ups until 2026. Zero press release. Just a little “note” on the program web pages on the Investissement Québec website,” lamented a new technology consultant, Phil Rivard, on LinkedIn.
“Shock and dismay”
His customers greeted the news with “a mixture of shock and dismay,” he said.
“An entrepreneur who had a planned meeting with Investissement Québec this week received a cancellation with only an hour and a half notice,” said Mr. Rivard.
Phil Rivard
Photo LinkedIn
“The most worrying thing is the startups in the middle of a financing round who were counting on Impulsion PME to complete everything,” he added.
The MEIE has also interrupted, in whole or in part, five other programs in recent months. The most important of these is the Innovation program, which saw one of its two components suspended in July. It has distributed more than $270 million in grants since 2022, including approximately $67 million during the first three months of 2024.
In February, Quebec stopped the Marketing and Export Support Program, which has paid more than $114 million in subsidies since 2022.
“These suspensions were necessary, in particular because of the enthusiasm shown by companies for certain programs, as well as to ensure the availability of funds in order to respect current and future commitments,” explained a spokesperson for the MEIE , Jean-Pierre D’Auteuil.
Reopening next year?
Catherine Pelletier, press secretary for Minister Fréchette, maintained that the government “intends to reopen” certain programs in 2025.
“We understand that recent news raises questions among our SMEs,” said Mr.me Pelletier. Our goal remains to support local businesses.”
Phil Rivard, however, was surprised that the government had not cut aid to large businesses. Last week, for example, Quebec announced an additional investment of $250 million in Nemaska Lithium, which will soon belong to the foreign giant Rio Tinto.
“Our startups are already anchored here, they create jobs here and develop our local expertise,” he underlined.
Note that the MEIE budget for the current year is $1.6 billion, or approximately $100 million less than the actual expenditures for 2023-2024.
– With Philippe Langlois, QMI Agency
Programs under the knife
Innovation
- Clientele: SMEs with innovation projects
- Subsidies paid since 2022: $271 million
Marketing and Export Support Program
- Clientele: exporting companies
- Subsidies paid since 2022: $114 million
SME Impulse
- Clientele: young innovative companies
- Investments since 2022: $46.4 million
BioMed Propulsion
- Clientele: life sciences sector
- Investments since 2022: $16.7 million
Economic development program to help with the revitalization of territories (DEPART)
- Clientele: SMEs located in devitalized regions
- Subsidies paid in 2024: $6 million
Collective Entrepreneurship Capital Program (PIEC)
- Clientele: social economy companies
- Aid paid in 2023: $2 million
Other suspended programs: Immigrant Investor Program for Business Assistance, ESSOR Program Part 1
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