Supplementary Information: 2025–26 Departmental Plan

Summary:

The additional information provided in this publication is a supplement to the 2025–26 Departmental Plan.

Table of contents

 

Details on transfer payments

Regional Economic Growth through Innovation (REGI)

Start date: October 18, 2018

End date: Permanent program

Type of transfer payment: Grants and Contributions.

Type of appropriation: Annual allocation of funds through the expenses budget.

Fiscal year for terms and conditions: 2018-2019

Link to departmental result(s): Quebec businesses are innovative and growing Businesses invest in the development and commercialization of innovative technologies in Quebec

Link to the department’s Program Inventory: The REGI program falls under the Regional Innovation and Temporary or Targeted Support programs.

Purpose and objectives of transfer payment program:

The REGI is a national program that supports the economic growth of businesses through innovation. In Quebec, it is delivered by CED, considering the needs of Quebec businesses and regions. The REGI program has two streams:

  1. Business scale-up and productivity: CED fosters the development of businesses by helping them scale-up, be more productive and grow through innovation (adoption or adaptation of advanced technologies; demonstration; and commercialization and market development).
  2. Regional innovation ecosystems: CED also contributes to the creation of an entrepreneurial environment conducive to innovation by supporting the development of regional innovation ecosystems that meet the needs of businesses and foster their growth and competitiveness.

As part of CERI, CED is also implementing the following initiatives in Quebec, for which additional funding has been granted:

  • The Regional Homebuilding Innovation Initiative (RHII), which aims to advance innovative housing solutions and boost productivity in the construction sector, by encouraging the development, adoption and scaling-up of new methods and technologies in Quebec.
  • The National Quantum Strategy, which aims to support SMEs and not-for-profit organizations wishing to evolve in the quantum field by adopting, developing and commercializing this type of innovative technology.
  • The Regional Artificial Intelligence Initiative (RAII), which aims to support product development, commercialize new AI-related technologies and solutions, and accelerate the adoption of AI in critical sectors of the Canadian economy across the country, including agriculture, cleantech, life sciences and manufacturing.

In addition, CED is implementing the following targeted measure through CERI and its regular funds:

  • The Initiative to Support Economic Development in Montréal’s East End, which aims to promote development opportunities that foster the revitalization, attractiveness and sustainable reindustrialization of the region.

SME recipients receive repayable contributions. Non-profit organization recipients receive non-repayable contributions or grants.

Expected results: The REGI will continue to target the two following departmental results:

  1. Quebec businesses are innovative and growing
  2. Businesses invest in the development and commercialization of innovative technologies in Quebec

A set of six indicators is used to measure CED’s progress with respect to the achievement of these results. These indicators are primarily based on economic statistics (e.g., value of Quebec goods’ exports) and data from projects that received funding (e.g., revenue growth rate of businesses supported by CED programs). CED presents the most recent metrics for these indicators in its annual Departmental Results Report.

The fluctuation in outcomes is dependent on a number of factors, including the economic environment. DEC therefore expects its results to fluctuate, although over the long term they should show positive progress.

Fiscal year of last completed evaluation: 2023-2024

Decision following the results of last evaluation: Continuation

Fiscal year of next planned evaluation: 2028-2029

General targeted recipient groups:

The main recipients of REGI funding are:

  • businesses
  • groups of businesses
  • organizations that support and provide services to businesses at various stages of their development to help them boost their growth, facilitate or improve their scale-up and develop their markets
  • college centres for technology transfer (CCTTs)
  • NPOs that provide services or generate benefits for businesses
  • business incubators and accelerators
  • municipalities and regional county municipalities (RCMs)
  • groups and associations that may include NPOs, businesses, post-secondary institutions or consortiums
  • Indigenous organizations

Initiatives to engage applicants and recipients:

The Agency is currently developing a transactional portal that will eventually offer customers a digital option for the entire grants and contributions management cycle, from application to full repayment of the contribution.

Each phase of deployment is accompanied by a feedback period with user customers, which includes a short digital survey and, on a sample basis, a telephone call to further explore the responses obtained. This enables us to effectively guide the development of the transactional portal phases and ensure alignment with customer needs.

Financial information (dollars)
Type of transfer payment 2024-25 forecast spending 2025-26 planned spending 2026-27 planned spending 2027-28 planned spending
Total grants 0 1,000,000 1,000,000 1,000,000
Total contributions 181,926,809 174,669,768 102,733,084 102,643,516
Total other types of transfer payments 0 0 0 0
Total program 181,926,809 175,669,768 103,733,084 103,643,516

Community Futures Program (CFP)

Start date: May 18, 1995

End date: Permanent program

Type of transfer payment: Contributions.

Type of appropriation: Annual allocation of funds through the expenses budget.

Fiscal year for terms and conditions: 2010-2011

Link to departmental result(s): Communities are economically diversified in Quebec

Link to the department’s Program Inventory: The CFP falls under the Vitality of Communities Program

Purpose and objectives of transfer payment program: The CFP supports local economic development and strengthens the capacity of rural communities to realize their full potential in a sustainable manner. The program’s main objectives are:

  • stability, economic growth and job creation;
  • diversified and competitive local economies in rural areas; and
  • sustainable communities.

CFP funding targets non-profit community development organizations and their common structures (network, funds), which are awarded non repayable contributions.

Expected results:

The CFP will continue to target the following departmental result: “Communities are economically diversified in Quebec.”

A set of three indicators is used to measure CED’s progress with respect to the achievement of this departmental result. These indicators are primarily based on economic statistics (e.g., percentage of SMEs in Quebec that are majority-owned by women, Indigenous peoples, youth, visible minorities or persons with disabilities) and data from projects that received funding (e.g., amount leveraged per dollar invested in community projects). CED presents the most recent metrics for these indicators in its annual Departmental Results Report.

The CFP is a national program delivered in Quebec by CED. It therefore has national indicators (e.g., the extent to which the growth in sales of CFP-assisted clients exceeds that of comparable unassisted firms, expressed in percentage points).

Fiscal year of last completed evaluation: 2019-2020

Decision following the results of last evaluation: Continuation

Fiscal year of next planned evaluation: 2024-2025

General targeted recipient groups:

The CFP provides financial assistance for Community Futures Development Corporations (CFDCs), Business Development Centres (BDCs) and the Network of CFDCs and BDCs.

Initiatives to engage applicants and recipients:

The Agency is currently developing a transactional portal that will eventually offer customers a digital option for the entire grants and contributions management cycle, from application to full repayment of the contribution.

Each phase of deployment is accompanied by a feedback period with user customers, which includes a short digital survey and, on a sample basis, a telephone call to further explore the responses obtained. This enables us to effectively guide the development of the transactional portal phases and ensure alignment with customer needs.

Financial information (dollars)
Type of transfer payment 2024-25 forecast spending 2025-26 planned spending 2026-27 planned spending 2027-28 planned spending
Total grants 0 0 0 0
Total contributions 33,427,175 3,990,958 34,990,958 34,990,958
Total other types of transfer payments 0 0 0 0
Total program 33,427,175 34,990,958 34,990,958 34,990,958

Quebec Economic Development Program (QEDP)

Start date: April 1, 2012

End date: Permanent program

Type of transfer payment: Grants and Contributions.

Type of appropriation: Annual allocation of funds through the expenses budget.

Fiscal year for terms and conditions: 2011-2012

Link to departmental result(s): Communities are economically diversified in Quebec

Link to the department’s Program Inventory: The QEDP falls under the Community Vitality and Temporary or Targeted Support programs.

Purpose and objectives of transfer payment program:

The QEDP supports regional economic development and diversification and helps the regions pursue promising economic development opportunities going forward.

As part of the QEDP, CED is also implementing the following initiatives in Quebec, for which additional funding has been granted:

  • The Tourism Growth Program (TGP), designed to support communities, SMEs and non-profit organizations working in the tourism sector, for the development of local projects and tourism events.
  • The Northern Isolated Communities Initiatives (NICI) Fund, designed to support existing and new food initiatives that strengthen and diversify economic activity in the North. In Quebec, the target territory is Nunavik.

In addition, CED is implementing two targeted measures through the QEDP using its regular funds:

  • The Initiative to Support Economic Development in Montréal’s East End, which aims to promote development opportunities that foster the revitalization, attractiveness and sustainable reindustrialization of the region.
  • Support for Social Economy Mutualization Projects, which aims to support the pooling of equipment by social economy enterprises, with a view to increasing their sustainability, productivity, growth, marketing capacity or innovation, thereby contributing to the economic vitality of communities.

The Economic Development Initiative - Official Languages (EDI-OL) is a regular national program aimed at developing and diversifying official-language minority communities (OLMCs), i.e. English-speaking communities in Quebec.

SME recipients normally receive repayable contributions. Recipients that are not-for-profit organizations normally receive non-repayable contributions or grants.

Expected results:

The QEDP will continue to target the following departmental result: “Communities are economically diversified in Quebec.”

A set of three indicators is used to measure CED’s progress with respect to the achievement of this departmental result. These indicators are primarily based on economic statistics (e.g., percentage of SMEs in Quebec that are majority-owned by women, Indigenous peoples, youth, visible minorities or persons with disabilities) and data from projects that received funding (e.g., amount leveraged per dollar invested in community projects). CED presents the most recent metrics for these indicators in its annual Departmental Results Report.

Fluctuations in results depend on a number of factors, including the economic environment. DEC therefore expects its results to fluctuate, although over the long term they should show positive progress.

Fiscal year of last completed evaluation: Under evaluation

Decision following the results of last evaluation: Not applicable

Fiscal year of next planned evaluation: 2026-2027

General targeted recipient groups:

The main recipients of QEDP funding are as follows:

  • non-profit organizations
  • economic development organizations
  • municipalities and regional county municipalities (RCMs)
  • organizations tasked with attracting international organizations and foreign investment
  • businesses with a local and regional reach
  • groups of businesses

Initiatives to engage applicants and recipients:

The Agency is currently developing a transactional portal that will eventually offer customers a digital option for the entire grants and contributions management cycle, from application to full repayment of the contribution.

Each phase of deployment is accompanied by a feedback period with user customers, which includes a short digital survey and, on a sample basis, a telephone call to further explore the responses obtained. This enables us to effectively guide the development of the transactional portal phases and ensure alignment with customer needs.

Financial information (dollars)
Type of transfer payment 2024-25 forecast spending 2025-26 planned spending 2026-27 planned spending 2027-28 planned spending
Total grants 110,000 1,666,000 1,650,000 1,500,000
Total contributions 63,464,059 67,668,312 37,852,236 35,183,071
Total other types of transfer payments 0 0 0 0
Total program 63,574,059 69,334,312 39,502,236 36,683,071

Gender-based analysis plus

Section 1: Institutional GBA Plus governance and capacity

Governance

CED's Coordination Center for GBA Plus is made up of a champion and two other resources who ensure that GBA Plus is integrated into CED's decision-making processes, and that program design, implementation and evaluation consider the potential impact on the population, including under-represented groups in Quebec regions.

Capacity

In 2025-2026, CED will continue to implement the components of its ACS Plus Framework to strengthen its institutional capacity and its approach to equity, diversity and inclusion (EDI), in the development and implementation of its initiatives as well as in its intervention with its clientele. In this respect, CED will act on three levels:

1. Program integration: The GBA Plus Coordination Center will continue to strengthen the EDI Ambassadors Network, an internal community of practice established in 2021, with the aim of improving the operationalization of its EDI approach in the delivery of its programs across the 12 business offices. This approach involves promoting the importance and economic benefits of integrating the concepts of equity, diversity and inclusion into the activities of its customers, and understanding their needs in this area.

In addition, CED will actively participate in several forums and committees to keep abreast of best practices and opportunities for continuous improvement in the implementation of GBA Plus and EDI in the administration of its programs:

  • GBA Plus Interdepartmental Committee (Women and Gender Equality Canada)
  • Federal network for the advancement of gender equality in Quebec and Nunavut (Women and Gender Equality Canada)
  • EDI working group (inter-RDA)
  • Women Entrepreneurship Interdepartmental Steering Committee (ISED)
  • Human Trafficking Taskforce (Public Safety Canada)

2. Data, reporting and evaluation: CED is continuing its efforts to identify additional ways to integrate and adopt best practices for GBA Plus and EDI, in terms of data collection and analysis, targets and indicators monitored, as well as its integration into research and program evaluation activities. For example:

  • CED will pursue its continuous improvement efforts regarding its EDI approach implemented in 2022-2023
  • CED will evaluate the recommendations related to ACS Plus as part of the five-year evaluation of the PDEQ and the CERI evaluation finalized in 2023-2024.
  • In 2024-2025, CED has begun an ACS Plus analysis of its regular programs, Quebec Economic Development Program (QEDP) and Regional Economic
  • Growth through Innovation (REGI), to fully understand how they affect various populations in different regions and communities of Quebec, according to a set of identity factors that intersect with sex and gender (e.g. age, language, geographic location and sexual orientation). In 2025-2026, CED will consider the findings of this analysis in the implementation and development of its programs and initiatives.

3. Staff awareness and training: CED will continue to enhance the GBA-Plus capacity of its workforce by means of targeted communications; mandatory staff participation in the course given by Women and Gender Equality Canada (Introduction to GBA Plus); and various outreach activities such as lectures and panels or Tea & TED talks on EDI-related topics.

Human resources (full-time equivalents) dedicated to GBA Plus

In 2025-2026, 1.25 FTEs will be assigned to ACS Plus within CED. These are the resource people who play a role in coordinating and implementing ACS Plus.

Section 2: Gender and diversity impacts, by program

Core responsibility: Developing Quebec’s Economy

Program name: Regional Innovation

Program goals: Enhance the competitiveness and growth of Québec businesses

GBA Plus data collection plan

The data collected by CED monitors and reports on program impacts based on gender and diversity, the identification of potential gaps in terms of program accessibility of various underrepresented groups in the regions of Quebec. In accordance with the departmental results framework approved by Treasury Board in 2017, CED has established performance measurement targets for supported SMEs that are owned by several underrepresented groups on which it performs reporting.

In addition, CED tracks several GBA Plus-related indicators through a self-reporting form, including: 1) the number and value of projects carried out by SMEs and NPOs that are majority-owned or led by women, youth, members of Aboriginal peoples, newcomers to Canada and immigrants, people with disabilities, or members of official-language minority communities (OLMCs), members of Black communities, racialized communities or 2ELGBTQI+ communities; and 2) the number and value of projects that directly support the above-mentioned under-represented groups.

Through its EDI approach, implemented from 2022-2023, CED aims to refine its understanding of how its customers integrate EDI into their internal practices. The data collected and the analysis of this approach, carried out in 2024-2025, will enable us to better understand our customers' progress in this area, and to consider ways of better supporting their needs. This information will be added to that already collected through our self-declaration form, which is used for statistical purposes to better identify the impact of our programs and initiatives.

In addition, the results of the REGI evaluation published in 2023-2024 and the resulting recommendations will enable CED to identify gaps and opportunities in ACS Plus.

Core responsibility: Developing Quebec’s Economy

Program name: Community Vitality

Program goals: Promoting community vitality

GBA Plus data collection plan

The data collected by CED under this priority helps monitor and report on program impacts based on gender and diversity, the identification of potential gaps in terms of program accessibility of various underrepresented groups in the regions of Quebec. In accordance with the departmental results framework approved by Treasury Board in 2017, CED has established performance measurement targets for supported SMEs that are owned by several underrepresented groups on which it reports.

In addition, CED tracks several GBA Plus-related indicators through a self-reporting form, including: 1) the number and value of projects carried out by SMEs and NPOs that are majority-owned or led by women, youth, members of Aboriginal peoples, newcomers to Canada and immigrants, people with disabilities, or members of official-language minority communities (OLMCs), members of Black communities, racialized communities or 2ELGBTQI+ communities; and 2) the number and value of projects that directly support the above-mentioned under-represented groups.

Through its EDI approach implemented since 2022-2023, CED aims to refine its understanding of how its customers integrate EDI into their internal practices. The data collected, and the analysis of this approach carried out in 2024-2025, will enable us to better understand our customers' progress in this area, and to consider ways of better supporting their needs. This information will be added to that already collected through our self-declaration form, which is used for statistical purposes to better identify the impact of our programs and initiatives.

In addition, the results of the five-year review of the QEDP initiated in 2024-2025 will enable CED to identify gaps and opportunities in GBA Plus.

Core responsibility: Developing Quebec’s Economy

Program name: Targeted or temporary support

Program goals: Supporting the economic resilience of businesses and regions

GBA Plus data collection plan

The data collected by CED monitors and reports on program impacts based on gender and diversity, the identification of potential gaps in terms of program accessibility of various underrepresented groups in the regions of Quebec. In accordance with the departmental results framework approved by Treasury Board in 2017, CED has established performance measurement targets for supported SMEs that are owned by several underrepresented groups on which it reports.

In addition, CED tracks several GBA Plus-related indicators through a self-reporting form, including: 1) the number and value of projects carried out by SMEs and NPOs that are majority-owned or led by women, youth, members of Aboriginal peoples, newcomers to Canada and immigrants, people with disabilities, or members of official-language minority communities (OLMCs), members of Black communities, racialized communities or 2ELGBTQI+ communities; and 2) the number and value of projects that directly support the above-mentioned under-represented groups.

CED will continue to contribute to the national targets set collectively by the RDAs for underrepresented groups for each of the Budget 2024 initiatives for which it was logical and feasible to do so based on the objectives and target clientele, namely:

  • Tourism Growth Program (TGP) for all under-represented groups.
  • Northern Isolated Community Initiatives (NICI) Fund for northern and aboriginal communities.

Through its EDI approach implemented since 2022-2023, CED aims to refine its understanding of how its customers integrate EDI into their internal practices. The data collected will enable us to better understand our customers' current state of progress in this area, and to consider ways of better supporting their needs. This information will be added to that already collected via its self-declaration form, which is used for statistical purposes to better identify the impact of programs and initiatives.

In addition, the results of the five-year review of the QEDP and the recommendations arising from the REGI evaluation published in 2023-2024 will enable CED to identify potential gaps and opportunities with regard to ACS Plus.

The department’s operating context for 2025-26

Context

After a year of stagnation in 2023, the Quebec economy returned to growth in 2024, albeit at a slower pace than its average in recent years and unable to reverse the moderate deterioration in the labor market. Also, this economic growth is struggling to keep pace with demographic growth, the highest in five decades, leaving GDP per capita unchanged from its 2019 level.

However, this economic recovery is not widespread. For example, difficulties persist in sectors whose activities depend on consumer spending, a fortiori discretionary spending, while purchasing power is limited by the rising cost of living, particularly housing. What's more, this recovery is uneven, depending on the regional or demographic outlook.

Perspectives

Over the medium term, in 2025 and 2026, an acceleration in economic growth is anticipated, supported by more accommodating borrowing costs, residential construction and demographic growth.

Irrespective of the economic situation over the next few quarters, the economic outlook for Quebec businesses and the Quebec economy will continue to be hampered by structural issues such as lagging productivity, a tight labor market, shortcomings in innovation and commercialization, and low entrepreneurial intensity. These challenges call for a major investment turnaround.

In addition, external challenges such as geopolitical uncertainties, fluctuating commodity prices and trade tensions could weigh on Quebec's exports and economic growth. Also, the need to adapt the economy to environmental issues could impose short-term costs, even if long-term benefits are anticipated.

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