SME grants in Quebec and funding programs to know in 2026

Key takeaway: Funding for SMEs in Quebec takes two main forms: competitive grants, awarded through calls for projects or until funds run out, and tax credits claimed with the tax return. A company’s need, whether R&D, equipment, exports or workforce, guides the choice of program.

In fiscal 2025–2026, CanExport SMEs received nearly 4,000 applications, and about 40% of eligible applications were approved. That ratio sums up the reality of SME grants in Quebec: the funds exist, but they go to well-targeted applications filed at the right time.

Between federal, provincial and sector-specific programs, a business owner can lose hours reading criteria that do not apply to their company.

This guide sorts the main funding programs by the need to be financed and offers concrete benchmarks for preparing an application.

How SME grants in Quebec differ from tax credits

In brief: The form of assistance determines when you apply and how the money is paid.

A grant, or contribution, is awarded under a program with a limited envelope. The application is assessed, often in competition with others, and the funding is then paid under an agreement. Under CanExport SMEs, for example, a contribution is reimbursed once expenses have been incurred and paid.

A tax credit is available to any corporation that meets the criteria. It is claimed with the tax return, after the expenditures have been made. When it is refundable, like the C3i, it can be paid even if the company owes no tax.

The two are often combined. A manufacturing SME can, for example, claim SR&ED for its prototype testing and the C3i for equipment purchased in the same year.

The main SME grants in Quebec by need

Sorting programs by need quickly rules out those that do not apply to your company.

Need	Program	Organization	Form of assistance	Benchmark
Research and development	SR&ED	Canada Revenue Agency	Tax credit	35% refundable for a CCPC
R&D and innovation in Quebec	CRIC	Revenu Québec	Refundable tax credit	Replaces several R&D credits since 2025
Technological innovation project	NRC IRAP	National Research Council Canada	Contribution and advisory support	Support from an advisor
IT solutions integrating AI	CDAE-IA	Investissement Québec and Revenu Québec	Payroll tax credit	Information technology companies
Equipment and software	C3i	Revenu Québec	Refundable tax credit	15% to 25% depending on the region
Investment and productivity	ESSOR	Investissement Québec	Financing or assistance depending on the stream	Investment projects in Quebec
Exports	CanExport SMEs	Trade Commissioner Service	Grant or contribution	$10,000 to $50,000 per project
Training and hiring	Employment measures	Services Québec	Financial assistance	Depends on the measure and region

Funding your SME’s research and innovation

In brief: SR&ED and the CRIC form the foundation of R&D funding, complemented by other programs depending on the company’s profile.

SR&ED is open to companies of all sizes and in all sectors that carry out research or experimental development work in Canada. A CCPC receives a 35% refundable credit.

According to a KPMG analysis of the SR&ED reform, this enhanced rate applies up to $6M of expenditures for tax years beginning on or after December 16, 2024, compared with $3M previously. Capital expenditures are also eligible again. The calculation of the SR&ED tax credit is covered in a separate guide.

In Quebec, the 2025–2026 budget replaced several measures, including the R&D salary credit, with the CRIC tax credit. It applies to tax years beginning after March 25, 2025.

Tech SMEs can also look at the NRC IRAP program, which combines funding with support from an advisor, or the CDAE-IA for e-business solutions that integrate artificial intelligence.

To find out which credits apply to your projects, an eligibility assessment by an advisor lets you sort things out before building an application.

Modernizing your equipment and systems

In brief: The C3i reduces the after-tax cost of equipment, while programs like ESSOR support larger investment projects.

The investment and innovation tax credit (C3i) covers manufacturing and processing equipment, computer equipment and new management software used in Quebec, among other items. Since 2024, its rate has been 25%, 20% or 15%, depending on the region where the property is used.

The rate applies above an exclusion threshold. For example, for $105,000 of management software used in the Montreal Metropolitan Community, the indicative credit would be $15,000, or 15% of $100,000 after the $5,000 threshold. The C3i tax credit guide explains eligible property and deadlines.

For an expansion or a major digital transformation, Investissement Québec’s ESSOR program can round out the financing plan.

Growing your export markets

In brief: CanExport SMEs remains the main federal program for prospecting new markets, with specific criteria.

According to the CanExport SMEs 2026–2027 applicant guide, the company must have between 3 and 500 full-time employees and report annual revenue of $300,000 to $100M in Canada. Sole proprietorships are not eligible.

The program funds up to 50% of eligible costs, for assistance of $10,000 to $50,000 per project. A company can have only one active CanExport SMEs project at a time, and a project targeting the United States cannot include any other market. For 2026–2027, the total envelope is about $31M, including about $3.1M for projects targeting the United States.

Agri-food companies now fall under the Agri-marketing program for SMEs. The guide to export grants in Quebec outlines complementary provincial options.

Training and hiring staff

In brief: Workforce measures fall mainly under Services Québec and vary by region and by the profile of the people targeted.

An SME that trains its teams or recruits hard-to-find profiles may receive assistance for part of the costs. A company rolling out new management software, for example, should check the available training measures before the sessions begin.

Conditions vary from one measure to another, which is why it is worth reading the guide to employee training grants and the overview of hiring grants in Quebec.

Improving your chances of getting a grant

Refusals often have more to do with failing to follow administrative rules than with the quality of the project.

• Plan before you spend: CanExport SMEs, like several programs, refuses costs incurred before the application is filed.
• Respect stacking limits: under CanExport SMEs, total government assistance cannot exceed 75% of the project cost.
• Document continuously: for SR&ED, contemporaneous evidence of hypotheses, tests and results strengthens the claim.
• Watch the envelopes: some programs close as soon as funds run out, like MAPAQ’s Food Processing Program in August 2026.
• Look after your financial health: the applicant’s financial viability is part of the criteria for many grant programs.

Putting the odds in your favour with SME grants in Quebec

Tax credits are claimed every year, whereas SME grants in Quebec open and close with the pace of their envelopes. An SME that lists its projects for the year and then matches them to the right programs can plan its applications instead of improvising them.

To sort through this and prioritize the programs that fit your situation, book a consultation with a grants advisor.

FAQ

Can I stack SME grants in Quebec and tax credits?

Yes, in many cases, but stacking has direct effects on the calculation. Assistance obtained through SME grants in Quebec may reduce the base of a tax credit such as the C3i or SR&ED when it relates to the same expenditure or property. Some programs also cap total public assistance. Under CanExport SMEs, it cannot exceed 75% of the project cost.

Is the SR&ED tax credit reserved for tech companies?

No. SR&ED is open to Canadian businesses of all sizes and in all sectors that carry out research or experimental development work. A manufacturer developing a new process or a food processor resolving a technological uncertainty may be eligible. Eligibility depends on the nature of the work and its documentation, regardless of the company’s industry.

How do I know which grants my SME is eligible for?

Start by defining the need to be funded, then check the basic criteria: size, revenue, sector, region and project start date. The programs’ official pages and the federal government’s business funding search tool on the Innovation Canada site allow for a first sort. A specialized advisor can then confirm eligibility and identify possible stacking between programs.