Sherbrooke is well positioned economically, primarily because of its qualified, bilingual labour force, modern infrastructure and highly affordable energy sources. It has a range of business assistance programs providing both technical support and financial assistance.

There is a large tertiary sector (health care, social services and education) because this is the main urban centre in the region. In addition, the city’s economic structure is conducive to the development of an already-booming industrial sector.

Programs or Financial/Tax Incentives for Business

Fonds local d’investissement (FLI; Local Investment Funds)

• FLI is intended for start-up or expanding businesses in the manufacturing, tertiary industry, environmental or tourism sectors. It covers expenses involved in purchasing land, buildings or equipment, or acquiring technology.
• Type of financial assistance
  • Financial assistance is awarded in the form of a guaranteed loan covering up to 50% of eligible expenses, to a maximum of $50,000 a project. The interest rate cannot exceed the prime rate plus 1.75%, and the loan is reimbursable in monthly instalments over a maximum period of five years.

Fonds de développement industriel de Sherbrooke (FDIS)

• FDIS is intended for businesses in the agri-food and natural resources, manufacturing and tertiary sectors that generate significant economic benefits. Its objective is to attract such businesses to Sherbrooke and keep them there.
• Type of financial assistance
  • Financial assistance is awarded in the form of a non-reimbursable contribution of up to 15% of the cost of the project. The maximum contribution is $200,000. The project must be assessed at a minimum of $500,000.

Tax credit

• The tax credit is a total or partial property tax exemption for businesses wishing to build, add to or modernize a building. It applies to the manufacturing sector and some tertiary- industries (check eligibility with Innovation and Economic Development Sherbrooke).
• Type of financial assistance
  • For new-building construction, the credit applies for a period of 10 years. In Year 1, the total amount of the construction is eligible for a tax exemption; the amount paid the previous year, less 10%, is eligible in following years.
  • For building extensions, alterations or modernization, the credit is applicable for five years. In Year 1, it is equivalent to the difference between the construction value on completion of the renovation and its initial value. In each following year, 20% is deducted.

Hydro Sherbrooke rate rebates

• Businesses in the manufacturing sector and some tertiary industries receive rate rebates on electricity. Businesses wishing to receive such a rebate must have a contracted load in excess of 100 kW.
• Type of financial assistance
  • If the distributor is Hydro Sherbrooke, the rebates will be offered over a five-year period: 30% in the first two years and 5% less than the previous year for the following years.
  • If the distributor is Hydro-Québec, the rebates will be offered over a four-year period: 15% in the first two years, 10% in the following year and 5% in the final year.

Generous provincial or federal incentives

• Click on Business Support in the excel section of this portal for additional information on other incentives and links to related sites.