Critical financial support: Subsidies and tax credits for implementing your CRM and ERP

Are you part of a company that is hesitating to embrace digital transformation? Is your reluctance to embark on this adventure related to your budget or your lack of familiarity with digital tools?

If so, this blog can help you kickstart your digital transformation journey. Although there are other types of subsidies and programs to help you in this process, you will find some very attractive options detailed below.

Before writing this blog, not only did we review the information on their website, but we also spoke with them to make sure we understood the application process for these programs. It’s important to note that you can take advantage of multiple programs. It’s not a matter of simply choosing one or the other—you need to instead consider which ones you are eligible for.

Summary :

Subsides from the Ministry of Economy and Innovation :

• PME en action from the Ministry of Economy and Innovation (MEI)
• Audit industrie 4.0 from the Ministry of Economy and Innovation (MEI)
• Programme Exportation (PEX) from the Ministry of Economy and Innovation (MEI)
• ESSOR from the Ministry of Economy and Innovation (MEI)

Others Subsidies available :

• Productivity Innovation from Investissement Québec
• Tax Credit for the Integration of IT in SMBs
• Mesure de formation de la main‑d’œuvre from Emploi Québec
• CANExport from the Canadian government
• Regional economic growth through innovation (REGI) from Canada Economic Development for Quebec Regions

PME en action from the Ministry of Economy and Innovation (MEI)

Description of the PME en action subsidy

This component aims to boost the productivity of Quebec businesses to strengthen their competitiveness and accelerate their growth. The MEI is mandated to help businesses expand and adapt to changing market conditions. We therefore suggest that you contact them before officially starting your project, as they can support you and your business in implementing your digital transformation.

Benefits of the PME en action subsidy

The PME en action subsidy provides a non-repayable contribution of up to 40% of your eligible project expenses up to a maximum of $50,000 per project.

The cumulative rate of government funding for a project may not exceed 50% of total project expenses. Expenses related to software or application licence fees are not eligible for the subsidy, which only covers service fees for installing these solutions.

Eligibility criteria for the PME en action subsidy

Eligible businesses

The program is for for-profit businesses established in Quebec, including cooperatives and social economy enterprises with marketing activities in the following sectors:

- Manufacturing

- Propulsive service industries, which include high value-added businesses that significantly contribute to the production of goods or use new technologies. Eligible businesses usually operate in the following sectors:

• IT and communications
• Environmental services
• Creative and industrial design services
• Industrial and scientific laboratories
• Private research services
• Value-added distribution centres

Businesses in all other sectors and those majority owned by a Crown corporation are ineligible.

Priority is given to qualified businesses as part of a performance-based strategy.

Eligible projects

Projects focused on implementing precise measures as part of an action plan agreed upon by the business and the Ministry. These projects aim to put in place targeted business practices to significantly boost the business’ productivity. Eligible projects include:

• Supply chain optimization
• Implementation of an enterprise resource planning (ERP) or customer relationship management (CRM) system—Gestisoft’s area of expertise
• Bring your operations into compliance with international production standards
• Implementation of a cost accounting system

The following projects are ineligible for the PME en action subsidy:

• Activities related to human resources functions
• Activities related to market development

The project must be carried out within a maximum continuous timeframe of 12 months.

How to apply for the PME en action subsidy

For more information, or to begin a structured application process, contact your local regional office [French only]. The MEI has staff in each region.

To learn more [French only]: www.economie.gouv.qc.ca.

Audit industrie 4.0 from the Ministry of Economy and Innovation (MEI)

Description of the Audit industrie 4.0 subsidy

The Audit industrie 4.0 subsidy supports a wide range of Quebec businesses in their digital transformation. This includes performing an assessment, creating a digital plan and implementing a structured process to choose solutions and prepare for change management related to prioritized digital projects.

• With the assessment and digital plan, you will confirm strategic and operational direction, determine business processes, analyze the business’ digital maturity and put together a report based on these elements.
• You will design an implementation plan to choose the right solutions and plan change management based on your needs. Businesses can prioritize digital projects, adapt as needed, draw up specifications for required digital solutions and prepare a functional and financial analysis of targeted solutions. Finally, this audit will help you organize your human and operational resources in preparation for integrating future digital solutions.

Benefits of the Audit industrie 4.0 subsidy

A contribution of $20,000 is allocated for the duration of the program to performing an assessment and creating a digital plan. $10,000 is allocated for the duration of the program to your implementation plan.

Financial assistance for carrying out each element of the Audit industrie 4.0 is provided in the form of one single contribution for the entire duration of the program.

Eligibility criteria for the Audit industrie 4.0 subsidy

Eligible businesses

Businesses in all sectors are eligible, including cooperatives and social economy enterprises.

However, businesses wishing to take advantage of the Audit industrie 4.0 program must have already:

• carried out strategic planning to define their mission, vision and strategic and operational direction
• taken the Autodiagnostic ADN 4.0 questionnaire

Eligible projects

The Audit industrie 4.0 program supports the integration of digital solutions (software packages and programs). If you are seeking to set up an enterprise resource planning (ERP) or customer relationship management (CRM) system, or a graphic design, marketing or email tool, etc., you can take advantage of this program to help you identify your needs, priorities and required resources.

How to apply for the Audit industrie 4.0 subsidy

For more information, or to begin a structured application process, please contact your regional office. You will need to take the Autodiagnostic numérique ADN 4.0 questionnaire before applying for assistance. You can do this at the following link: clicSÉQUR – Entreprises : demande d’aide financière en ligne [French only].

To learn more [French only]: www.economie.gouv.qc.ca.

Programme Exportation (PEX) from the Ministry of Economy and Innovation (MEI)

Description of the PEX subsidy

PEX is for Quebec business that wish to be better prepared to export or to strengthen their capacity to export their products, services or merchandise outside of the province of Quebec. It is also intended for businesses that want to consolidate and diversify their markets outside of Quebec.

Benefits of the PEX subsidy

PEX offers a non-repayable contribution of up to 40% of eligible expenses up to $80,000 over a maximum period of 12 months. Total government assistance shall not exceed 50% of total project expenses.

PEX also offers assistance with trip and travelling expenses outside of Quebec for the business’ employees in the form of a lump sum payment for up to 10 people/trips (lump sum payments) per year. A trip consists of a round trip from Quebec, regardless of the trip length or stops made.

Eligibility criteria for the PEX subsidy

Eligible businesses

For-profit business that are legally incorporated in Quebec or in Canada and are established in Quebec. This includes social economy enterprises and non-financial cooperatives.

Businesses operating in one of the following sectors:

- Manufacturing

- Retail and wholesale – distribution (if they carry out value-added operations both pre-production [product development] and post-production [purchases, commercialization, marketing and distribution] and are based in Quebec)

- Propulsive service industries (if they have high value-added operations that significantly contribute to the production of goods or use new technologies). Eligible businesses mainly include the following:

• Software designers and editors
• Special visual effects studios and animation studios
• Value-added data centres
• Customer relations centres
• Environmental service providers
• Creative and industrial design service providers
• Industrial and scientific laboratories
• Private research centres

Eligible projects

A business project must include eligible expenses totalling at least $15,000 in order to be assessed by the Ministry. Expenses directly related to carrying out the project must have been incurred after the date when the request was submitted to the Ministry to be considered eligible for the purposes of calculating the amount of financial assistance.

PEX is intended for designing tools such as websites, brochures and social media accounts, but not for managing or developing these tools. Assistance with expenses related to accessing an online sales platform (an e-commerce website) is limited to $10,000 per platform.

Expenses may be taken into consideration by a consulting agency or firm, which requires that you include an hourly rate in your application for PEX.

How to apply for the PEX subsidy

For more information, or to begin a structured application process, simply sign up for the ClicSÉQUR portal [French only].

To learn more [French only]: www.economie.gouv.qc.ca.

ESSOR from the Ministry of Economy and Innovation (MEI)

Description of the ESSOR subsidy

The ESSOR program supports investment projects carried out in Quebec with a variety of goals: boosting competitiveness and productivity, supporting digital projects, creating jobs and promoting sustainable development.

Benefits of the ESSOR subsidy

The ESSOR program offers financial assistance of up to a maximum of 15% or 25% of eligible expenses, depending on the type of project and the industry in which the business operates. The following types of assistance are offered:

• Repayable contribution (preferred form of assistance)
• Loan guarantee
• Equity investment
• Non-repayable contribution

Eligibility criteria for the ESSOR subsidy

Eligible businesses

This program is for for-profit businesses, including cooperatives and social economy enterprises with marketing activities, in the following eligible sectors:

- Manufacturing

- Propulsive service industries, which include high value-added businesses that significantly contribute to the production of goods or use new technologies. Eligible businesses usually operate in the following sectors:

• Software editing
• Special visual effects studios and animation studios
• Value-added data centres
• Customer relations centres
• Environmental services
• Creative and industrial design services
• Industrial and scientific laboratories
• Private research centres
• Value-added distribution centres
• Tourism accommodations (under certain conditions)

Newly eligible clients

• Retail and wholesale businesses – distributors with value-added operations

Eligible projects

• Investment projects involving eligible expenses of at least $250,000 that aim to create a new business or expand (or modernize) an existing one
• Innovative investment projects carried out by a manufacturing business involving eligible expenses of at least $100,000
• Digital projects pertaining to the acquisition of equipment and software, such as ERP or CRM software, by retail or wholesale businesses – distributors (with value-added operations) that involve eligible expenses of at least $250,000

How to apply for the ESSOR subsidy

For more information, or to begin a structured application process, contact the regional Ministry office [French only] nearest you.

To learn more [French only]: www.economie.gouv.qc.ca.

Productivity Innovation from Investissement Québec

Description of the Productivity Innovation subsidy

Investissement Québec’s Productivity Innovation program aims to help Quebec businesses boost their competitiveness and accelerate their growth through greater productivity and innovation. Its goal is to encourage more businesses to take concrete steps to leverage innovation in all its forms and adopt technologies and processes such as automation, digitization, robotization and artificial intelligence.

Benefits of the Productivity Innovation subsidy

The Productivity Innovation program offers loans of $50,000 or more. This assistance can fund up to 100% of your projects. The program is tailored to your needs and offers favourable terms, including a deferral of principal repayment for up to 48 months.

Eligibility criteria for the Productivity Innovation subsidy

Eligible businesses

Productivity Innovation is for Quebec business operating in a variety of sectors:

• Mining
• Construction
• Wholesale
• Retail
• Transport and storage
• Professional services
• Scientific and technical services
• Waste management and sanitation

Eligible projects

This program includes working capital and capital assets that are part of innovative projects that demonstrate an ability to increase business productivity. Innovation projects may involve a product, a process, commercialization efforts or organizational processes, for example, the deployment of a software package (ERP) or management software (CRM).

How to apply for the Productivity Innovation subsidy

For more information, or to begin a structured application process, contact Investissement Québec [French only] to request an assessment of your application.

To learn more: www.investquebec.com.

Tax Credit for the Integration of IT in SMBs

Description of the Tax Credit for the Integration of IT in SMBs

This tax measure is designed to promote the integration of IT into the business processes of Quebec SMBs. It helps corporations that have acquired manufacturing or processing equipment, IT equipment or certain software packages between March 10, 2020 and 2025, to obtain a refundable tax credit.

Benefits of the Tax Credit for the Integration of IT in SMBs

The Tax Credit is intended to reduce a corporation’s total taxes due for a taxation year; this includes:

• Income tax
• Compensation tax for financial institutions
• Capital tax for insurance companies
• Capital tax for life insurance providers

This is a refundable tax credit equal to 20% of eligible expenses related to a qualified IT integration contract. The total amount of this credit is limited to $50,000 for the duration of the credit.

The tax credit is reduced linearly where the paid-up capital of the corporation and any associated corporations exceeds $35 million but is less than $50 million. The corporation may not receive the tax credit if its paid-up capital reaches $50 million or more.

Eligibility criteria for the Tax Credit for the Integration of IT in SMBs

Eligible businesses

Any business established in Quebec with more than 50% of its operations in one of the following sectors:

• Primary sector (NAICS 11-21)
• Manufacturing sector (NAICS 31-33)
• Wholesale (NAICS 41)
• Retail (NAICS 44-45)

Eligible projects

It is important to perform an assessment before getting started to demonstrate that the project is related to a preliminary analysis. This must be done by the corporation or partnership, or on its behalf, to set out a plan describing its needs to gain access to a computer systems infrastructure allowing for the use of a management software package to optimize its business processes.

The IT integration contract must be entered into with a person at arm’s length from the corporation or partnership. Under the contract, this person undertakes to supply a qualified management software package themselves.

The Tax Credit supports all businesses with purchasing or leasing a management software package or an open-source management software package, as well as with consulting services related to software packages including:

• Enterprise resource planning software packages (ERP)
• Customer relationship management software packages (CRM)
• Supply chain management software packages (SCM)
• The delivery of services related to the development, integration (installation and implementation), reconfiguration and evolution of a software package
• The delivery of services required to support and train the business’ personnel and resolve bugs related to the software’s integration
• The sale or lease of general-purpose electronic data processing equipment and associated system software, including ancillary data processing equipment

How to apply for the Tax Credit for the Integration of IT in SMBs

For more information, or to begin a structured application process, contact Investissement Québec to request an assessment of your application. There is a $631 fee for performing an eligibility assessment.

To learn more: see Investissement Québec’s detailed documentation.

Mesure de formation de la main‑d’œuvre from Emploi Québec

Description of the Mesure de formation de la main-d’œuvre

The Mesure de formation de la main-d’œuvre for businesses aims to provide skill development support to individuals at risk of losing their job or to employees seeking to maintain their skills.

Benefits of the Mesure de formation de la main-d’œuvre

This program provides businesses with technical or financial assistance to:

• Identify training needs
• Carry out training
• Assess the effectiveness of the training received

This program is subsidized by the Fonds de développement du marché du travail.

Eligibility criteria for the Mesure de formation de la main-d’œuvre

Eligible businesses

All employers located in Quebec may participate in this program, with the exception of public bodies and political organizations. Eligible entities include:

• private businesses
• private business groups
• cooperatives
• non-profit organizations
• municipalities
• freelancers
• collectives and band councils

Eligible projects

You must demonstrate that the training activity:

• keeps individuals employed
• improves your employees’ performance
• is transferable to your other personnel to increase mobility within your business

The timeframe depends on the training plan. If you wish to train your co-workers to master a CRM or ERP or use it more effectively, or to train them in any other related subject, you can request assistance from Emploi Québec.

How to apply for the Mesure de formation de la main‑d’œuvre

For more information, or to begin a structured application process, contact your local employment centre (CLE) or the Services Québec office for your region.

To learn more [French only]: www.emploiquebec.gouv.qc.ca.

CANExport from the Canadian government

Description of CANExport

CANExport provides financial assistance to support the expansion of international markets by carrying out commercialization and export operations outside of Canada.

Benefits of CANExport

CANExport provides financial assistance via cost sharing between the recipient and CanExport SME. The applicant can present a budget from $20,000 to $100,000.

The program provides financial assistance covering up to 75% of eligible costs, or $15,000-$75,000 in funding per project. The applicant is responsible for 25% of project costs (cash contributions are not accepted).

Eligibility criteria for CANExport

Eligible businesses

Canadian SMEs that meet the following criteria:

• Be a for-profit business
• Be an incorporated legal entity or a limited liability partnership (LLP)
• Have a business number from the Canadian Revenue Agency
• Have a maximum of 500 full-time equivalent employees
• Have declared $100,000 to $100 million in revenue in Canada for the previous fiscal year (or 12 months for quarterly returns)

Eligible projects

Expert advice for digital and e-commerce marketing is eligible for funding through the CANExport program.

Maximum funding for online advertising activities, including search engine optimization (SEO) is $50,000 per project. The program now includes online advertising on social media platforms, online marketplaces and search engines.

How to apply for CANExport

For more information, or to begin a structured application process, go to the government website.

To learn more: https://www.tradecommissioner.gc.ca/funding-financement/canexport/sme-pme/applicant-guide-requerant.aspx?lang=eng

Regional economic growth through innovation (REGI) from Canada Economic Development for Quebec Regions

Description of REGI

The REGI program promotes the economic growth of businesses and regions through innovation. It supports projects that help businesses to adopt technologies that will improve/increase their growth, productivity and competitiveness.

Benefits of REGI

The REGI program provides financial assistance consisting of repayable contributions covering up to 50% of authorized costs for SMEs and non-repayable contributions covering up to 90% of authorized costs for non-profit projects.