The COVID-19 pandemic has transformed the way we do business. From now on, to ensure its durability, any company or organization must not only be present on the Web, but must also be equipped with the tools necessary for its productivity.
That you are still reluctant to launch yourself in this new economy because the project intimidates you is quite normal. That’s why our company exists: we accompany small and medium-sized businesses step by step in this great adventure of new technologies and information technology to enable them to increase their productivity, their competitiveness and their performance. Of course, this transformation has a price. However, there are several programs, subsidies and credits to help you follow the digital shift without losing your shirt. We have put them together for you.
Provincial tax credits and programs
Investment and Innovation Tax Credit (C3i)
On March 25, the Quebec Minister of Finance, Éric Girard, announced in his 2021-2022 budget that he was doubling the investment and innovation tax credit to encourage SMEs in all sectors to innovate and embrace the digital shift. This measure, aimed in particular at encouraging the local economy, will benefit more than 10,000 Quebec SMEs.
Tax credit rate
20% for investments made in the metropolitan communities of Montréal and Québec City (high economic vitality);
40% for investments made in areas with low economic vitality
30% for investments made in another territory or region (intermediate zone).
Click here for more details.
E-Business Development Tax Credit
This tax measure aims to consolidate the development of information technology (IT) throughout Quebec. It allows specialized businesses that carry out innovative, high value-added activities, mainly in the areas of computer systems design and software publishing, to obtain a tax credit of up to $25,000 per eligible employee. This credit also aims to maintain and create IT jobs, while supporting the growth of Quebec businesses in all sectors of activity that want to improve their efficiency and productivity by integrating IT developed by specialized companies into their business processes.
Tax credit rate
Refundable credit of 24%, which cannot exceed $20,000 per employee annually;
6% non-refundable credit, which cannot exceed $5,000 per employee annually.
Credit calculated based on salary and corporate eligibility up to an annual salary of $83,333 per eligible employee.
Find out if your company is eligible for the tax credit by clicking here.
ESSOR Program
The ESSOR program, jointly administered by Investissement Québec and the Ministère de l’Économie et de l’Innovation (MEI), supports investment projects carried out in Québec with a view to increasing competitiveness and productivity, supporting digital projects, creating jobs and promoting sustainable development. The following types of assistance are available: repayable contribution, loan guarantee, equity investment and non-repayable contribution.
Financing characteristics
Financial assistance of up to 15% to 25% of eligible expenses, depending on the nature of the project and the business sector. The maximum duration of the financing is 10 years and it is possible to obtain a delay in the reimbursement of the capital.
The following types of assistance are available:
Repayable contribution (preferred at any time);
Loan guarantee (repayment guarantee of up to 70% of the net loss incurred by the financial institution granting you the financial assistance)
Equity investment (under certain conditions);
Non-repayable contribution (granted exceptionally and with justification).
You will find all the information concerning this program by clicking here.
Industry 4.0
The Industry 4.0 Audit program, presented in two parts, aims to encourage as many Quebec companies as possible to make the digital shift. First, a diagnosis and a digital plan are carried out, followed by a structured approach aimed at selecting solutions and planning the management of change in relation to the prioritized digital projects.
Financial assistance
Component 1: Completion of a diagnosis and digital plan
Maximum amount of assistance: $20,000
Cannot exceed 6 months from the date of authorization until the report is submitted.
Component 2: Implementation plan
Maximum amount of assistance: $10,000
Cannot exceed 6 months from the date of authorization until the submission of the related report.
For the realization of each component of the Industry 4.0 Audit program, financial assistance is granted only once for the duration of the program.
For more information, click here.
The CQCD digital turnaround
The Conseil québécois du commerce de détail (CQCD) helps retailers migrate smoothly to online transactional sales.
Features of the assistance
This measure does not offer money, but rather coaching, mentoring and webinars to facilitate the digital shift of retail businesses.
For full details, click here.
SME in action
Aimed at for-profit organizations, the SME in Action program is designed to increase the productivity level of Quebec businesses in order to enhance their competitiveness and accelerate their growth.
Financial assistance
Non-repayable contribution of up to 40% of eligible project expenses, to a maximum of $50,000 per project.
The cumulative rate of government financial assistance for a project cannot exceed 50% of total project expenses.
All information on the program is available by clicking here.
Export Program (PEX)
The PEX program is intended for Quebec companies that want to be better prepared to export or to strengthen their capacity to export and to consolidate and diversify their markets outside Quebec.
Characteristics of the financial assistance
Non-repayable contribution of up to 40% of eligible expenses, to a maximum of $80,000 over a maximum period of 12 months.
The cumulative rate of government financial assistance for a project cannot exceed 50% of total project expenses.
Assistance for travel and accommodation expenses outside Quebec for company employees, granted in a lump sum, up to 10 trips per person per year. A trip corresponds to a round trip from Quebec, regardless of the duration of the stay and stopovers.
For more information, click here.
Productivity Innovation
Chaperoned by Investissement Québec, the Productivity Innovation program aims to boost the competitiveness and accelerate the growth of Québec companies by focusing on innovation in all its forms and on technologies and processes such as automation, digitization, robotization and artificial intelligence applications.
Financial assistance
Term loan of $50,000 or more that can finance 100% of the project with a capital repayment moratorium of up to 48 months.
To find out if your company is eligible, please click here.
Emploi Québec’s Workforce Training Measure
This program was set up to support the development of skills of people at risk of losing their jobs. It also helps maintain the expertise in place within Quebec companies.
Financial assistance
Assistance can reach up to 50% of eligible expenses for the training measure.
To benefit from this measure or to find out more, click here.
Other financial assistance programs and services offered by Culture et Communications Québec
For a list of these programs and services, please visit the Ministry’s website by clicking here.
BAnQ
The Bibliothèque et Archives nationales du Québec’s directory lists more than 2,000 financial assistance programs offered by the provincial and federal governments, associations or foundations, and which are intended for organizations and businesses.
Click here to access the directory.
130 million budget envelope for the digital transition
On March 29, the Minister of the Economy, Pierre Fitzgibbon, announced a budgetary envelope of $130 million to support SMEs in their digital transformation. The two strategic partners in charge of this support are Inno-centre, whose initiative is aimed at evaluating and developing business strategies and digital transformation approaches, and the BIM Group, which mainly supports businesses operating in the construction sector. Thus, by March 31, 2022, Quebec is committed to paying half of the bill.
Tax credits and federal programs
Regional Economic Growth through Innovation (CERI)
With its CERI program, Canada Economic Development for Quebec Regions supports Quebec businesses in adopting, adapting and commercializing technologies to improve their productivity, accelerate their growth and enhance their competitiveness in all markets.
Types of assistance
Repayable contribution covering up to 50% of authorized costs for SMEs.
Non-repayable contribution of up to 90% of eligible costs for not-for-profit projects.
For more details on the program application process, click here.
Financial support, loans and access to credit related to COVID-19
The federal government is supporting businesses facing challenges due to the COVID-19 pandemic. Among the assistance measures in place, several can propel your business through the digital shift.
For a complete list of federal programs for businesses, click here.
https://staging.aikitech.ca/wp-content/uploads/2020/07/pexels-olya-kobruseva-7247408-684×1024-1-1.jpg will accompany you throughout the process.
Our team of IT management and programming experts offers a turnkey service to help Quebec SMEs make the digital shift. Contact us now so that we can evaluate your company’s needs: Contact Us
