ERP Funding for Canadian Businesses

Carly Caines October 22, 2024

We know that implementing a new ERP system is a significant investment! Along with the software purchase and implementation costs, you’ll also need to consider the time and effort your team will spend selecting the right ERP, adjusting processes and learning the new system.

   How much does ERP cost?

There are many factors that affect the cost of an ERP. Some things to consider are the size of your business, the complexity of your processes and the features you need. Read the full ERP pricing explanation ›

Some companies find themselves in a catch-22: they know they need ERP software to improve business performance and continue growing, but they don’t have the cash on hand to make it happen. Maybe this sounds familiar?

Luckily, the Canadian government has several grants and loan programs available to help small to mid-size businesses adopt new technology, with the goal of being more competitive in the market. Keep reading for details on the ERP funding available and how they can help you on your ERP implementation journey.

 

Get the Complete ERP Selection Guide for SMEs →

Funding for ERP Assessment and Implementation

1. National Research Council of Canada Industrial Research Assistance Program (NRC IRAP)

NRC IRAP offers multiple programs to help small and mid-size enterprises (SMEs) solve internal innovation challenges. For ERP projects, The Digital Technology Adoption Program provides funds to cover labour and sub-contractor costs associated with technical and business innovation projects.

Funding available: Grants cover 80% of direct labour costs and 75% of sub-contractor fees, capped at $100,000.

Who’s eligible: Canadian for-profit SMEs that are incorporated, have less than 500 full-time employees and a plan to pursue growth.

What to consider: NRC IRAP runs Canada-wide from April 1 to March 31, so keep those dates in mind as you plan the timing of your ERP project. To apply, be prepared with a business plan, company financials, and resumes of key team members.

2. Canada Small Business Financing Program (CSBFP)

The Canada Small Business Financing Program is a government-backed program that offers SMEs low-interest loans to support business improvement initiatives, including ERP software.

Funding available: You can apply for up to $1.15 million in funding, with a maximum of $1,000,000 available for term loans. Up to $150,000 can be allocated for intangible assets and working capital. Additionally, up to $150,000 is available for lines of credit.

Who’s eligible: Small businesses or start-ups operating in Canada with gross annual revenues of $10 million or less. Farm businesses aren’t eligible under this program.

What to consider: Authorized financial institutions will approve and deliver the loans at their determined interest rates, which can be variable or fixed. You’ll also be charged a 2% registration fee that can be financed as part of the loan.

3. Advanced Manufacturing and Innovation Competitiveness (AMIC)

The AMIC program provide financial support to advanced manufacturing SMEs across Ontario for capital equipment, technology adoption and skills development. Priority is given to projects that create jobs, help companies leverage new technology to further business growth and improve competitiveness.

Funding available: Projects can receive ERP funding up to 15% of eligible costs. Interest-free loans up to 15% of funding (max of $5 million) are also available during the project period, up to 4 years. The program also offers advisory services to support skills and talent, health and safety and environmental plans. If you achieve your investment and job or upskilling targets, up to 30% of the loan (to a maximum of $500,000) may be forgiven.

Who’s eligible: Ontario-based advanced manufacturing companies, with 10 or more employees and at least 3 years of financial statements. Companies must commit to invest at least $500,000 in their project and create or upskill 5 jobs.

What to consider: There are two application periods each year, with the first period opening in early 2025.

4. Ontario Automotive Modernization Program (O-AMP)

The Ontario Automotive Modernization Program is designed to support small and mid-size automotive parts suppliers in Ontario become more competitive and responsive to changing customer needs. Eligible projects include implementing advanced manufacturing software (like ERP) and training to improve processes and competitiveness.

Funding available: Up to 50% of eligible project costs, with a maximum of $150,000. Your business must contribute at least 50% of the project costs through your own funding.

Who’s eligible: Small and mid-size businesses in the automotive supply chain with a manufacturing location in Ontario. Eligible companies must have less than 500 employees and less than $1 billion in global revenue.

What to consider: At least 50% of your total revenue must come from the auto supply sector and your project must align with O-MAP’s goals (e.g. increased revenue, lower costs).

5. Southern Ontario Business Scale-up and Productivity (BSP)

The FedDev Business Scale-up and Productivity program helps businesses in southern Ontario adopt new technologies that support productivity and increase exports to global markets.

Funding available: Zero-interest repayable contributions, from $125,000 to $10 million per project.

Who’s eligible: Businesses in southern Ontario with at least 5 full-time employees. Companies must have at least 65% of the project funding secured and have the financial capacity to complete the project and repay the contribution.

What to consider: The program’s next application period is set for winter 2025.

6. Northern Ontario Business Scale-up and Productivity (BSP)

The FedNor Business Scale-up and Productivity stream aims to accelerate business growth for northern Ontario companies through the adoption of new technologies that support productivity and expansion.

Funding available: Investments up to $500,000 per project, covering 50% of eligible costs. Repayment terms are determined on a case-by-case basis.

Who’s eligible: For-profit and non-profit organizations with a minimum of 2 years in operation and potential for market growth benefiting northern Ontario. Companies must have the financial capacity to complete the project, as well as the managerial, technical and operational capacity to achieve the project’s objectives. Indigenous businesses are also eligible.

What to consider: Funding amounts are determined based on the minimum amount for the project to proceed, the applicant’s ability to repay and the extent to which other sources of funding have been leveraged.

ERP Funding for Training

7. Canada Job Grant (CJG)

The Canada Job Grant is a federally supported initiative with individual programs in each province. Depending what province you’re in, the grant can cover 50% —100% of eligible training costs for your ERP implementation.

ERP funding available:

  • BC Employer Training Grant: Employers can receive up to $300,000 per year under the program (April 1 to March 31).
    • The Workforce Training Stream covers 60% of training costs, to a maximum of $5,000 per person, for training that aligns with the employer and employee needs.
    • The Technical Training Stream covers 80% of training costs, up to $10,000 per person, to help employees learn new technical skills in response to automation and other tech advancements.
  • Canada-Alberta Job Grant: Reimbursements for two-thirds of eligible training, up to $10,000 per individual and a max of $300,000 per fiscal year. Application period opens on March 31st, 2025.
  • Canada-Saskatchewan Job Grant: Reimbursements for two-thirds of eligible training, up to $10,000 per individual and a max of $100,000 per fiscal year.
  • Canada-Ontario Job Grant: Reimbursement up to $10,000 per person, with employers contributing one-sixth of the training costs if they have less than 100 employees. Companies with more than 100 employees must contribute half of the training costs.

What to consider: This grant is intended to help businesses train new or existing employees with the goal of reducing skills gaps and creating opportunities for employment or advancement. Existing training programs aren’t eligible. Keep in mind the eligibility requirements and training qualifications vary by province, so check the guidelines carefully before submitting your application.

Other ERP Funding Methods

As you can see, there are many options available to help you pay for your ERP implementation. But securing government funding requires a significant time investment. If you don’t want to go down that route, but could still use some help funding your project, talk to your ERP implementation partner about other financing options. Some ERP vendors (like NetSuite) offer financing at low interest rates and leasing can be a viable option for the right company as well.

The takeaway is this – implementing ERP will improve your financial performance in the long-run, so don’t wait. There are financing options available to help you see results faster.

Interested in chatting more about your ERP options? Connect with our team today.

 

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