Canadian SMEs are now at a state of corporate culture where almost every business must possess some type of hardware and software relating to Information and Communications Technologies (ICT). However, the constant development of new technologies causes businesses to have to compete with one another by investing in new information technologies and software systems that are designed to improve the efficiencies of their communication and reporting processes. The Canadian Government offers a wide variety of business funding grants and financing programs to assist Canadian SMEs with their IT expenditures.
One of the Canadian government grants for IT financing is provided by the Business Development Bank of Canada (BDC). Their new Small Business Financing Program for ICT expenditures will provide a short-term $50K loan with a 4-year repayment period at an interest rate of prime + 1% (currently 6%). The capital acquired from this loan can only be invested in ICT Consulting or Technologies. Unlike other BDC finance agreements, these conditions do not require a personal guarantee and have no additional fees on top of the interest rate and principle amount. This program would provide a perfect financing opportunity to get your IT project off the ground.
Proper Applications of Ontario Business Loans
One of the ways Canadian SMEs are choosing to apply their acquired capital is through the hiring of IT Consultants who would set out a professional IT plan and strategy. The remainder of the funds could then be put towards the purchasing or upgrading of the necessary IT Software and Hardware required by the strategy. When applied correctly, these strategies could be used to improve a business’s process orders or forecast demand and manage inventory to meet the variable demand of their clientele. IT software can also be used to organize and increase the transparency of financial records for revenue agencies and upper management. ICT strategies can be an extremely effective method to streamlining processes and modernizing communication and reporting techniques to increase the efficiency of a business.
Applying Grant Funding for Business
There are many other costs associated with IT strategies that would not be applicable to the ICT loan. Some of the major costs would include the training costs associated with the new software as well as the adaptation and customization of the software to improve its optimization of your business processes. Luckily, there are some Canadian business funding grants that would apply for these costs:
- IRAP – Digital Technology Adoption Pilot Program (DTAPP)
- Yves Landry Foundation – AIME Global for Training
- IRAP – Accelerated Review Process
Some of these Canadian Government grants will not be eligible for stacking with one another. However, companies who are considering a project involving an upgrade or acquisition of new IT software should determine which of these Canadian business grants would best fit their needs before they begin their applications.
Businesses who are interested in applying for this ICT Finance program should start by filling out the BDC Online Application Form. For more information on Canadian Government grants for IT projects or any other Canadian Government Funding Mechanism, please contact one of our Government Funding Experts or subscribe to our E-Newsletter located on the right-hand side of this page.