Government Grants and Financing for Business

Whether your business is a start-up, or an established business looking to grow, there are a wide research and development government financingrange of government grants and financing available in Canada.  The following is a comprehensive list to get your research started.

One funding model to highlight is the Scientific Research and Experimental Development tax credit (SR&ED).  Quite simply, it is one of the most robust models which supports innovation for the following reasons:

  • over $3.47 billion paid out in 2015
  • the definition of research and development is broad
  • spans a wide range of activities and industries

Who is Eligible for R&D funding?

Almost any Canadian company can be eligible to apply for Scientific Research and Experimental Development (SR&ED).  According to published survey results by Canada Revenue Agency, approximately three-quarters of companies that apply to the program report annual revenue of $50 million or less – and there is no specific industry that this funding is limited to.

The definition of technological advancements can be interpreted broadly and therefore is not limited to specific industries.  Generally a wide range of industries claim SR&ED, including:

What many businesses don’t realize is that some of the routine business challenges they face each year could be eligible for the SR&ED tax credit.  For example:

  • A cached turn-by-turn GPS navigation was created to solve drivers’ difficulty of navigating roads outside of cell phone service range
  • A manufacturing company, who makes complex medical devices, wanted to speed up their line to reduce the per item completion time.
  • A pharmaceutical company develops a new lightweight casing for medicinal capsules but discovers over time that it is not leak-proof and so can’t be used (note: unsuccessful R&D projects are still eligible for the SR&ED tax credit)
  • An engineering and manufacturing company develops and modifies plastic molding technology so that it can protect testing components from the hostile oil and gas field environments.

All these activities, and many more business processes like them, result in knowledge improvement for the company and its staff and hence are recognized as SR&ED by the government and are eligible for an SR&ED tax credit.

Many Canadian corporations in your industry, including your competitors, have received SR&ED funds to develop additional R&D projects and build their knowledge base. For companies with annual revenue of $10 million or less, the vast majority credited the SR&ED program with improving their cash flow and profits.

A Comprehensive List of Government Funding

If SR&ED is not the right funding model for your business, Government departments and agencies provide a plethora of financing options such as grants, contributions, subsidies, and loan guarantees.

Find out what type of government financing may be available for your business.

Browse government financing by type

Explore opportunities to receive public funds to help springboard your business venture.

Examine these loans and other borrowing possibilities for your new or existing business.

Having trouble securing a loan for your business? A government-backed loan guarantee could help you attract creditors.

Looking for more return on your business expenditures? Browse potential tax benefits that could help reduce overhead.

Are high wage expectations making you reluctant to put up that Help Wanted sign? A wage subsidy program can put the perfect employee within your reach.

Searching for a long-term financial solution for your business? An equity investor may be willing to bank on your potential.

Contact us today for a free, no risk consultation!