In order to sustain a thriving economy, the government of Canada continually invests in business growth and expansion through various direct and indirect sources of funding. Over the past five years approximately 35% of Canadian gross domestic expenditure on R&D was financed by both direct and indirect government funding initiatives. Although the majority of financing is in the form of indirect funding, such as the SR&ED tax credit program, the Canadian government has recently increased emphasis on direct government funding sources such as repayable and non-repayable grants. Direct and indirect funding sources can work together to provide solutions for business growth at various stages of advancement from product development to global market expansion, thereby, enabling businesses to continually improve and grow.
Large-scale business expansion projects may be eligible for direct funding in the form of a repayable, interest-free loan through the Investing in Business Growth and Prosperity (IBGP) program. The IBGP program helps established business with global market share potential and innovative prospects to increase competitiveness and growth as well as create jobs by supporting the implementation of new technologies/ processes in addition to expansion of existing markets and facilities.
After the expansion project is complete, eligible SR&ED expenditures related to experimental development can generate indirect funding via Investment Tax Credits (up to 35% of eligible expenditures for CCPC’s and 15% for foreign owned/ public corporations) for costs already incurred. This provides a source of annual funding or tax savings that can be re-invested into innovation and growth.
Various funding opportunities may be leveraged in conjunction to suit the specific objectives and needs of your company. Our NorthBridge team of business analysts can help identify eligible projects for both SR&ED and grant funding programs. We also assist with the completion of application information, the preparation of financial information, the creation of business plans, and the required reporting after application submission.