9 Best Tech Company Grants in Canada
Are you a tech entrepreneur, a business that invests in R&D, or a pure Canadian tech company? Regardless of your objectives, financing is crucial for tech companies in Canada. You need the money to afford staff, equipment, technologies, and day-to-day expenses.
Fortunately, there are billions of dollars in tech company grants in Canada. The government recognizes the need for Canada to have its homegrown tech research and innovation. They are willing to invest and help domestic small businesses and entrepreneurs along with their objectives in technology.
Here are nine tech company grants for Canadian companies:
1. SR&ED – Scientific Research & Experimental Development
SR&ED is Canada’s largest tax credit and technology grant. Billions of dollars are given out on SR&ED projects alone every year. The CRA runs this program and provides SR&ED incentives to projects targeting an investigation or search, using experiment or analysis, to advance science and technology.
Although the criteria are strict, an SR&ED investment tax credit can reduce a company’s tax payable by deducting up to 35% of eligible expenditures. If you are regularly invested in R&D, it is strongly recommended to look into applying for a SRED grant.
2. IRAP – Industrial Research Assistance Program
IRAP targets small-to-medium-sized businesses that are pursuing new technology. The financial assistance provided with IRAP includes two separate project grants for small and large research projects.
Small Technology Innovation Projects offer $50,000 grants and under to specifically fund R&D or commercialize existing technology projects.
Mid-Sized Technology Innovation Projects offer larger grants for larger projects specifically involving R&D or the creation of all-original software.
3. IRAP Youth Employment Program
Under the IRAP collection of grants, a specific grant worth talking about is the Youth Employment Program. This provides funding up to $30,000 per employee to hire post-secondary graduates to work on a company’s R&D for 6-12 months.
This is a small program that permits a maximum of two hires. Despite the limitations, the Youth Employment Program is another way to minimize their costs to cover and get the work they need in natural sciences and engineering research or product or process development.
4. SIF – Strategic Innovation Fund
SIF is a program that looks to help innovation by contributing to large collaborative projects valued at over $10 million. To qualify for the Strategic Innovation Fund, you must be working on something that advances Canada’s technological advantage, promotes clean growth, and encourages competitiveness in the global economy.
Qualifying companies can receive up to 50% of eligible project costs, helping with R&D and commercialization, growth and expansion of technology companies, attraction and retention of large-scale investment in Canada, or collaboration with academia, non-profit organizations, and the private sector.
5. SDTC – Sustainable Development Technology Canada
The SDTC grant is offered by a private institution and is backed by the government of Canada. The SDTC offers grants to tech start-ups and scale-ups with a proof-of-concept that haven’t commercialized their product or service yet.
It is designed to help spur investment in clean technology as these companies launch their products locally and internationally. SDTC is an equity-free grant of up to 40% of eligible project costs, with the average contribution being $3 million.
6. NPC Proof of Concept Program
The NPC Proof of Concept Program targets viable and innovative natural products and technologies. To receive this grant, one must be developing natural products or technologies based on biological organisms and for use in either food production, agriculture, bioproducts, health, wellness, or water and waste management.
Receive up to 40% of the total cost of developing your proof-of-concept to $250,000. All projects operating under the Proof of Concept program are limited in the schedule to 18 months or less.
7. AIF – Atlantic Innovation Fund
AIF is strictly to help businesses and research institutions in Atlantic Canada – New Brunswick, Newfoundland, PEI, and Nova Scotia. The AIF supports products and services in their early development through commercialization.
As a tech company in this region, you can receive a grant of up to 75% on eligible project costs up to $3 million. However, the technology being developed has to have a strong emphasis on R&D and show commercialization potential in favour of Atlantic Canada’s economic development.
8. IEG – Innovation Employment Grant
The EIG program targets businesses operating in Alberta conducting R&D. It’s provided in a refundable tax credit, offering a grant that covers up to 20% of qualifying expenditures. The criteria for qualifying expenditures are similar to that of the SR&ED program.
Receive an 8% payment for eligible R&D spending up to the corporation’s base level of spending and an enhanced 20% payment for eligible R&D spending that exceeds the corporation’s base level of spending. Alberta’s EIG is capped at a maximum of $4 million in annual R&D spending.
9. ISI – Innovation Skills Initiative
The ISI is a BC-only grant that Innovate BC launched to help BC-based technology companies. Like other grants on this list, ISI focuses on hiring post-secondary students and will provide up to $10,000 annually to hire one.
For a tech company, you get the funds and the chance to meet and train potential future qualified employees, access to resources to help your business advance its innovation initiatives, and access to young problem-solvers who can benefit your project.