Leverage Financing: Government Programs and Incentives
There are different granting programs that might be of interest to Canadian SMEs. Note that on the Canada Business Web site, under the topic "Government grants, loans and financing", you can also access a wealth of information about government programs and services relevant to your business situation. For example, the National Research Council's (NRC) Industrial Research Assistance Program (IRAP) is Canada's premier innovation assistance program for Canadian SMEs. NRC-IRAP provides Canadian SMEs with value-added technological and business advice, financial assistance and a range of other innovation assistance.
Canadian SMEs should be aware of the tax incentives for performing research of new products, processes, and ideas. For example, the Scientific Research and Experimental Development (SR&ED) Program is a federal tax incentive program that encourages Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) in Canada that will lead to new, improved, or technologically advanced products, services, or processes. The SR&ED Program is the largest single source of federal government support for industrial research and development. The program encourages industry, including SMEs and start-up firms, to develop technologically advanced products and processes in Canada. Claimants can apply for SR&ED investment tax credits for expenditures such as wages, materials, machinery, equipment, some overhead, and SR&ED contracts.