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 direct 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.
The Yves Landry Foundation’s Achieving Innovation and Manufacturing Excellence (AIME) Global initiative, a program supporting employee training to support innovation, has opened once again as of December 1, 2014. The federal government has recently injected $9M in funding to the program, on top of the original $6M invested, to help southern Ontario manufacturers achieve a competitive advantage and ensure they have skilled and knowledgeable employees. The Yves Landry AIME Global fund looks to support 200 manufacturers through AIME and create and maintain 2,000 manufacturing jobs while training 7,000 more. Administered by FedDev Ontario and the Yves Landry Foundation, the program will provide 25-50% of training costs up to $50,000, with the applying companying providing the remaining funds.
Companies interested in applying must be manufacturers making to-market products and have 10-1000 employees operating in southern Ontario, and they must have been in business for at least three years, with strong financials over that period. First time applicants to the program are eligible to have 50% of their costs covered, while applicants who applied more than 24 months ago are welcome to apply again, but are only eligible for 25% of their costs matched. The fund will cover both direct and indirect training costs, including trainer fees, trainee wages, accommodation costs, and material costs.
In terms of eligible training, the program will support training in relation to the adaption of new technology or procedures that support innovation and increase global competitiveness through new domestic or export markets. Also, training that provides high-value skills (such as new engineering, software, manufacturing methods, or technologies) to employees in order to increase global competitiveness will also be covered. The key factor in determining eligibility is the creation of new global markets or export opportunities, in order to demonstrate southern Ontario’s growth and strength as a manufacturing centre.
We here at NorthBridge have experience with the Yves Landry program and can help you through each step of the process, from project identification and feasibility assessment through to the a preliminary evaluation, and then a full application as appropriate. For more information, please contact us at firstname.lastname@example.org.
The Western Innovative Initiative (WINN) will return in the fall of 2014 with a second round of funding.
The five-year, $100 million federal funding initiative lists the following objectives:
- Commercialize innovative technology-based products, processes and services;
- Stimulate greater private sector investments in commercialization activities;
- Increase the number of jobs for highly qualified personnel in Western Canada; and
- Assist in industry growth
Western Canada-based Small and Medium Enterprises (SMEs) who have existing developed technologies and are seeking opportunities to move into the marketplace should be on the lookout when the next call for proposals opens. Under the WINN initiative, your company could receive funding for up to 50% of eligible costs in the form of a repayable interest-free loan.
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The Advanced Manufacturing Fund (AMF) is a $200 million program that is run through FedDev. The program aims to subsidize manufacturers in southern Ontario by investing between $10-20 million for eligible expenditures in the form of a repayable grant. AMF promotes continued long-term growth, productivity, and competitiveness of Ontario’s manufacturing sector by investing in innovative technologies that will be commercially ready within 5 years.
Eligible firms are for-profit companies who engage in either manufacturing, R&D or both in Ontario. The program will cover costs associated with prototyping a new product, implementing new and innovative technology and work undertaken to improve products, materials or processes.
The Intake periods for applications are:
- December 9, 2013- October 1, 2014
- January 1, 2015- October 1, 2015
Eastern Ontario companies that are looking to undertake an expansion and development project should consider applying for the Eastern Ontario Development Fund (EODF). EODF will provide non-repayable funding of up to 15% of eligible project costs to a maximum of $1.5 million. This fund supports new investment in local regions, the creation of new jobs, and the promotion of innovation and collaboration.
The sectors eligible for EODF funding are advanced manufacturing, life sciences, processing (primary and secondary), tourism, information and communication technology, and cultural industries. The eligibility criteria stipulates that the company:
- Needs to have at least 10 employees
- Is looking to create 10 new jobs
- Will invest in a project of at least $500,000,
- Will invest in a project that extends over a two to four year period.
NorthBridge Consultants has experience with the EODF application process and will provide the necessary guidance to assist with an application. Our team of business analysts and technical writers can assist with eligibility requirements, project positioning, the preparation of the business plan, the preparation of financial projections, in-person meetings with government officials, and reporting requirements after application submission.