The Canadian government spends approximately 24% of GDP on direct and indirect funding programs for businesses. Of that 24%, about 21% is available for indirect funding and 3% is available for direct funding. The indirect funding category is comprised of tax credit programs, while the direct funding category is comprised of repayable and non-repayable grants. The government is slowly shifting focus from indirect funding and introducing new direct funding programs for businesses.
Both direct and indirect funding opportunities offer attractive means of financing business growth and expansion. Repayable expansion funding, such as Fed Dev’s Investing in Business Growth and Prosperity (IBGP) fund, provide interest-free loans to support projects that increase international exports. Non-repayable expansion grants, such as the South Western Ontario Development Fund (SWODF), provide funding for projects that create jobs in south-western Ontario. Workforce development grants such as the Youth Employment Fund and the ICTC – Career Connect program offer funding to offset training and wage costs for young workers and salary costs for new employees in the information and communications technology field, respectively. The Export Market Access (EMA) grant offers funding assistance for SMEs looking to expand into foreign markets. These grants and others can help supplement SR&ED funding generated as your company surmounts technological challenges in new product and process development initiatives.
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.