Government programs

 

Depending on where you and your potential business are located in Canada, the federal and provincial governments often offer funding programs to help build technology businesses. These programs aim to boost technology transfer from academic and research organizations to business, to create useful commercial products and profitable businesses in their jurisdictions, and to support employment and training in technology sectors locally.

Government programs provide good support to a financing plan but often require that the business provide some level of funding from their own sources. As a key qualifier, many programs call for the business to provide matching funds (50%). This may be prohibitive depending on what stage your idea or company has reached and what resources you have available.

Some considerations when seeking government funding:

• Where will you find the required (matching) funds necessary to qualify for a number of government programs?
• How long will the approval process take for your application, and when would the government funds be advanced to your business?
• Do any terms associated with these programs limit the operation, funding or exit of your business? For example, you may face a requirement to spend all of the funds in a specific geographic location, or that the government can veto the sale of the business to a third party that is not Canadian.

Potential government sources:

• Federal Scientific Research and Experimental Development (SR&ED) tax credits
• Ontario Innovation Tax Credits (OITC): 
• Ontario Centres for Excellence
• Market Readiness Program (a program funded by Ontario’s Ministry of Research and Innovation, and delivered by the Ontario Centres for Excellence and MaRS Discovery District)—it has two initiatives: the Investment Accelerator Fund and the Business Mentorship and Entrepreneurship Program.

• National Research Council/Industrial Research Assistance Program (NRC/IRAP)—it offers technology expertise and advisory services as well as networks/partners along with specific financial assistance for R&D activities in two core areas: youth employment strategies, and research and technology development activities (details at http://irap-pari.nrc-cnrc.gc.ca/howirapcanhelpyou_e.html).
• Ontario Ministry of Research and Innovation —it offers various programs targeted at technology sector.
• Sustainable Technology Development Canada (SDTC)—they have a funding process available for clean tech and environmental opportunities.
• Natural Science and Engineering Research Council of Canada (NSERC)—it runs grant and scholarship programs.

If you decide to pursue one of these government programs, keep in mind that resources exist to help you determine if these programs make sense for your business idea. You’ll find a comprehensive listing of government funding programs in the Funding sources directory of this website. You can also access this information through advisors for each of the programs in your local area.

 

References

Canada Revenue Agency. Retrieved April 7, 2009, from http://www.cra-arc.gc.ca/menu-eng.html.
MaRS Discovery District. Retrieved April 7, 2009, from http://www.marsdd.com/MaRS-Home.html.
National Research Council Canada. Retrieved April 7, 2009, from http://irap-pari.nrc-cnrc.gc.ca/main_e.html.
Natural Science and Engineering Research Council of Canada. Retrieved April 7, 2009, from http://www.nserc-crsng..gc.ca/Index_eng.asp.
Ontario Centres for Excellence. Retrieved April 7, 2009, from http://www.oce-ontario..org/Pages/Home.aspx.
Ontario Ministry of Research and Innovation. Retrieved April 7, 2009, from http://www.mri.gov.on.ca/english/programs/MRI.asp.
Ontario Ministry of Revenue. Retrieved April 7, 2009, from http://www.rev.gov.on.ca/english/.
Sustainable Development Technology Canada. Retrieved April 7, 2009, http://www.sdtc.ca/.

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