Federal Government Launches Major Fund to Create Well Paying Middleclass Jobs
Funding Available to All Sectors
The Strategic Innovation Fund (SIF) is advertising to provide up to 50% in funding towards innovative product development, business expansion and growth and investment attraction. Eligible activities include but are not limited to:
- R&D that will accelerate technology transfer and commercialization of innovative products, processes and services;
- Business growth and expansion;
- Investment attraction and retention
Eligible costs include project-related direct labour, overhead, subcontracts, consultants, direct materials and equipment as well as land/building purchases.
Based on INAC’s interpretation/investigation of the fund, we believe that most of the awarded SIF funding will be long-term interest bearing (e.g. 3%) loans. Conditions may be applied to receiving loan payments, e.g. generate jobs, sales, etc. However, actual terms of financing will not be known until after the applicant has submitted a comprehensive proposal which has been approved for funding. Our experience with other major federal funding programs suggests that it will take approximately 8 weeks to complete an SIF proposal and 6 months for decision to be made by the funder.
Please note that securing SIF funding may reduce an applicant’s claim for Science Research and Experimental Development (SR&ED) tax credits as well as other federal funding. Additionally, it is recommended that an applicant investigates any additional tax implications prior to accepting SIF funding. As well, unlike U.S. or European funding programs this Canadian fund does not allow applicants to pay a consultant on a contingency/performance fee basis to complete the application.
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