Funding programs
Grants are not only for startups, not free money, and not available after you've spent. Ten common beliefs about Canadian funding, checked against official sources.
The short answer
No, many popular beliefs about Canadian grants are wrong. You do not need to be a startup or a lab, SR&ED does not require a successful result, grants rarely cover 100% of costs, and spending before you apply can make costs ineligible. Programs also change often, so check the official source and its update date before you plan around any rule.
Frequently asked
No. SR&ED, for example, is not limited by industry, with an exclusion only for prospecting, exploring, drilling or producing minerals, petroleum or natural gas. Other programs set their own criteria, so check each one.
Yes. According to the CRA's guidelines, success or failure in meeting your objectives is not relevant when assessing whether the work qualifies. The work must still involve a technological advancement pursued through systematic investigation.
Usually not. Many programs fund only a share of eligible costs. CanExport SMEs, for instance, funds up to 50% and you pay the rest in cash.
Often no. CanExport SMEs excludes costs incurred, invoiced or paid before the application is submitted, and Quebec's ESSOR program counts expenses from the date the application is acknowledged. Confirm the rule before you commit funds.
For most CCPCs, the enhanced rate is 35% on qualified expenditures up to $6 million for tax years beginning after December 15, 2024, and 15% above that. The credit on current expenditures is fully refundable up to the limit, per the CRA.