UNLOCKING MAXIMUM CAPITALFrequently Asked Questions
Clear answers for complex funding.
General Eligibility Questions
Do we need to be a large company to qualify?
No. Many government incentive programs are designed specifically to support small and medium-sized businesses. Eligibility is typically determined by the nature of the project, its economic impact, and alignment with program objectives rather than company size.
Can startups qualify for funding?
Yes. Startups may qualify for tax credits, grants, or innovation funding if they are developing new technologies, scaling operations, or entering new markets.
For grant programs specifically, funding bodies often require companies to demonstrate operational stability. In practice, many programs expect companies to have approximately $100,000 or more in annual revenue. This threshold varies depending on the program, and exceptions may exist for high-growth or innovation-focused businesses.
Do we need to be profitable to receive incentives?
Not necessarily. Some programs, such as SR&ED tax credits, may provide refundable benefits even for companies that are not yet profitable. Grant eligibility generally depends more on project feasibility, financial capacity, and strategic alignment than on profitability alone. Many programs expect companies to show operational and financial stability to confirm that the company can afford to complete the project as no project is 100% covered by the government.
Is funding only available for scientific research or laboratory-based innovation?
No. Many eligible activities occur within normal business operations, including:
- Process optimization and manufacturing improvements
- Software development and automation
- Product enhancements
- Engineering problem-solving
- Technology implementation initiatives.
SR&ED Eligibility Questions
What qualifies as SR&ED?
SR&ED applies when companies attempt to resolve technological uncertainties through systematic experimentation or development. This includes creating new technologies or significantly improving existing processes, products, or software systems.
We are improving an existing process rather than inventing something new. Can that qualify?
Yes. Incremental innovation frequently qualifies if technical challenges required experimentation, testing, or engineering analysis to achieve advancements.
Do we need formal R&D documentation before applying?
No. Many companies already generate relevant documentation through development work, testing iterations, engineering notes, or internal communications. A structured approach helps align existing materials with CRA expectations.
Is SR&ED likely to trigger an audit?
When claims are prepared strategically and aligned with CRA guidelines, submissions can be made with confidence. Proper technical narratives and financial documentation significantly reduce audit risk.
Government Grant Eligibility Questions
Are grants only available for large capital projects?
No. Grants support a wide range of initiatives, including:
- Equipment investments
- Hiring and workforce development
- Digital transformation
- Market expansion and export initiatives
- Clean technology adoption
- Productivity and automation projects.
Is there a minimum revenue requirement for grants?
Many grant programs require companies to demonstrate operational capacity and financial stability. As a general guideline, companies often need at least $100,000 in annual revenue to qualify for many grant opportunities. This requirement varies by program and sector.
Do we need to match the funding?
All programs require cost-sharing, meaning the company contributes a portion of the project costs. The required contribution varies by program and can often be optimized through strategic planning.
Can we apply for more than one grant at the same time?
Yes. Companies may pursue multiple funding programs for the same project, provided they comply with program stacking rules and funding limits. In many cases, projects can benefit from both federal and provincial programs simultaneously, as long as the incentives are complementary and allowable under each program’s guidelines.
A coordinated funding strategy ensures proper structuring, compliance with stacking requirements, and maximization of total funding available while avoiding duplication of eligible costs.
Process and Engagement Questions
When should we contact a funding advisor?
Ideally before starting the project. Early involvement allows proper structuring to maximize eligibility and avoid missed opportunities.
What happens if we are not eligible?
An initial assessment helps determine alignment with available programs. If a project does not qualify immediately, alternative funding strategies or future opportunities may be identified.
Why work with a specialized incentives advisor instead of our CPA?
While accounting firms focus primarily on tax compliance, government incentives require technical interpretation, strategic positioning, and program-specific expertise. Working with specialists helps ensure opportunities are fully explored and optimized.
