Canadian Funding Programs for Startups: SR&ED, CSBFL, Futurpreneur and More
Governments are looking at funding startups and innovation in their communities, and Canada offers several programs.
Market Readiness Investment Program. Through its Market Readiness Investment Program, Ontario Centres of Excellence makes investments in companies directly, to support their growth and early-stage commercialization and help make them a scalable business. The better-known Investment Readiness Program is a two-year, $50 million pilot designed to advance Social Innovation and Social Finance in Canada, building on existing supports to help catalyze community-led solutions to stubborn and persistent environmental and social challenges.
SR&ED Tax Credits. The Scientific Research and Experimental Development program is a generous incentive program that provides funds for small and large companies to conduct research and development in Canada. The incentives come in three forms: reducing taxes, an investment tax credit, or a cash refund. It is the most extensive federal program supporting R&D in Canada, providing more than $3 billion in tax incentives to over 20,000 claimants each year.
Canada Small Business Financing Loan. These loans are provided for small enterprises to help them procure equipment that will aid operations or expand the business. Small business owners can borrow up to $1,000,000. It is designed to help existing companies or startups acquire the financing to purchase equipment, leasehold improvements and property.
Futurpreneur Loans. Futurpreneur Canada is the only national non-profit organization that provides mentoring, financing and support tools to aspiring business owners aged 18 to 39. You could access a loan of $15,000 to start or buy a business. To be eligible, you need a solid business plan for a company that will employ you full-time, and you need to work with a mentor for two years. You can also secure an extra $30,000 through the Futurpreneur Canada-BDC Start-Up Program if eligible.
Government funding usually has stringent criteria and strong competition, but access to relatively cheap startup funding can be a game-changer for a startup.