Top Western Canada funding programs

In the July issue of Canadian Fabricating & Welding, we outlined various funding programs available to Canadian manufacturers. However, there also are some great regional options worth exploring.

Check out "Top government funding programs for Canadian manufacturers."

By being proactive and applying for funding before starting a project, Western Canadian fabricators can access government grants and loans to support company investments which can vastly improve the desired outcomes of a project. There are also retroactive tax incentives that allow businesses to recover a portion of their research and development costs from projects already completed.

Provincial Funding Programs for Western Canada

Manufacturers in Alberta can benefit from Alberta Innovates, a public corporation and economic development agency that provides access to research grants and other support options to offset the costs of performing research and development (R&D) in collaboration with academic researchers, other businesses, and public institutions located within Alberta.

There are six targeted government funding program streams provided through Alberta Innovates. All of them are aimed at providing funding support to accelerate projects so that innovations can be commercialized faster.

Alberta Innovates has a variety of programs, all with varying eligibility criteria, timelines, and funding. For all specific program details, upcoming application deadlines, and how to apply, visit the Alberta Innovates program page.

Federal Grants, Loans, and Tax Incentives for Western Canada Businesses

Additional support for Western Canada businesses may be found in the form of federal grants, loans, and tax incentives.

CanExport offers grants for applicants looking to take on Canadian export projects such as creating and implementing marketing materials for international markets and carrying out foreign market research. The intent of the CanExport program is to help de-risk export market expansion plans.

Applicants must be approved before incurring eligible expenses. It takes up to 60 business days to receive a verdict on submitted applications. Applicants may receive up to 50 per cent of funds to a maximum $50,000 grant awarded per project.

Canada Small Business Financing Program is part of Canada’s Small Business Financing Act strategy and was established to help support business growth through business loans with competitive interest rates.

For-profit Canadian businesses with an annual gross revenue of under $10 million can access up to $1 million for business expansion activities, including acquiring a building, conducting leasehold improvements, and purchasing new or used equipment and software components.

Canada Summer Jobs (CSJ) is a government grant that provides support for employers offering supervised career-related work experience to young people. The experiences gained through student placements should further develop applicants’ skills and knowledge, preparing them to transition into full-time career employment.

Public and private sector employers can receive hiring grants for up to 50 per cent of an employee’s minimum hourly rate.

To take advantage of these programs, your business must align applicable projects and strategic spends, then craft and submit a detailed application that outlines your opportunity.

This amount is limited to a maximum $300,000 per employer per province or territory. A maximum of 40 hours per week per employee can be included.

Scientific Research and Experimental Development (SR&ED) offers incentives retroactively for business-led R&D projects. SR&ED applicants claim over $3 billion in tax incentives annually with over 20,000 claimants per year.

It offers tax credits for up to 69 per cent of labour and overhead costs, 36 per cent of contractor costs, and 45 per cent of material costs. All expenses must be costs related to the activity required to resolve a technological uncertainty, obstacle, or challenge.

Businesses located in Alberta may be eligible for the Innovation Employment Grant, Alberta’s provincial variant of SR&ED, as funding through these federal and provincial programs can be stacked.

Getting Started With Government Funding for Canadian Manufacturers

The programs listed previously are just some of the many grants, loans, and tax credit programs available to Western Canadian manufacturers. It is important to note that the world of government funding is dynamic, with programs opening and closing daily. Moreover, identifying government funding programs is just one stage of the funding process.

To take advantage of these programs, your business must align applicable projects and strategic spends, then craft and submit a detailed application that outlines your opportunity.

This article was supplied by Mentor Works, 28 Bett Court, Unit B, Guelph, Ont. N1C 0A5, 888-599-3111, www.mentorworks.ca.