What is IRAP?
The Industrial Research Assistance Program (“IRAP”) is a government funded program for small and medium-sized businesses. IRAP provides technical and business innovation advising, as well as financial assistance under four sub-programs:
- Small Technology Innovation Projects
The program provides grants up to $50,000 to help fund research, development and commercialized technology projects.
- Mid-sized Technology Innovation Projects
The program provides larger grants for companies that are typically focused on creating original software, and develop new projects through R&D.
- Youth Employment Strategy Program
The program provides financial assistance for youth employment by covering 50% (up to $15,000) towards the first 12 months of salary for employees between the ages of 15-30.
- Digital Technology Adoption Pilot Program
The program offers grants for 80% of direct labour costs, and 75% of costs to hire subcontractors used to speed up product development. This grant is capped at $100,000.
To qualify for IRAP funding, your business must meet the basic eligibility criteria:
- Must be a small to medium-sized enterprise in Canada, incorporated and profit-oriented;
- Have 500 or fewer full-time employees;
- Must generate profits through development and commercialization of innovative, technology-driven new or improved products, services, or processes in Canada.
Why IRAP is beneficial for Canada
IRAP’s mandate is to stimulate wealth creation for Canada through technological innovation in small and medium-sized enterprises. Government funding helps support the local technology community, draw talent to Canada and develop our reputation as a leader in innovation.
What is the difference between IRAP and SR&ED?
IRAP provides funding to help start projects. The SR&ED program helps repay a portion of expenses after costs are incurred.
To learn more about IRAP, or to find out if you qualify for the program or contact your Smythe Advisor.