What the SR&ED changes mean for your funding strategy

Scientific Research and Experimental Development (SR&ED) changes finally passed in March have increased both the size of claims and the number of businesses that can access them.

For innovative companies, that’s a meaningful shift. The bigger question is what it means in practice — how it changes the way you plan, time and fund your R&D.

We asked Easly Managing Director Laurence Gutcher to share what innovative businesses should be thinking about now.

What’s changed

The latest SR&ED changes expand both eligibility and the level of support available:

• the enhanced 35% tax credit now applies to up to $6 million in eligible annual spend (previously $3 million)
• certain Canadian public companies can now access enhanced credits
• taxable capital thresholds have increased, allowing more businesses to qualify before phase-out applies
• Canadian-controlled private corporations (CCPCs) can elect to use updated phase-out thresholds
• certain capital expenditures are once again eligible.

Together, these changes increase both the value and accessibility of SR&ED.

Q&A: What this means for your funding strategy

Q: Will more businesses be able to access SR&ED financing?

Laurence: Potentially, yes. With higher expenditure limits and broader eligibility, more businesses may qualify for larger refunds. That increases the amount of capital they can bring forward through SR&ED financing.

Q: I’m a public company — does this change anything for me?

Laurence: It could. Some Canadian public companies can now access the enhanced credits. If your claim size increases, so does your ability to use that future refund as a source of funding today.

Q: How do higher expenditure limits change the way businesses think about funding?
Laurence: It gives you more room to be strategic. We’re seeing businesses consider whether to increase R&D investment, or access a larger portion of their claim earlier to manage cash flow.

Q: What about businesses still waiting on their SR&ED refund?

Laurence: Financing continues to play an important role. The changes may increase the value of your claim, but they don’t necessarily change timing. Bringing that forward can help keep projects moving.

Q: Are businesses still using SR&ED financing as a one-off, or more regularly?

Laurence: Increasingly, it’s forming more of an ongoing funding strategy. Rather than waiting once a year, businesses are accessing SR&ED financing more regularly to smooth cash flow and maintain momentum.

Q: What’s your advice for businesses navigating these changes?

Laurence: Take the time to understand how the changes apply to you. Speak with your tax advisor, and think about how SR&ED fits into your broader funding mix. The opportunity now is not just to claim more, but to use it more strategically.

What this means in practice

For many businesses, these changes shift SR&ED from something reactive to something more strategic:

• larger claims can translate into more capital you can access earlier
• broader eligibility means more businesses can include SR&ED in their funding mix
• timing still matters, particularly when refunds are delayed
• financing allows you to align funding with your R&D plans, not just your tax cycle.

If you’re thinking about how to apply this in practice, our guide on Seven ways to use SR&ED financing to power your R&D explores practical approaches.

Turn your SR&ED claim into momentum

As SR&ED becomes more accessible and more valuable, the opportunity is not just to claim more — but to use it more effectively.

An Easly Advance gives you flexible, non-dilutive capital based on your expected SR&ED refund, so you can access funding when you need it and keep your R&D moving forward.

Call our expert team on 1-833-386-3632 or contact us to explore how an Easly Advance can support your 2026 growth plans.