What is an SR&ED Tax Credit Loan?
Canadian businesses use SR&ED tax credits for a wide range of expenditures, from inventory and operating expenses to expanding current R&D projects. The CRA strives to complete all accepted claims filed within 60 days and all refundable claims selected for audit review within 180 days, but this is only after the company has submitted their year-end taxes. This extended wait time for funds can leave organizations in a significant bind. They need to pay for materials, services and operating expenses, and the funding may arrive long after payments are due.
Easly Advances allow companies to use future refunds to secure SR&ED tax credit advances. Following a timely review process, funds from Easly are provided within 72 hours after approval in predictable installments that simplify cash flow and support re-investment.
SR&ED tax credit loans also provide an essential source of non-dilutive funding. Early access to these funds eliminates the need to sell equity or take on high-interest loans. Instead, the tax credit advance provides necessary financing while avoiding unaffordable debt and preserving the hard-won value and control over your business.
Which Companies Qualify for SR&ED Tax Benefits?
SR&ED tax benefits are available to all companies that operate in Canada and undertake eligible R&D endeavours. These include:
- Canadian-controlled private corporations (CCPCs)
- Other corporations
- Individual proprietorships
Funds allocated by these entities for R&D must be spent within Canada. This investment helps enhance the country’s innovation strategy, strengthens provincial and federal economies, and ensures Canada remains competitive in domestic and global markets.