Understanding the Project Types in the Industrial Research Assistance Program (IRAP)

Are you part of a Canadian business that is looking to innovate and grow? Then, you may already be familiar with the National Research Council Industrial Research Assistance Program (NRC IRAP). This federally funded program assists Canadian businesses in their research and development (R&D) projects to accelerate their growth and remain competitive in an ever-changing market. IRAP covers a number of different project types, and it can be challenging to understand which one is the best fit for your business. Below, we’ll cover the basics of NRC IRAP and provide a quick overview of the various project types eligible under IRAP. Continue reading to learn more about IRAP projects!

Defining the IRAP Program

The National Research Council Industrial Research Assistance Program is one of the Canadian financial support programs aimed only at small and medium-sized companies. Eligible enterprises in Canada can use the IRAP program to further their innovative capabilities and fund their research and development (R&D) work to launch their products, services, or processes. The Industrial Research Assistance Program provides financial assistance, advisory services, and networking opportunities with some of the best Canadian business and research organizations.

For over 75 years, this program has enabled countless businesses to grow and undertake projects that benefit Canada as a whole. The IRAP program has helped Canadian organizations develop new products and services by helping fund their employees’ salaries and contracting costs. The funding these companies receive through the Industrial Research Assistance Program is project-based and not used for funding operations. That means if your company is considering IRAP, your project must have a clear objective, metrics for success, and an end date (if you are developing a new product or commercializing a scientific discovery).

The Mission Behind IRAP

The Industrial Research Assistance Program’s mission is simple: to stimulate wealth creation for Canada through innovation. Moreover, this program provides funding and innovation services to assist small and medium-sized enterprises in growing by transforming their ideas into commercial success. IRAP even collaborates with regional and national organizations on diverse initiatives supporting Canadian businesses’ development and commercialization of technologies.

Project Types within the Industrial Research Assistance Program

One of the advantages of IRAP is that it can be applied to various types of projects. Some of the eligible projects include the following:

• IRAP R&D/ Technology Development Projects: These projects tend to have new ideas, involve some technical risks, have market validation, and have significant potential to be advantageous to Canada. Eligible projects under this category can receive up to 80% of employer-paid salaries and up to 50% of contractor fees. However, a company that receives this funding is responsible for covering the remaining 20% of income and 50% of contractor fees. The maximum amount of financial support this program may grant is $10 million.
• IRAP ARPs (Accelerated Review Projects): The ARP process ensures that companies with research projects that are smaller in scope, such as feasibility studies and prototype development, attain the funds they need to complete their work. An eligible grantee may receive up to 80% of base salaries and up to 50% of contractor fees, with the maximum project funding amount being $50,000.
• IRAP International Collaboration: The Industrial Research Assistance Program International Collaboration project is a partnership between Global Affairs Canada and national organizations worldwide. These collaborations aim to support small and medium-sized businesses with research and development partnerships on a global scale. This project type provides support in several areas, including direct financial support to those with international interests, business and technology partnering, and joint R&D projects.

Overall, NRC IRAP is an essential program that assists numerous businesses across Canada in their ventures to commercialize and innovate. While this program provides many advantages for companies and individuals alike, it’s important to note that it can be used along with the SR&ED tax credit program. Maximizing your research and development endeavours requires stable financial resources; let Easly assist you in obtaining non-dilutive funds to accelerate your growth by financing your SR&ED refund today!

Access Non-Dilutive Capital for Your Projects!

Can your company afford to wait for funding for its research and development projects? With Easly’s Capital-as-a-Service (CaaS) platform, you can receive advances on your SR&ED refund to access it during the year instead of waiting for an annual lump sum payment from the CRA. By optimizing your SR&ED refund with Easly and attaining the Industrial Research Assistance Program grants, your company can continue its innovative work by developing new products, services, and processes and bringing recent scientific advances forward.

To learn more about how Easly’s CaaS platform works or to get started with us, contact Easly today!