FAQs about Easly’s investment tax credit (ITC) platform:
What is an Easly Advance?
An Easly Advance is the accrued portion of your ITC refund paid to you on-demand. Easly Advances can range from $50,000 to $25,000,000.
How do I apply?
You can apply here by filling out our simple application.
What are the eligibility criteria?
Any company that expects to receive an SR&ED refund or a select few other investment tax credit refunds (such as IDMTC) is eligible to apply. Approval is determined based on several factors ranging from your overall financial health to the details about your ITC claim.
What information is needed to apply?
Basic company information, financial information, and information about your claim to the program you’re interested in financing. If you’re interested in financing an investment tax credit, we’ll want to see your claim history, although first-time filers are accepted.
How quickly will I receive funds once I’m on the Easly Platform?
Qualified applications can be approved in as little as two weeks. Funds will be released in as quickly as a few hours after an application is approved and confirmed. The funds usually appear the next business day but may take up to three business days to process.
I’ve had my SR&ED claim denied/reduced from the CRA. Am I still eligible?
Yes. We review every company on a case-by-case basis.
Will my personal credit score be affected by applying?
No.
Is a personal guarantee required?
No. Our loans do not require a personal guarantee.
What security is required for financing with Easly?
Easly registers a lien under the PPSA or equivalent regional legislation. An Easly Advance only requires other creditors to subordinate to us on the proceeds of the program you are financing. We have strong working relationships with many other lenders, allowing us to expedite this process, so you can get your first funding in two weeks or less.
What if I have other secured creditors?
We only require a priority lien on the proceeds of the program you are financing. We have strong working relationships with many major lenders in Canada.
How does repayment work?
We get paid when you receive your government funding.
What if my SR&ED claim is delayed due to an audit?
We review potential delays (such as a technical and/or financial audit) and grant extensions on a case-by-case basis.
What if my SR&ED claim is denied?
In the unfortunate event your claim is denied, you will still owe the loan amount.
Are there termination fees if I want to stop drawing funds?
No, you can terminate the Easly Platform agreement at any time at no cost as long as your outstanding balance is zero.
How do I draw funds each quarter?
At the end of every quarter, we calculate your available balance based on updated financials and relevant expenditures, which you can then use to request an additional draw.
How much funding do I have access to?
For SR&ED, the amount of funding available from Easly is 75% of the size of your SR&ED expenditure for the relevant period.
Are there any restrictions on the use of funds?
There are no restrictions on the use of funds received from the Easly Platform. Many of our customers inject the funds right back into R&D.
SR&ED
How do I apply for the SR&ED program?
To make a claim, you must file a T2 corporate income tax return and the related Federal and Provincial R&D schedules. These schedules vary by province. The CRA website has more information.
Do I need to use a professional service to file an SR&ED claim?
Many companies look to accounting firms and specialty SR&ED consultants to prepare their SR&ED claims (Form T661). Filing an SR&ED claim can be a daunting task. These professionals can help both young and mature firms navigate the process. Easly can finance all claims, whether they’re prepared by professionals or not. We recommend working with one of our trusted partners for the best rates and outcomes. Please contact us for more details.
What types of businesses are eligible to claim SR&ED tax credits?
Any business that spends money on novel research or is advancing its understanding of existing technology in order to improve or develop new materials, devices, products, or processes may be eligible to claim SR&ED.
What types of expenditures can be claimed?
Salaries and wages, materials consumed or transformed, sub-contractors, and some 3rd party payments associated with the SR&ED activities may all be acceptable SR&ED expenditures.
How much can I get back?
The federal government offers a 35% investment tax credit to Canadian-controlled private corporations (CCPCs) for the first $3m of eligible SR&ED expenses. Your company will likely qualify for provincial investment tax credits as well. These can vary substantially by province. Our SR&ED Calculator is a handy tool that can help you estimate the value of your refund.
When is the deadline for filing my claim?
You can file your SR&ED claim up to 18 months after the end of your fiscal year. If your fiscal year ends on December 31st, 2019, your claim is due before June 30th, 2021.
Can You Receive Funding from IRAP and SR&ED?
Since these government programs share several similarities, some companies believe they can only apply for one at a time. In reality, you can use SR&ED tax credits and IRAP funding to support eligible activities concurrently. Learn more here.
How Far Back Can You Claim R&D Tax Credits?
Following the submission of your income tax return, SR&ED-eligible expenditures can be claimed only within 12 months. They may not be back-dated for previous years. Per the Canada Revenue Agency (CRA) SR&ED Filing Requirements Policy, SR&ED claims are subject to strict reporting deadlines. Learn more here.
Is Your Work Eligible for the SR&ED Tax Incentive?
The Canada Revenue Agency (CRA) lists the following five questions to determine if work is eligible. Read the full list here.
