A
4 terms
Accelerator Program
A time-limited program (typically 3–6 months) that provides startups with mentorship, funding, workspace, and connections in exchange for equity or a program fee. Accelerators focus on rapid growth and are distinct from incubators, which offer longer-term support without the same intensity.
Canadian context: Notable Canadian accelerators include Creative Destruction Lab (CDL), DMZ at Toronto Metropolitan University, and Techstars Toronto. While accelerators are programs rather than direct grants, many connect participants with grant opportunities such as IRAP and provincial innovation funds.
Explore startup programs
Applicant Process
The individual, business, or organization submitting a grant application. The applicant is the legal entity that will receive and be responsible for the funds if approved. In most Canadian programs, the applicant must be a registered Canadian business or incorporated entity.
Canadian context: For federal programs like IRAP, the applicant must be an incorporated Canadian SME. Some provincial programs (such as Ontario's Starter Company Plus) accept sole proprietors. The applicant is legally responsible for all terms in the contribution agreement.
Application Deadline Process
The final date and time by which a grant application must be submitted. Missing a deadline typically means waiting for the next intake period or the program closing entirely. Deadlines may be fixed (one specific date), rolling (accepted continuously), or periodic (multiple intake windows per year).
Canadian context: Many federal programs such as IRAP and SR&ED operate on continuous intake, meaning there is no fixed deadline. However, SR&ED claims must be filed within 18 months of your fiscal year-end. Provincial programs more commonly use fixed deadlines tied to the fiscal year.
See also: Deadline (Fixed vs Rolling)
Audit (Grant Audit) Reporting
A formal examination of how grant funds were spent, conducted by the funding agency or a third-party auditor. Grant audits verify that funds were used for approved eligible expenses, that reporting was accurate, and that the terms of the contribution agreement were met. Audits can occur during the project, at completion, or years after the project ends.
Canadian context: CRA conducts SR&ED audits on a significant percentage of claims, often 2–3 years after filing. IRAP projects may be audited for compliance at any point during or after the contribution period. Keeping contemporaneous documentation is critical for passing audits.
B
5 terms
Beneficiary Legal
The individual, business, or community that directly benefits from a funded project. The beneficiary may or may not be the same as the applicant. In some programs, the applicant is an intermediary (such as a municipality or non-profit) that administers funds on behalf of end beneficiaries.
Bridge Financing Funding
Short-term funding used to cover expenses while waiting for approved grant funds to be disbursed. Because many grant programs pay in arrears (after expenses are incurred), businesses sometimes need bridge financing to cover costs during the gap between spending and reimbursement.
Canadian context: BDC offers bridge financing products specifically designed for businesses with approved government funding. Some chartered banks also offer grant bridge facilities if you can show an approved contribution agreement.
Budget (Grant Budget) Process
A detailed financial plan submitted as part of a grant application, outlining all projected project costs broken down by category (labour, materials, equipment, travel, etc.). The budget must align with the program's eligible expenses and is used by reviewers to assess the feasibility and cost-effectiveness of the proposed project.
Canadian context: Generic or vague budgets are the most common reason for grant application rejection in Canada. Programs like IRAP and CanExport require line-item budgets with specific vendor quotes where applicable.
Business Number Legal
A 15-digit identifier assigned by the Canada Revenue Agency (CRA) to businesses operating in Canada. The Business Number (BN) is required for most federal and provincial grant applications and is used to identify your business across all CRA programs including GST/HST, payroll, and SR&ED.
Canadian context: Your BN is formatted as 9 digits (the business identifier) followed by a 2-letter program identifier and 4-digit reference number (e.g., 123456789RC0001). You receive a BN when you register with CRA, which you can do online through the CRA Business Registration service.
Business Stage Business
A classification describing where a business falls in its lifecycle, typically categorized as startup (pre-revenue or early revenue), growth (scaling with revenue), or established (stable operations with consistent revenue). Many grant programs target specific business stages, making this one of the first eligibility criteria to check.
Canadian context: IRAP accepts startups at any revenue stage. Futurpreneur (a loan, not a grant) targets businesses under 2 years old. Ontario's Starter Company Plus targets businesses under 5 years. Programs like the Strategic Innovation Fund typically target established companies with $10M+ revenue.
Startup funding guide
C
8 terms
Capital Expenditure Funding
A significant purchase of a long-term asset such as equipment, machinery, or technology infrastructure. Capital expenditures (CapEx) are sometimes eligible under grant programs, though many programs exclude them or cap reimbursement. Understanding whether a program covers capital vs. operating expenses is critical before budgeting.
Canadian context: The CSBFP (Canada Small Business Financing Program) specifically covers equipment and leasehold improvements up to $350,000. IRAP generally does not cover equipment purchases but may cover costs for equipment required exclusively for the R&D project.
Capacity Building Business
Activities that strengthen an organization's ability to deliver on its mission, such as training staff, improving processes, or developing infrastructure. Some grant programs specifically fund capacity building as distinct from project-based activities, recognizing that organizational strength drives long-term impact.
CCPC (Canadian-Controlled Private Corporation) Legal
A corporation that is incorporated in Canada, not publicly traded on a stock exchange, and not controlled directly or indirectly by one or more non-resident persons. CCPC status is one of the most important corporate classifications for accessing Canadian government funding, as it unlocks enhanced rates and eligibility for many programs.
Canadian context: CCPCs receive the enhanced 35% refundable SR&ED tax credit on the first $3 million of eligible R&D expenditures (vs. 15% non-refundable for non-CCPCs). CCPCs also access the small business deduction, reducing the corporate tax rate on the first $500,000 of active business income. If you plan to raise foreign investment, be aware that losing CCPC status can significantly reduce your government funding eligibility.
SR&ED tax credit guide
Co-Investment Funding
An arrangement where the government funding agency invests alongside private-sector investors, sharing the risk and reward. Co-investment differs from grants because it may involve the government taking an equity stake, a royalty arrangement, or a repayable contribution tied to commercial success.
Canadian context: The Strategic Innovation Fund (SIF) uses co-investment structures for large projects, often combining non-repayable and repayable components. BDC Capital also co-invests alongside venture capital firms in Canadian technology companies.
Commercialization Business
The process of bringing research, technology, or innovation to market as a viable commercial product or service. Commercialization is a critical phase in the innovation lifecycle and is the focus of many Canadian funding programs that bridge the gap between research and market-ready products.
Canadian context: IRAP specifically funds the transition from research to commercial application. NRC's Canadian Program for Cyber Security Innovation supports cybersecurity commercialization. Many provincial programs, such as Alberta Innovates and Ontario Centres of Excellence, target commercialization of university research.
IRAP funding guide
Contribution Agreement Legal
The legal contract between the funding agency and the grant recipient, signed after application approval but before funds are disbursed. It outlines the approved project scope, budget, payment schedule, eligible expenses, reporting requirements, intellectual property terms, and conditions for funding clawback. This is a binding legal document.
Canadian context: Federal contribution agreements typically include a clause that total government assistance from all sources cannot exceed 75% of eligible project costs. Read the clawback provisions carefully — spending on ineligible expenses can require you to return all funding, not just the ineligible portion.
Cost-Sharing Funding
An arrangement where the grant program covers a percentage of project costs and the applicant covers the remainder. Cost-sharing ratios vary by program — common splits include 50/50, 60/40, and 75/25 (program/applicant). The applicant's share can sometimes include in-kind contributions.
Canadian context: CanExport SMEs provides up to 50% cost-sharing (up to $50,000) for international market development. IRAP can cover up to 80% of eligible R&D labour costs. The cost-sharing ratio is a key factor in calculating your total out-of-pocket project costs.
See also: Matching Funds, In-Kind Contribution
Crown Corporation Government
A government-owned corporation that operates at arm's length from the government, with its own board of directors. Crown corporations deliver many of Canada's funding programs and economic development services, including lending, investment, and grant administration.
Canadian context: Key Crown corporations in the funding ecosystem include BDC (Business Development Bank of Canada), EDC (Export Development Canada), and Farm Credit Canada (FCC). BDC provides loans and venture capital, not grants. EDC offers export financing and insurance.
D
4 terms
Deadline (Fixed vs Rolling) Process
The timeline structure for accepting grant applications. A fixed deadline has a single closing date — miss it and you wait until the next round. A rolling deadline (also called continuous intake) accepts applications at any time throughout the year, reviewing them as they arrive. Some programs use periodic intakes with multiple submission windows annually.
Canadian context: IRAP uses continuous intake (no fixed deadline). SR&ED must be filed within 18 months of fiscal year-end. CanExport has periodic intake rounds. Many provincial programs tie deadlines to the provincial fiscal year (April 1 – March 31).
Deliverables Reporting
Tangible outputs or outcomes that the grant recipient must produce as specified in the contribution agreement. Deliverables can include prototypes, reports, completed training, published research, jobs created, or revenue milestones. Failure to produce deliverables can trigger funding holdbacks or clawback provisions.
Disbursement Funding
The actual transfer of grant funds from the funding agency to the recipient. Disbursement can occur as a lump sum, in advance payments, or as reimbursements after expenses are incurred. Many programs use a milestone-based disbursement schedule tied to project deliverables and financial reporting.
Canadian context: IRAP typically reimburses eligible costs quarterly based on submitted claims. Some programs hold back 10–15% of total funding until the final report is approved. SR&ED credits are disbursed through the tax system after CRA processes the claim.
Due Diligence Process
The investigation and verification process that a funding agency conducts before approving an application. Due diligence typically includes verifying the applicant's identity, financial health, technical capabilities, and the feasibility of the proposed project. The depth of due diligence correlates with the size of the funding request.
Canadian context: IRAP assigns an Industrial Technology Advisor (ITA) who conducts technical due diligence before recommending a project for funding. For larger programs like the Strategic Innovation Fund, due diligence can take 6–12 months and involves financial audits, management interviews, and third-party technical reviews.
E
4 terms
Eligible Expenses Funding
The specific categories of costs that a grant program will reimburse or cover, as defined in the program guidelines and contribution agreement. Only expenses that fall within approved categories are funded. Spending on ineligible expenses does not just reduce your claim — it can trigger clawback of the entire grant if it constitutes a breach of the agreement.
Canadian context: Common eligible expenses in Canadian programs include salaries for project staff, contractor and subcontractor fees, materials, equipment directly required for the project, and domestic travel. Common ineligible expenses include land and building purchases, existing debt payments, entertainment, and general operating overhead not tied to the project.
Eligibility Criteria Process
The set of requirements that an applicant and their project must meet to be considered for funding. Eligibility criteria typically cover the type of organization (incorporated, CCPC, non-profit), business stage, industry, geography, project type, and size (by revenue or employees). Meeting eligibility criteria does not guarantee funding — it means you qualify to apply.
How to apply for grants
Equity Investment Investment
Funding provided in exchange for an ownership stake (shares) in the company. Equity investment is not a grant — the investor receives a share of future profits and company value. However, some government programs combine equity investment with grant components, and understanding the difference is important when evaluating funding packages.
Canadian context: BDC Capital provides equity investments ranging from $500K to $5M+ alongside its lending products. Accelerators may take 5–8% equity. Government equity programs are distinct from grants and should not be confused with non-repayable contributions.
Expression of Interest (EOI) Process
A preliminary submission that indicates your interest in applying for a funding program, typically shorter and less detailed than a full application. Funding agencies use EOIs to screen potential applicants before inviting full proposals, saving time for both parties. If your EOI is accepted, you are invited to submit a full application.
Canadian context: The Strategic Innovation Fund (SIF) and some NGen supercluster programs use EOI processes. An EOI typically requires a one-page project summary, estimated budget, and basic company information. Approval rates from EOI to full invitation vary widely by program.
F
7 terms
Federal Grant Government
A grant administered by a federal government department or agency, available to eligible businesses across all Canadian provinces and territories. Federal grants tend to be larger than provincial programs, have broader eligibility criteria, and are generally more competitive due to higher awareness and applicant volumes.
Canadian context: Major federal grant programs include IRAP (NRC), SR&ED (CRA), CanExport (Trade Commissioner Service), Canada Summer Jobs (ESDC), and the Black Entrepreneurship Program (ISED). Federal regional development agencies (FedDev Ontario, PrairiesCan, ACOA, PacifiCan, CED, CanNor, FedNor) deliver regionally-targeted federal programs.
Browse federal grants
Final Report Reporting
A comprehensive report submitted at the end of a funded project, summarizing activities completed, results achieved, lessons learned, and a detailed accounting of how grant funds were spent. The final report is typically required before the last portion of funding (holdback) is released.
Fiscal Year Process
A 12-month period used for budgeting, financial reporting, and program planning. The fiscal year determines when program budgets reset, when new intake periods open, and when financial reporting is due. Different levels of government may use different fiscal years.
Canadian context: The federal government's fiscal year runs April 1 to March 31. Most provincial governments follow the same schedule. Your business's own fiscal year (which may differ) determines SR&ED filing deadlines — claims must be filed within 18 months of your fiscal year-end.
Forgivable Loan Funding
A loan where part or all of the repayment obligation is waived (forgiven) if the borrower meets specific conditions outlined in the agreement. Conditions typically include maintaining employment levels, achieving revenue targets, or completing the project within a designated region and timeframe. If conditions are not met, the full loan (or remaining portion) must be repaid.
Canadian context: Several Canadian programs use forgivable loan structures, including some BDC programs and regional development agency offerings. The key distinction: a forgivable loan is not a grant until the conditions are met and the loan is formally forgiven. Budget for potential repayment until forgiveness is confirmed in writing.
Funding Agreement Legal
A general term for any legal contract that governs the provision of funding from a grantor to a recipient. This may be called a contribution agreement, grant agreement, funding letter, or similar term depending on the program. All funding agreements specify terms, conditions, and obligations for both parties.
See also: Contribution Agreement, Grant Agreement
Funding Priority Process
The areas or sectors that a funding program emphasizes in its current cycle. Funding priorities can shift year to year based on government policy, economic conditions, and strategic objectives. Aligning your project with stated funding priorities significantly improves your chances of approval.
Canadian context: Current federal priorities include clean technology, digital transformation, Indigenous economic development, and supply chain resilience. Provincial priorities vary — Alberta emphasizes energy transition, Ontario targets automotive and life sciences, and BC focuses on clean tech and film production.
Funding Type Funding
The category of financial support being provided: grant (non-repayable), tax credit, forgivable loan, repayable contribution (loan), award, or program (in-kind support). Understanding the funding type before applying is essential, as many programs marketed as "grants" are actually loans or tax credits with fundamentally different financial implications.
Canadian context: GrantCompass tracks 224+ programs classified by funding type with grants prioritized over alternatives. Common misclassifications: Futurpreneur is a loan (not a grant), CSBFP is a government-backed loan, and SR&ED is a tax credit (not a grant). True grants include IRAP contributions, CanExport, and Canada Summer Jobs.
Scope: Terms here focus on non-repayable funding (grants, tax credits, awards). For loan-specific terminology (interest rates, amortization, default), see the CSBFP loan guide. For investment terminology (term sheets, convertible notes, dilution), see our startup grants page.
G
5 terms
Grant Funding
Non-repayable funding provided by a government agency or organization to support specific business activities, projects, or research. Unlike loans, grants do not need to be repaid, though they come with conditions including eligible expense restrictions, matching fund requirements, reporting obligations, and project completion milestones. Failure to meet conditions can trigger clawback of funds.
Canadian context: The Government of Canada formally calls grants "non-repayable contributions." The largest non-repayable programs accessible to Canadian SMEs include IRAP (averaging $500K), CanExport ($50K), Canada Summer Jobs (100% wage subsidy), and the Black Entrepreneurship Program (up to $250K). Not everything labeled a "grant" online is actually non-repayable — always verify.
Find grants matching your business
Grant Agreement Legal
A legal contract specifically governing the terms of a non-repayable grant. In Canadian federal programs, this is more commonly called a "contribution agreement." The grant agreement specifies the approved project, budget, timeline, reporting schedule, and conditions under which funding must be returned.
See also: Contribution Agreement
Grant Stacking Funding
The practice of combining multiple government funding programs on the same project to maximize total financial support. Grant stacking is a core strategy in Canadian business funding, and is both legal and encouraged — provided the total government assistance from all sources does not exceed the cap specified in each program (typically 75% of eligible project costs).
Canadian context: A common stacking strategy: IRAP (covers up to 80% of R&D labour) + provincial innovation grant (covers equipment) + SR&ED tax credit (on remaining out-of-pocket R&D costs) + Canada Summer Jobs (for student hires on the project). You must disclose all other government funding in every application. Some programs have specific stacking restrictions beyond the 75% general cap.
Grants without matching requirements
Grantee Legal
The individual, business, or organization that receives grant funding. The grantee is the party that signed the contribution agreement and is legally responsible for complying with its terms, including using funds for eligible expenses only, meeting reporting requirements, and completing the funded project.
Grantor Government
The organization that provides the grant funding. In the Canadian context, grantors are typically federal departments (ISED, NRC, ESDC), provincial ministries, regional development agencies (FedDev Ontario, PrairiesCan, ACOA), or Crown corporations. The grantor sets the program terms, evaluates applications, and administers the contribution agreement.
H
2 terms
Holdback Funding
A percentage of the total approved grant funding that is withheld by the funding agency until the project is completed and the final report is approved. Holdbacks typically range from 10% to 25% of the total grant. This mechanism ensures that the grantee completes the project and meets all reporting obligations before receiving the full amount.
Canadian context: IRAP typically holds back the final payment until the project is complete and all claims and reports are submitted. Some provincial programs hold back 15–20%. Budget for the holdback period — you will have incurred expenses but not yet received the final portion of funding.
HQP (Highly Qualified Personnel) Business
Individuals with advanced degrees (typically a master's or PhD) or equivalent professional experience in a specialized technical field. Some grant programs specifically track or require HQP involvement as a measure of the project's technical capacity and contribution to the knowledge economy.
Canadian context: NRC-IRAP considers the quality of the technical team (including HQP) when evaluating applications. Programs like the NSERC Alliance Grants require academic researcher (HQP) involvement. Hiring and retaining HQP is considered a positive outcome in most federal innovation funding programs.
I
4 terms
In-Kind Contribution Funding
A non-cash contribution to a project, such as donated goods, volunteer time, use of equipment, or provision of workspace. Some grant programs accept in-kind contributions as part of the applicant's matching fund requirement, though the value must be documented and is typically subject to fair market value assessments.
Canadian context: IRAP does not accept in-kind contributions — matching must be cash expenditure. Some provincial programs and NSERC Alliance Grants do accept in-kind from industry partners. Always check the specific program's rules on in-kind before relying on it for your matching requirement.
Incubator Program
An organization or facility that supports early-stage businesses with workspace, mentorship, shared services, and access to networks over an extended period (typically 1–3 years). Incubators differ from accelerators in their longer timelines and focus on nurturing businesses that need more time to develop their model or technology.
Canadian context: Major Canadian incubators include MaRS Discovery District (Toronto), North Forge Technology Exchange (Winnipeg), and Notman House (Montreal). While incubators are programs rather than direct grants, they connect startups with funding opportunities including IRAP, provincial programs, and angel investors.
Indigenous Financial Institution (IFI) Funding
Community-based financial institutions owned and controlled by Indigenous peoples, providing lending, grants, business advisory services, and capacity building to Indigenous entrepreneurs and communities. IFIs fill a critical gap in access to capital for Indigenous businesses that may face barriers with traditional financial institutions.
Canadian context: Canada has approximately 60 Indigenous Financial Institutions across the country, supported by the National Aboriginal Capital Corporations Association (NACCA). They deliver programs like the Aboriginal Business Financing Program, providing business loans up to $250,000 and developmental loans up to $1 million. The Indian Business Assistance Program also provides non-repayable contributions through IFIs.
Interim Report Reporting
A progress report submitted during the course of a funded project, typically required quarterly or at milestone intervals. Interim reports document work completed, expenses incurred, progress toward deliverables, and any changes to the project plan. They are often required before the next disbursement of funds is released.
Canadian context: IRAP requires regular progress reports (frequency varies by project size). CanExport requires interim reports before releasing milestone payments. The quality of interim reporting directly affects the smoothness of your disbursement schedule — late or incomplete reports cause payment delays.
ITC (Investment Tax Credit) Tax
A tax credit earned based on eligible investment expenditures, most commonly associated with the SR&ED program. The ITC reduces the amount of tax a corporation owes. For CCPCs, the SR&ED ITC is refundable (paid as cash even when no tax is owed), making it function similarly to a grant from a cash-flow perspective.
Canadian context: The enhanced SR&ED ITC rate is 35% for CCPCs on the first $3M of eligible expenditures (refundable). The general rate is 15% for all other corporations (non-refundable). Budget 2025 introduced changes to the ITC structure — use the SR&ED calculator to estimate your credit based on current rules.
Calculate your SR&ED credit
J
1 term
Joint Venture (for Funding Purposes) Business
A collaborative arrangement between two or more businesses to undertake a specific project, often formed specifically to meet the requirements of a funding program. Joint ventures can strengthen grant applications by combining complementary capabilities, increasing project scope, and demonstrating industry collaboration.
Canadian context: NGen (Canada's Advanced Manufacturing Supercluster) requires industry-led consortiums, often structured as joint ventures. Some regional development agency programs encourage joint applications from multiple businesses. Joint ventures can also help meet the matching fund requirements by pooling resources from multiple partners.
K
1 term
KPI (Key Performance Indicator in Grant Reporting) Reporting
Measurable metrics specified in a contribution agreement that the grantee must track and report against. KPIs are used by funding agencies to evaluate whether the funded project achieved its intended outcomes. Common grant KPIs include jobs created, revenue generated, products launched, exports achieved, and research publications.
Canadian context: IRAP tracks employment growth, revenue growth, and IP creation. Regional development agencies track jobs created per dollar invested. SR&ED does not use KPIs in the same way but tracks eligible expenditures against claims. Setting realistic KPIs in your application is important — overpromising can create compliance issues later.
L
4 terms
Letter of Intent (LOI) Process
A preliminary document submitted before a full grant application, outlining the proposed project at a high level. LOIs are used by funding agencies to screen applicants before investing time in a full review. They typically include a one-page project summary, estimated budget range, and basic organizational information.
Canadian context: The Strategic Innovation Fund (SIF) and some NGen supercluster programs use LOI processes. Being invited to submit a full application after an LOI does not guarantee funding — it means your project concept aligns with the program's priorities and you should proceed with a detailed proposal.
See also: Expression of Interest (EOI)
Letter of Support Process
A document from a third party (customer, partner, industry association, or government official) endorsing your grant application and confirming the value or viability of your project. Strong letters of support can significantly strengthen an application by providing independent validation.
Canadian context: IRAP applications benefit from customer letters confirming market demand. CanExport applications are strengthened by letters from potential international buyers or in-market partners. Many applicants underutilize letters of support — they cost nothing to obtain and can differentiate your application from competitors.
Leverage Funding
The additional funding or resources that a grant enables beyond the grant amount itself. A $100K grant that enables a $500K project has a leverage ratio of 5:1. Funding agencies use leverage ratios to measure the economic impact of their programs and prefer projects that demonstrate high leverage.
Loan (vs Grant) Funding
Repayable funding that must be paid back to the lender, usually with interest and according to a defined repayment schedule. Loans are fundamentally different from grants because they create a debt obligation. Many programs commonly referred to as "grants" are actually loans — always check whether funding is repayable before applying.
Canadian context: Programs commonly misidentified as grants: Futurpreneur ($75K — it is a loan), CSBFP ($1.15M max — government-backed bank loan), PrairiesCan BSP ($200K–$5M — repayable contribution). True grants include IRAP, CanExport, Canada Summer Jobs, and the Black Entrepreneurship Program. GrantCompass classifies all 224+ programs by funding type so you always know whether you are applying for a grant or a loan.
M
3 terms
Matching Funds Funding
A financial contribution that the grant applicant must provide alongside the government funding, typically expressed as a percentage of total project costs. If a program requires 50% matching and the total project costs $200,000, the grant covers $100,000 and you contribute $100,000 from your own resources. Some programs accept in-kind contributions as part of the match.
Canadian context: CanExport requires 50% matching (you fund half). IRAP does not require traditional matching funds. SR&ED requires no matching — you claim credits on expenditures you have already made. Some programs like the Canada-Manitoba Job Grant require the employer to cover one-third of training costs. For programs that do require matching, there are alternatives that do not.
Grants without matching
Milestone Reporting
A significant checkpoint or deliverable within a funded project that triggers a review, report, or payment. Milestones are defined in the contribution agreement and typically include technical achievements (prototype completed, testing finished), financial thresholds (percentage of budget spent), or time-based markers (quarterly reporting dates).
Canadian context: IRAP projects are structured around milestones that trigger interim payments. Missing milestones without prior communication to your ITA can cause payment delays or project concerns. Always renegotiate milestones proactively if your project timeline changes — funding agencies prefer early communication over missed deadlines.
Monitoring Reporting
The ongoing oversight activities that a funding agency performs to track the progress, compliance, and impact of funded projects. Monitoring can include reviewing interim reports, conducting site visits, auditing financial records, and tracking KPIs. The level of monitoring typically scales with the size of the grant.
N
2 terms
Non-Repayable Contribution Funding
The formal Government of Canada term for a grant. A non-repayable contribution is funding that does not need to be paid back, provided the recipient complies with the contribution agreement's terms and conditions. This includes completing the funded project, meeting reporting requirements, and using funds only for approved eligible expenses. Non-compliance can trigger clawback, converting the contribution into a repayable obligation.
Canadian context: When reading government program descriptions, "non-repayable contribution" means grant. "Repayable contribution" means loan. "Conditionally repayable contribution" means forgivable loan. These distinctions matter enormously for your financial planning — a non-repayable contribution is free money (with conditions), while a repayable contribution is a debt.
See also: Grant, Repayable Contribution
Notice of Assessment Tax
A document issued by the Canada Revenue Agency (CRA) after processing your tax return, summarizing the assessment of your return including any changes, amounts owing, or credits. For SR&ED purposes, the Notice of Assessment confirms whether your claim was accepted, adjusted, or denied, and shows the resulting ITC amount.
Canadian context: SR&ED claimants receive a Notice of Assessment that includes the ITC amount. Processing times for first-time claimants or flagged claims can extend to 120+ days. If your SR&ED claim is adjusted, the Notice of Assessment will show the reduced amount and you can file a Notice of Objection within 90 days if you disagree.
O
2 terms
Operating Expenses Funding
Day-to-day costs of running a business, including rent, utilities, salaries, marketing, and supplies. Most grant programs focus on project-specific expenses and do not cover general operating expenses. However, some programs (particularly those targeting startups or non-profits) may allow a portion of operating costs as eligible expenses.
Canadian context: IRAP covers salary costs for staff working on the funded R&D project but does not cover general operating overhead. Some provincial startup programs provide broader operating support. The distinction between project expenses and operating expenses is a common source of confusion in grant budgeting.
Outcomes Reporting
The measurable results or impacts that a funded project achieves, as distinct from outputs (the activities performed). Outcomes answer the question "what changed because of this project?" rather than "what did you do?" Grant applications that clearly articulate expected outcomes with measurable indicators tend to score higher in competitive evaluations.
P
6 terms
Performance Metrics Reporting
Quantitative measures used to evaluate the success of a funded project against its stated objectives. Performance metrics are typically defined in the contribution agreement and reported on at regular intervals. Common metrics include jobs created, revenue growth, products launched, patents filed, and exports generated.
See also: KPI (Key Performance Indicator)
Pilot Project Business
A small-scale, time-limited implementation of a new product, service, or process, conducted to test feasibility before full deployment. Many grant programs specifically fund pilot projects as a way to de-risk innovation and generate proof-of-concept evidence for larger-scale investment.
Canadian context: IRAP frequently funds pilot implementations of new technology. Sustainable Development Technology Canada (SDTC, now transitioning to NRC) funded clean technology pilot demonstrations. Structuring your project as a pilot can make it more attractive to risk-averse reviewers by demonstrating a staged, evidence-based approach.
Pre-Application Process
Activities and steps taken before submitting a formal grant application, including researching programs, confirming eligibility, gathering documentation, contacting program officers, and preparing budget estimates. Thorough pre-application work significantly increases approval rates by ensuring alignment with program priorities and complete documentation.
Step-by-step application guide
Priority Sector Government
An industry or economic sector that a government has designated as strategically important for funding and support. Projects in priority sectors generally receive favorable consideration in competitive grant evaluations. Priority sectors change over time based on government policy and economic conditions.
Canadian context: Current federal priority sectors include clean technology, AI and quantum computing, life sciences, advanced manufacturing, aerospace, and agri-food. Each province has additional priorities — Alberta emphasizes energy transition, Ontario targets EV and battery supply chains, and BC focuses on film and clean tech.
Program Officer Government
A government employee responsible for managing a specific grant program, including advising potential applicants, reviewing applications, managing contribution agreements, and monitoring funded projects. Building a relationship with your program officer is one of the most effective ways to improve your application quality and navigate the process.
Canadian context: IRAP's equivalent is the Industrial Technology Advisor (ITA), who is assigned to your company and serves as your primary contact throughout the funding relationship. For regional development agencies, program officers are available at regional offices across the country. Do not hesitate to contact program officers before applying — it is their job to help you determine eligibility and strengthen your application.
Provincial Grant Government
A grant administered by a provincial or territorial government, available only to businesses operating in that jurisdiction. Provincial grants tend to offer smaller amounts than federal programs but are less competitive, have faster processing times, and target specific regional economic priorities.
Canadian context: Every province and territory has unique grant programs. Ontario offers Starter Company Plus ($5K) and OIDMTC (film tax credit). Alberta has Alberta Innovates grants and the Small Business Innovation and Research Initiative. BC offers the BC Tech Fund and Innovate BC programs. Stack provincial programs with federal ones for maximum funding.
Browse Ontario grants
Q
1 term
Quarterly Report Reporting
A progress report submitted every three months during a funded project, documenting activities completed, expenses incurred, progress toward milestones, and any challenges encountered. Quarterly reports are the most common reporting frequency for Canadian government grant programs and are typically required before the next disbursement is released.
Canadian context: IRAP uses quarterly reporting aligned with the project timeline. Missed quarterly reports can delay payments by 30–60 days. Set calendar reminders for reporting deadlines and keep project documentation organized throughout the quarter rather than scrambling at reporting time.
R
6 terms
R&D (Research and Development) Business
Systematic investigation or experimentation aimed at discovering new knowledge, developing new products or processes, or significantly improving existing ones. R&D is a broad term that encompasses basic research (expanding knowledge), applied research (solving specific problems), and experimental development (creating prototypes and pilots).
Canadian context: Canada has one of the most generous R&D incentive systems globally, anchored by SR&ED. However, the CRA's definition of eligible R&D for SR&ED is narrower than the common business understanding. To qualify, work must involve technological uncertainty, systematic investigation, and a technological advancement — not just routine engineering or market research.
SR&ED tax credit guide
Recoverable Contribution Funding
Another term for a repayable contribution. Funding that must be returned to the government, typically on a conditional basis tied to the project's commercial success. If the project fails, repayment may be reduced or waived; if it succeeds, the full amount plus potentially a premium must be repaid.
See also: Repayable Contribution
Regional Development Agency (RDA) Government
A federal agency responsible for economic development in a specific geographic region of Canada. RDAs deliver regionally-targeted federal programs, provide business advisory services, and administer funding for local priorities. They are your first point of contact for understanding what programs are available in your region.
Canadian context: Canada's seven RDAs: FedDev Ontario, PrairiesCan (Alberta, Saskatchewan, Manitoba), PacifiCan (BC), ACOA (Atlantic Canada), CED (Quebec), CanNor (Northern territories), and FedNor (Northern Ontario). Each RDA has region-specific programs in addition to delivering national programs. Contact your RDA for a free consultation on available funding.
Repayable Contribution Funding
Government funding that must be repaid, functioning as a loan. The terms "repayable contribution" and "conditionally repayable contribution" are used by the Government of Canada instead of "loan." Repayment terms may be conditional (tied to project success or revenue milestones) or unconditional (fixed repayment schedule). This is not a grant.
Canadian context: PrairiesCan BSP ($200K–$5M) is a "conditionally repayable contribution" — a loan, not a grant. The Strategic Innovation Fund (SIF) often combines repayable and non-repayable components. Always check whether a "contribution" is repayable or non-repayable before including it in your financial projections as free funding.
Reporting Requirements Reporting
The documentation and data that a grant recipient must provide to the funding agency throughout and after the funded project. Requirements typically include financial statements, progress reports, employment data, outcome metrics, and a final report. Failing to meet reporting requirements can delay payments or trigger clawback of funds.
Grant writing guide
RFP (Request for Proposals) Process
A formal document issued by a funding agency inviting organizations to submit proposals for a specific funding opportunity. RFPs outline the program objectives, eligibility criteria, evaluation criteria, submission requirements, and deadline. They are more common in project-based or competitive programs where the agency defines the problem to be solved.
Canadian context: SDTC (now transitioning to NRC) used competitive RFP processes. Some NGen supercluster challenges issue RFPs for specific technology problems. Government procurement and Innovative Solutions Canada also use RFP-like processes for challenge-based funding. These differ from standard grant applications where you define the project.
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Scale-Up Business
The process of rapidly growing a business from early traction to significant market presence, typically involving expanding the team, increasing production, entering new markets, and raising additional capital. Scale-up stage businesses have proven product-market fit and are focused on growth rather than product development.
Canadian context: Several Canadian programs target the scale-up phase specifically, including PrairiesCan BSP (repayable, $200K–$5M), the Strategic Innovation Fund (large projects), and Innovative Solutions Canada (government procurement pathway). The Business Enterprise Program (BEP) provides non-repayable contributions for Black entrepreneurs scaling their businesses.
Seed Funding Funding
Early-stage capital used to develop an idea into a viable business concept, typically ranging from $10,000 to $500,000. Seed funding covers initial costs like market research, prototype development, and team building. It can come from grants, angel investors, accelerators, or personal savings.
Canadian context: Grant-based seed funding options include provincial startup programs (Ontario Starter Company Plus at $5K, Alberta's Scaleup and Growth Accelerator Program), IRAP's Youth Employment Program, and Innovative Solutions Canada's Testing Stream ($1M max for testing with a federal department). For grant-based seed funding without matching requirements, see the no-matching-funds guide.
SME (Small and Medium Enterprise) Business
A business classification based on employee count. In Canada, a small business has fewer than 100 employees (or fewer than 50 in the service sector), and a medium business has 100–499 employees. SMEs collectively employ the majority of Canada's private-sector workforce and are the primary target of most government grant programs.
Canadian context: IRAP specifically targets SMEs with 500 or fewer employees. The CSBFP is available to businesses with annual revenues under $10 million. Most provincial programs target SMEs. Industry Canada defines micro-enterprises as having 1–4 employees, a useful distinction because some programs target this segment specifically.
SR&ED (Scientific Research and Experimental Development) Tax
Canada's largest R&D incentive program, administered by the Canada Revenue Agency (CRA). SR&ED provides investment tax credits (ITCs) to businesses that conduct eligible research and development in Canada. It is a tax credit program, not a grant, but functions similarly to a grant for CCPCs because the enhanced credit is fully refundable (paid as cash).
Canadian context: CCPCs receive a 35% refundable ITC on the first $3 million of eligible R&D expenditures, plus a 15% non-refundable credit on amounts above $3M. Non-CCPCs receive 15% non-refundable. Eligible costs include employee salaries (for R&D work), materials consumed in R&D, subcontractor costs (at 80%), and a prescribed overhead proxy. Claims must be filed within 18 months of fiscal year-end. Contemporaneous documentation of your R&D process is essential for defending claims during a CRA review.
Calculate your SR&ED credit
Stacking Funding
The practice of combining multiple government funding programs on the same project. This term is synonymous with "grant stacking" and is commonly used in Canadian funding contexts.
See also: Grant Stacking
Startup Business
An early-stage business typically characterized by innovation, scalability potential, and limited revenue history. In the Canadian funding context, "startup" usually refers to businesses under 5 years old, though some programs define it more narrowly (under 2 years) or more broadly (any pre-scale business).
Startup grants guide
Supercluster Program
A federal innovation initiative that supports large-scale, industry-led collaborative projects in strategic economic sectors. Superclusters bring together companies, research institutions, and government to drive innovation at a scale that individual organizations cannot achieve alone.
Canadian context: Canada's Global Innovation Clusters (formerly superclusters) include: Digital Technology Supercluster (BC), Protein Industries Canada (Prairies), NGen — Next Generation Manufacturing (Ontario), Scale AI (Quebec), and Ocean Supercluster (Atlantic). These programs fund collaborative projects typically in the $1M–$50M range, requiring significant industry co-investment.
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Tax Credit Tax
A reduction in the amount of tax owed to the government, calculated based on eligible expenditures or activities. Tax credits are not grants — they operate through the tax system rather than as direct payments. However, refundable tax credits (like the enhanced SR&ED credit for CCPCs) function similarly to grants because they are paid as cash even when no tax is owed.
Canadian context: Major Canadian tax credits for businesses include: SR&ED (35% refundable for CCPCs), OIDMTC (Ontario film/digital media), BC IDMTC (interactive digital media), and the Canada Carbon Rebate for Small Business. Refundable credits are more valuable than non-refundable because they generate cash flow rather than just reducing a tax bill.
Tax credit guide
Technical Review Process
An evaluation of the technical feasibility, innovation, and methodology of a proposed project, conducted by subject matter experts as part of the grant review process. Technical reviews assess whether the proposed approach is sound, whether the team has the capability to execute it, and whether the expected outcomes are realistic.
Canadian context: IRAP's Industrial Technology Advisors (ITAs) conduct technical assessments as part of the application process. SR&ED claims can be subject to technical reviews by CRA's Research and Technology Advisors (RTAs) who assess whether the work meets the scientific or technological criteria for eligibility.
Term Sheet Legal
A non-binding document that outlines the key terms and conditions of a proposed funding arrangement before the formal agreement is drafted. In the grant context, a term sheet may precede the contribution agreement, giving both parties an opportunity to review and negotiate terms before committing to the full legal document.
TRL (Technology Readiness Level) Business
A scale from 1 to 9 measuring the maturity of a technology from basic research (TRL 1) to commercial deployment (TRL 9). Originally developed by NASA, TRL is widely used by Canadian funding agencies to assess project stage and determine which programs are appropriate for a given technology.
Canadian context: IRAP typically funds projects at TRL 3–7 (technology development through prototype testing). SDTC (now NRC) funded TRL 5–8 (demonstration and pre-commercial). Innovative Solutions Canada funds TRL 1–6 (R&D through prototype). Knowing your TRL helps you target the right programs — applying to a program designed for TRL 7 with a TRL 2 concept will waste your time.
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Underwriter Funding
An entity that assesses and assumes the financial risk of a loan or guarantee. In the context of government-backed lending programs, the underwriter evaluates the borrower's creditworthiness and the project's viability before approving financing. The government guarantee reduces the underwriter's risk, making it easier for small businesses to access financing.
Canadian context: Under the CSBFP (Canada Small Business Financing Program), chartered banks and credit unions act as underwriters, assessing loan applications against the program's criteria. The government guarantees 85% of the loss if the borrower defaults, making banks more willing to lend to small businesses that might not qualify for conventional financing.
Unincorporated Business Legal
A business operating as a sole proprietorship or partnership without formal incorporation. Unincorporated businesses have limited access to Canadian government funding programs because most federal programs require incorporation. However, some provincial programs accept sole proprietors, and SR&ED credits are available to sole proprietors (though at lower rates than CCPCs).
Canadian context: Ontario's Starter Company Plus accepts sole proprietors. SR&ED claims can be filed by individuals (sole proprietors), but the enhanced 35% rate is only available to CCPCs. IRAP requires incorporation. If you are serious about accessing government funding, incorporating is usually a prerequisite worth completing early.
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Venture Capital Investment
Private equity investment in high-growth potential companies, provided by professional investment firms in exchange for ownership equity. Venture capital is not a grant — it is repayable through equity dilution, and investors expect significant returns. However, venture capital often complements grant funding in a company's overall funding strategy.
Canadian context: BDC Capital is Canada's largest venture capital investor. Key VC hubs include Toronto, Vancouver, Montreal, and Waterloo. Government programs like the Venture Capital Catalyst Initiative (VCCI) invest in VC funds to increase available capital. Manitoba's 45% SBVCTC makes the province attractive for VC investment. Companies that have secured IRAP or SR&ED funding are often more attractive to VCs because government validation reduces perceived risk.
Verification Process
The process by which a funding agency confirms that claimed expenses, activities, or outcomes are accurate and properly documented. Verification can range from desktop reviews of submitted documentation to on-site inspections and third-party audits. The depth of verification typically increases with the size of the grant.
Canadian context: CRA conducts verification of SR&ED claims through financial and technical reviews. IRAP verifies expenses through claim reviews and periodic site visits. Keep original receipts, timesheets, and project records for at least 7 years after the project ends — that is the standard retention period for government-funded projects in Canada.
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Wage Subsidy Funding
A grant that covers a percentage of employee wages, typically designed to incentivize hiring, training, or employment of specific demographic groups. Wage subsidies are among the most accessible forms of grant funding because they have straightforward eligibility criteria and directly address a universal business need (hiring).
Canadian context: Canada Summer Jobs provides up to 100% minimum wage subsidy for hiring students aged 15–30. The Canada-Manitoba Job Grant covers up to $10,000 per employee for training. The Student Work Placement Program subsidizes co-op and internship positions. IRAP also covers salary costs for R&D personnel. Wage subsidies are an excellent entry point for businesses new to government funding.
Working Capital Funding
The cash available to a business for day-to-day operations, calculated as current assets minus current liabilities. Most grant programs do not fund general working capital needs. However, some programs (particularly those targeting startups or businesses in underserved communities) provide flexible funding that can be used for working capital purposes.
Canadian context: The CSBFP can provide up to $150,000 in working capital loans (not grants). BDC offers working capital solutions. The Black Entrepreneurship Program provides more flexible funding that can address working capital needs. For most businesses, grant funding for working capital is rare — focus on project-specific grants and use conventional financing for working capital gaps.
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Year-End Report Reporting
A comprehensive annual report submitted at the end of each fiscal year during a multi-year funded project. Year-end reports summarize all activities, expenditures, and outcomes for the year, and are typically more detailed than quarterly interim reports. They may also include audited financial statements for the project.
Canadian context: Multi-year IRAP and SIF projects require year-end reports. The year-end report is often the basis for approving the next year's funding allocation in multi-year agreements. Late year-end reports can delay the release of subsequent year funding, creating cash flow gaps. Submit on time.
Zero-Interest Loan Funding
A loan that charges no interest on the borrowed amount, meaning the borrower only repays the principal. While more favorable than market-rate loans, zero-interest loans are still repayable obligations — not grants. They are sometimes offered as part of government economic stimulus or targeted support programs.
Canadian context: The Canada Emergency Business Account (CEBA) provided $60K zero-interest loans during COVID, with $20K forgivable if repaid on time. Some Indigenous Financial Institutions offer zero-interest developmental loans. The CSBFP charges a registration fee rather than interest to the government but lenders charge a capped interest rate. Always distinguish between zero-interest loans and actual grants.
Scope: This glossary covers terminology used in Canadian business funding applications and agreements. It does not cover academic research grant terminology (NSERC, SSHRC, CIHR) or personal grants (student aid, housing). For academic research funding terms, consult the NSERC website. For personal grants, consult Canada.ca Benefits.