Canada Small Business Financing Program

Canada's flagship federal R&D tax incentive. Reimburses a percentage of eligible R&D expenditures as a tax credit, often refundable for CCPCs.

A federal program from the National Research Council that funds salary and contractor costs for innovation projects at Canadian SMBs. Typical awards range from $25,000 in the small stream to $1 million+ in the standard stream. Designed for businesses doing genuine technical R&D with commercialization potential.

The specific costs a government program will actually fund, as opposed to what you spent on the project overall. Programs usually fund a subset: eligible labour, eligible materials, sometimes overhead. Before applying, read the eligible-expenditure section carefully so you can budget the gap.

The legal document a recipient signs when awarded a government grant or contribution. Typically defines the project scope, eligible expenditures, payment milestones, reporting obligations, and clawback conditions. Read it before signing - some agreements require employment maintenance for years post-funding.

A clause in most grant contribution agreements that requires the recipient to repay some or all of the funding if they fail to meet conditions (employment targets, project completion, sale of the business, ceasing operations in Canada). Less common in tax credits, but standard in active-management grants.