Certain “innovative businesses” in Canada may be eligible for additional funding following the government announcement for an extension to the “innovation assistance program” (IAP).
Over $155 million* is being provided to extend the IAP, available through the “industrial research assistance program” (IRAP). The government will contact existing IAP funding recipients that may be eligible over the coming weeks with more information.
In response to the coronavirus (COVID-19) pandemic, a series of announcements were made to provide fiscal and tax relief to support individuals and businesses, including the introduction of the Canada emergency wage subsidy (CEWS).
To assist small- and medium-sized enterprises that were not eligible for the CEWS, the government announced $250 million in funding for the IAP on 17 April 2020. The IAP provides a temporary wage subsidy to eligible innovative firms that do not yet have revenue or are in the early stages of development. The IAP was originally available for the period 1 April 2020 to 23 June 2020.
Canada’s federal government announced an extension of IAP funding to allow eligible recipients to access additional support for the period from 24 June 2020 through 19 December 2020. To be eligible, a recipient must have already qualified and received the initial IAP funding. However, eligibility does not guarantee funding. Each request for funding is assessed based on merit criteria.
The government announced that the extended IAP funding will apply a declining scale of support, meaning the maximum benefit will gradually lessen as the program progresses, in a manner similar to the CEWS.
Read a November 2020 report prepared by the KPMG member firm in Canada
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