How manufacturers can receive funding from the government
Webinar focused on funds available to manufacturers, who qualifies to receive funding and how to increase the chances of securing funding.
TORONTO — There are funds and grants for research, training, product development, infrastructure and new technologies from government sources and a webinar hosted by SYSPRO Canada described how to access it.
“Money for Manufacturers 2020,” presented by Igor Chigrin, focused on the funds available to Canadian manufacturers, who can qualify to receive funding and how to increase the chances of securing funding.
“We want Canadian companies to grow, to expand and to become market leaders,” said Chigrin, an expert in government funding for businesses at Fair Grant Writing, a full service government grant writing firm.said in his presentation.
There are three types of funding available in Canada:
- Government grants are non-repayable funding awarded for things like as skills training, hiring and equipment purchasing.
- A government loan is repayable, interest-free, and typically received for large scale expansion, such as plant construction or adding new technologies.
- A tax credit is non-repayable funding awarded retroactively for purposes that included research and development, hiring, or training.
“The golden rule is that you don’t start your project before you get approval, unless you apply for a tax credit, because the only retroactive form of government financing is the tax grid,” Chigrin explained. “All other forms require you to proactively apply and get approval.”
The three large industry groups that tend to get the most of the government’s attention for funding are manufacturing, farming and food processing and advanced technology industries.
He cited a metal fabrication company based in Kitchener, Ont. that received a grant of $309,160, while a Vaughan, Ont.-based aerospace components manufacturer secured a $3 million loan, and, most impressively, a food processing plant in Winnipeg received close to $100 million from the federal government.
“The limit to the amount of government funding that you can access is your ambition,” Chigrin said in reference to the food processing business. “Shore up your growth plan and goals agenda because only growing companies can get that much funding.”
Delving into specific programs, Chigrin talked about the CME Technology Assessment.
To be eligible, manufacturers must be based in southern Ontario, in business for over two years and have 15 to 500 full-time staff.
“The purpose of this program is to facilitate the assessments provided by certain consultants to determine the best industry 4.0 solution for your operation that will improve your productivity and increase competitiveness,” Chigrin said. “The government provides 100% of the consultant cost, up to a maximum of $25,000.”
He also stressed the importance of the Canada-Ontario Job Grant, a program that offers training grants to employers.
“The Canada-Ontario Job Grant program gives manufacturers the freedom of determining what kind of training your employees should take and who should take the training, depending on the size of your company,” Chigrin explained.
The Canada-Ontario Job Grant program provides 50% to 83% of the training expenses, up to a maximum of $10,000. In some cases, manufacturers get up to $15,000 if they hire an unemployed person contingent upon him or her completing the training.
“In this case, manufacturers can get 100% of their training expenses reimbursed up to a maximum of $15,000 if they choose to use the Canada-Ontario Job Grant program,” Chigrin said.
Other programs mentioned in the webinar included:
- CanExport, a funding program that will cover up to 75% of a business’ international market development activities.
- Yves Landry Foundation’s AIME (Achieving Innovation and Manufacturing Excellence), a program established to respond to impacts on manufacturing SME’s resulting from COVID-19.
- Industrial Research Assistance Program (IRAP), a funding program designed to accelerate the research and development projects of Canadian innovators.
There are other programs out there beyond what Chigrin touched on in his presentation.
“It’s like a snowflake on the tip of the iceberg,” he concluded. “There are many other programs out there. Don’t get discouraged if you haven’t seen these programs before — the government wants to see your project.”