NRC IRAP funding and how the advisory process works

The National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) supports small and medium-sized businesses that are turning technology into products. Many founders treat it as a grant to apply for. It works differently. IRAP begins with advice and a relationship. Funding comes later, and only for projects that fit.

Advice before money

NRC describes IRAP's support as customized advice, connections and, in some cases, funding. It lists five goals for that support: building innovation capacity, strengthening the team's technical skills, bringing products to market faster, solving business and technical challenges, and planning for growth. Founders who treat the advisor as a technical and commercial sounding board tend to get more out of the program than those who arrive only with a funding request.

IRAP eligibility

NRC lists four minimum requirements. Your business must:

• Be incorporated, for-profit and operating in Canada.
• Employ up to 500 full-time-equivalent staff.
• Develop and commercialize innovative, technology-driven products or services.
• Be ready to create economic benefits in Canada, such as jobs or innovation capacity.

IRAP does not support sole proprietorships, partnerships, cooperatives, or unlimited and limited liability corporations. NRC states that meeting the minimum requirements does not guarantee support.

Documents to prepare

NRC asks for your CRA business number, a business plan, recent financial statements, ownership structure details and résumés for your management and technical team. Have these ready before the first call.

The three-step IRAP intake

Step 1: Call the contact centre. A senior executive of the business calls 1-877-994-4727. The bilingual centre gathers details and decides whether you are ready to meet an advisor.

Step 2: Meet a client engagement advisor. The advisor reviews your business, explains how IRAP works and may connect you with resources. They may also refer you onward.

Step 3: Work with an industrial technology advisor (ITA). The ITA has technical, business and industry expertise. They assess your team and innovation potential, give targeted advice and identify IRAP supports that fit.

NRC states that this relationship typically starts with advice and referrals before any funding is provided.

How IRAP assesses a funding project

When IRAP considers funding, it assesses five areas: the technical aspects of the innovation; your business, management and financial capacity; the likelihood of results; your commercialization plan; and market potential and benefits to Canada. An invitation to submit a proposal does not guarantee funding.

What IRAP does not fund

• Day-to-day operating costs.
• Non-technical or purely commercial activities.
• Work done outside Canada.
• Research with limited commercialization potential.

The last two points matter for startups that use offshore contractors or plan early research with no product path. Keep funded technical work in Canada and tie it to a product.

Founder takeaways

• Incorporate first. IRAP requires a for-profit corporation.
• Call early, not when cash is short. The advisory stage takes time, and funding follows trust.
• Bring a defined technical problem. Advisors respond best to a specific challenge with a clear market.
• Plan the project in Canada. Work done abroad is not funded.
• Pair IRAP with SR&ED planning. Ask your accountant how both programs apply to the same work before you file.

If IRAP is not the right fit, NRC says its advisors can refer you to other programs. The federal Business Benefits Finder is another starting point.

This article is general information, not legal or financial advice. Speak with a qualified Canadian lawyer or accountant about your situation.

General information. This article is general information, not legal, tax or financial advice. Confirm the details with a qualified professional before you act.

Sources

1. Financial support for technology innovation
   National Research Council Canada