Government funding is critical for startups and small businesses because it provides a non-dilutive source of money that allows them to expand by investing in much-needed capital equipment, research and development, and recruiting and training efforts.
To acquire a meaningful competitive advantage, organizations must maximize the cost-effectiveness of time and resources spent on financing applications by selecting the appropriate funding combinations at the appropriate time. You may dramatically increase the returns on your time and resource investment in government funding applications by using the proper sources of government financing at the right stage of growth. Here in this article, we will discuss important tips for maximizing government funding in Canada including grants for Quebec farmers.
Getting Ready for Upcoming Projects
Because most government grants have strict deadlines and eligibility requirements, as well as limited funds, planning to apply for various funding programs following your company’s evolving goals is one of the most important factors in maximizing the value of government tax credits, grants, and loans.
This entails creating a business plan to identify fundable activities and, as a result, seeking grants before incurring expenses. It also entails being informed about program revisions and new program announcements about upcoming trade fairs, R&D projects, hiring and training initiatives, and equipment purchases or facility expansion plans inside your organization.
Combine and link Different Funding Sources
For diverse projects and at different points of the project life cycle, from early product development to worldwide market expansion, tax credits and grants can be integrated and exploited together to fit your company’s objectives and needs.
Companies can support different components of their projects, such as capital equipment purchases, skill development initiatives, commercialization, and export activities, by mixing diverse sources of funding alongside their annual SR&ED claim filings.
Stack Federal and Provincial Funding
Funding from the federal and provincial governments should be combined.
Combining federal and provincial financing options can help businesses achieve a competitive edge in both local and global markets, as well as get support for a broader range of activities.
The BC Interactive Digital Media Tax Credit (BCIDMTC) program, for example, allows a refund of up to 17.5 percent of qualified earnings and wages if you are developing digital games. You may be eligible for tax credits from both the SR&ED and the BCIDMTC programs if your company pays BC provincial taxes and only claims federal SR&ED credits.
Track Expenditures and Experimental Documentation
Expenses should be tracked, and experimental documentation should be kept. As a result, maximizing the return on your resource investment in the application requires building an effective tracking system for preserving SR&ED technical and financial supporting papers connected to each project.
Supporting documentation demonstrates that the project fits eligibility criteria and allows businesses to split project costs to qualify for numerous programs while staying under government funding stacking limits. SR&ED claims, in particular, necessitate documentation created at the time the work was being done to show the hypotheses tested and the outcomes obtained.
Report After Submitting Your Claim
After you’ve submitted your claim, write a report. SR&ED claims are subjected to a risk assessment, which decides whether the claim will be accepted as-is or if it will be reviewed. Understanding the SR&ED review procedure before making a claim might help you save time and money. Despite its intimidating nature, the SR&ED review procedure allows organizations to submit supplementary documentation to substantiate the validity of the work claimed.