Government programs

NRC IRAP: advice and funding for innovative small and medium-sized firms.

Advice and funding for innovative small and medium-sized firms

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What does NRC IRAP offer innovative businesses?

Short answer: The National Research Council's Industrial Research Assistance Program supports Canadian small and medium-sized businesses developing and commercializing technology. It pairs advice from an industrial technology advisor with financial support for eligible projects, usually as a contribution toward project costs paid on claims, so firms fund work before reimbursement.

Key facts

Run by the National Research Council
Starts with an industrial technology advisor
For incorporated, for-profit SMEs
Contributions are paid on claims

What it is

The National Research Council of Canada Industrial Research Assistance Program (IRAP) supports small and medium-sized businesses developing and commercializing technology. It combines advisory services from industrial technology advisors with financial support for eligible innovation projects.

IRAP is relationship-driven. Firms usually start by speaking with an advisor, who helps shape a project before any funding request is made.

Who it is for

Incorporated, for-profit small and medium-sized businesses in Canada.
Firms with a technology-driven project that creates new or improved products, processes or services.
Companies that plan to grow and commercialize the results in Canada.

How it works in practice

Contact IRAP to be connected with an industrial technology advisor.
Work with the advisor to define the project, budget and milestones.
Funding, when approved, is typically a contribution toward eligible project costs such as salaries.
Claims are submitted for costs already incurred, so the firm spends first.

Cash-flow timing to plan for

Because claims reimburse costs already paid, a firm must carry payroll for the project before the contribution arrives. For a small team, a month or two of project salaries can be a meaningful amount of cash.

Plan the project budget alongside the claim schedule so you know how much you need to carry at the peak.

Tips before you apply

Talk to an advisor early, before the project starts.
Keep timesheets and payroll records tied to the project.
Build the claim schedule into your cash-flow forecast.
Do not start costs you expect IRAP to fund before you have an agreement.

Questions to ask before you commit

Does my project fit IRAP's current priorities?
Which salaries and contractor costs are eligible?
How often can claims be submitted?
What happens if the project changes scope?
Will an advisor stay involved after funding?

Common mistakes with program funding

Starting eligible spending before an agreement is signed, which can make those costs ineligible.
Assuming a payment date that the program never promised.
Losing receipts and timesheets needed for claims.
Forgetting that repayable contributions must be repaid on a schedule.
Using program support and private financing without checking stacking rules.

Using programs and private funding together

Government programs are usually the lowest-cost money available to a Canadian business, and they are worth pursuing first when you qualify. They are also slower, have intake windows and often pay after you spend. Many owners use a short, revenue-based advance only to cover a timing gap, such as paying a share of a project before a contribution arrives, and repay it when the program pays out. Size any advance to the gap, not to the whole project, and confirm that the program's terms allow other financing.

Source and date

Official program information: nrc.canada.ca. Program details change; check current eligibility, intake dates and terms with the program directly. Summary as of October 2026. Merchant Fund Express is not affiliated with this program and does not administer it.

Common questions

Is IRAP a loan?

IRAP support is generally a contribution rather than a loan, but read the agreement for conditions.

Can a sole proprietor apply?

IRAP is generally aimed at incorporated businesses. Check current eligibility with IRAP.

How long does it take?

It varies. The advisory relationship and project definition often take weeks before funding.