IRAP Funding for Canadian Tech Startups
NRC IRAP is one of Canada’s main sources of R&D support for small and medium-sized businesses. This guide explains it in NRC’s own terms: you connect with IRAP, work with an Industrial Technology Advisor, and may be invited to propose a project.
What is IRAP, in one paragraph?
NRC IRAP gives incorporated Canadian SMEs with 500 or fewer employees advice from Industrial Technology Advisors, connections, and financial contributions that share the cost of technology R&D projects. There is no open application form: you connect with IRAP, an ITA assesses your business, and you may be invited to develop a project proposal. Funding is paid through monthly claims.
Other federal support, including procurement and export programs, is in the Canadian Startups guide.
This page is general information, not financial or tax advice. Confirm details with your ITA and your accountant.
What does the data say?
NRC’s own evaluation shows IRAP reaches many more firms than it funds, and that funded firms grew revenue and jobs faster than comparable ones. Decision times are published by contribution size, so you can plan around them. The key figures are below.
| Finding | Figure | Source |
|---|---|---|
| Firms reached with advice or funding, 2017–18 to 2021–22 | 22,458 | NRC evaluation |
| Firms funded in the same period | 7,717 | NRC evaluation |
| Core funding disbursed, 2018 to 2022 | More than $1.3 billion | NRC evaluation |
| Decision standard, contributions of $50,000 or less | 20 business days | NRC service standards |
| Decision standard, $3 million to $10 million | 65 business days | NRC service standards |
Is IRAP right for your company?
What IRAP is, who qualifies, how large contributions can be, and how it fits with SR&ED.
How do you get IRAP funding?
From the first call to the proposal: the process, your Industrial Technology Advisor, and writing the proposal.
What happens after approval?
Claims and eligible costs, why proposals get declined, and combining IRAP with other funding.
Connect before you start the work.
Costs incurred before a contribution agreement are generally not reimbursed. Talk to IRAP early, build the relationship with your advisor, and scope a project you can deliver.
Frequently asked questions
What is IRAP funding?
A financial contribution from the National Research Council that shares the costs of an SME’s technology R&D project.
How do I apply for IRAP?
You connect with NRC IRAP at 1-877-994-4727. An Industrial Technology Advisor may invite you to develop a proposal.
Who is eligible?
Incorporated, profit-oriented Canadian SMEs with 500 or fewer FTEs developing innovative technology to commercialize in Canada.
How much can IRAP fund?
Contributions range from $50,000 or less up to $10 million, based on NRC’s service standard tiers.
Is IRAP a grant or a loan?
NRC describes it as a financial contribution paid through monthly reimbursement claims.
Can I use IRAP and SR&ED together?
Yes, but IRAP assistance reduces SR&ED qualified expenditures on the same costs.
Sources & further reading
Program rules, timings and figures come from NRC and CRA pages, checked on the date shown. Your contribution agreement and ITA have the final word.