What the Innovative Solutions Canada Program Can Fund
The Innovative Solutions Canada (ISC) Program is a federal initiative designed to support Canadian small and medium enterprises (SMEs) in developing and testing innovative products and services that address governmental challenges. This article outlines the types of expenses and projects that the ISC Program can fund, helping businesses understand what they can include in their funding applications.
Program Funding Overview
The ISC Program focuses on fostering innovation by providing financial assistance to SMEs engaged in research and development activities. The funding is split into two phases: the first phase supports the creation of a feasibility report, while the second phase aids in the development and testing of prototypes. The program aims to help commercialize market-ready solutions that align with government needs.
Funding Amounts & Rates
Phase 1: Proving Feasibility
Organizations can receive up to $150,000, although some cases may allow up to $300,000 to develop a proof of feasibility report. The funding covers a maximum six-month period.
Phase 2: Developing and Testing Prototypes
Successful applicants may obtain up to $1 million in funding over two years for prototype development and testing. In exceptional cases, funding can reach up to $2 million.
Eligible Expenses
The ISC Program covers various costs associated with innovation development. Eligible expenses include but are not limited to:
Research and Development Costs
Salaries and wages for personnel directly involved in the project.
Contractor fees for specialized technical expertise.
Materials and supplies used specifically for the project.
Prototype Development and Testing
Equipment rental or purchase necessary for prototype creation.
Testing and validation services to ensure product feasibility and compliance.
Travel costs related to project development, such as site visits and consultations.
Consulting and Professional Fees
Fees for consultants and professional services that contribute directly to the project’s success.
Legal and patent services related to protecting intellectual property developed under the program.
Ineligible Expenses
Certain expenses are not covered under the ISC Program:
General operational costs not directly attributable to the funded project.
Marketing and sales-related expenses.
Infrastructure improvements unrelated to the innovation project.
Expense Documentation Requirements
Applicants must maintain comprehensive records of all expenses related to their project:
Detailed invoices and receipts for all expenditures.
Contracts and agreements with third-party service providers.
Timesheets and payroll records for personnel involved in the project.
Examples of Funded Projects
Projects funded by the ISC Program typically involve innovative solutions that address specific government challenges. Examples include:
Development of a new software platform to improve public service efficiency.
Creation of environmentally sustainable manufacturing processes.
Advanced healthcare solutions that enhance patient outcomes.
Funding Disbursement & Claiming Process
Disbursement Method: Funding is typically provided through reimbursement, requiring organizations to initially cover expenses and submit claims.
Claim Submission: Detailed claims must be submitted regularly, with supporting documentation.
Processing Timelines: Claims are usually processed within 30 to 60 days.
Stacking Rules
The ISC Program allows for funding stacking with other government programs, provided the total public funding does not exceed a certain percentage of total project costs. Applicants should ensure compliance with these rules to avoid funding conflicts.
Real-World Budgeting Tips
To maximize funding efficiency:
Prioritize expenses that directly contribute to project milestones.
Plan for contingencies to cover unforeseen costs.
Engage with financial advisors to optimize cost allocation and reporting.
Conclusion
The Innovative Solutions Canada Program offers substantial support for SMEs aiming to develop cutting-edge solutions. By understanding the eligible expenses and preparing thorough documentation, businesses can effectively leverage this funding to advance their innovative projects.
