What the SCALE AI — Acceleration Program Can Fund: Eligible Costs and Reimbursement Guide
The SCALE AI — Acceleration program is a national funding initiative that supports Canadian AI startups and SMEs indirectly by reimbursing eligible costs incurred by certified partner programs such as accelerators, incubators, innovation centres, and corporate labs. Rather than issuing grants directly to startups, SCALE AI funds the organizations that deliver structured programming to them. As of 2024-08-09, certified programs may receive up to $50,000 per Canadian AI startup or SME, on a reimbursement basis, for costs tied to program delivery and activities.
This article explains what the program can fund, what it cannot fund, and how reimbursement works in practice. It is designed to help partner organizations plan budgets and to help startups understand what services and supports are covered when they join a SCALE AI–accredited program.
Program Funding Overview
SCALE AI — Acceleration provides non-repayable contributions to certified partner programs that serve AI startups and SMEs focused on value chains and supply chains. Funding is allocated to each certified program based on the number of eligible startups or SMEs that successfully graduate from the program. Each program receives an annual allocation of eligible companies and an upper limit of reimbursable funding that flows from those completions.
Key points:
Funding is a reimbursement of eligible costs related to program activities.
Up to $50,000 may be reimbursed per supported AI startup or SME.
Startups and SMEs benefiting must be based in Canada.
Funds are granted to partner organizations (not directly to startups/SMEs).
This funding model ensures that organizations can scale high-quality coaching, mentorship, commercialization support, and ecosystem-building activities that directly accelerate Canadian AI ventures.
Funding Amounts & Rates
SCALE AI — Acceleration uses a per-company cap and cohort-driven allocation model.
Maximum amount: Up to $50,000 in reimbursable eligible costs per supported startup or SME that graduates your program.
Allocation: Your program is assigned a set number of eligible startups/SMEs per year; reimbursements cannot exceed the cumulative cap derived from those allocations and your approved budget.
Coverage: The contribution reimburses approved, eligible expenses incurred in Canada that are directly tied to delivering acceleration activities and results for participating companies.
Cost share: The specific cost-sharing ratio, eligible cost categories, and any category caps are defined in your contribution agreement and funding guidelines. They may vary case-by-case.
Practical implication:
If your program has 10 eligible graduates in a year, you may be able to claim up to $500,000 in total eligible reimbursements, subject to your agreement and your documented eligible costs.
Eligible Expenses
According to the program’s funding guidelines, eligible expenses must be incurred in Canada and directly relate to delivering acceleration services to AI startups/SMEs that focus on value chains. Below is a structured list of typical eligible cost categories partner organizations plan for. Always verify exact eligibility and any percentage caps in your agreement.
1) Personnel and Delivery Costs
Salaries and benefits for program delivery staff (e.g., program managers, advisors, technical mentors) attributable to eligible activities.
Contracted mentor, coach, or subject-matter expert fees for training, advisory clinics, or venture-specific problem-solving.
Entrepreneur-in-residence (EIR) or advisor honoraria tied to defined program sessions and outcomes.
2) Training, Workshops, and Cohort Activities
Design and delivery of cohort curriculum (commercialization, IP, data governance, MLOps, regulatory pathways, supply chain integration).
Group workshops, bootcamps, and masterclasses with documented agendas and learning outcomes.
Specialized technical sessions related to applied AI for value chains (e.g., data labelling, model evaluation, compute optimization) when tied to program objectives.
3) Facilities, Space, and Lab Usage
Rental of co-working, office, or event space required to deliver the program to participating ventures.
Use of laboratory, prototyping, or maker spaces for hands-on testing, demonstrations, or product validation linked to the curriculum.
Meeting room rentals for investor days, customer demo days, and mentorship roundtables.
4) Equipment, Software, and Tools for Program Delivery
Equipment leases or short-term rentals directly linked to program delivery (e.g., demo equipment, testing rigs).
Software licences or cloud environments required for training, prototyping, or data-intensive exercises for participating startups, where used by the program (not for long-term company operations).
Learning management systems or collaboration tools used to administer curriculum and mentorship.
5) Commercialization and IP Support Services
Expert services providing IP education and commercialization guidance to participating startups (e.g., prior art education sessions, patent strategy coaching, data-sharing agreements, licensing frameworks).
Market intelligence briefings and sector-specific research used in program teaching materials.
Support for regulatory pathways or compliance advisory relevant to supply chain AI deployment.
6) Ecosystem Events and Investor/Customer Access
Demo days and industry showcases that connect startups to customers, supply chain partners, and investors.
B2B matchmaking activities, site visits, and curated introductions, where costs are tied to program objectives.
Reasonable hospitality costs tied to an event’s delivery (within guidelines), excluding alcohol.
7) Outreach, Recruitment, and Selection
Targeted outreach to recruit Canada-based AI startups/SMEs to the cohort, including inclusive engagement strategies.
Program selection processes (application review, selection panels) and associated logistics if documented as part of program delivery.
8) Reporting, Evaluation, and Audit Readiness
Time and tools for performance measurement, participant tracking, and outcomes evaluation.
Preparation of claims, schedules, and records to meet reporting and audit requirements.
Important notes:
Eligible expenses must be clearly attributable to the approved program and its participating startups/SMEs.
Costs should be reasonable, necessary, and incurred within the approved project period.
Only expenses incurred in Canada are eligible for reimbursement.
Ineligible Expenses
The program explicitly excludes some costs, and other items are commonly disallowed under federal contribution programs. The following list is for planning purposes; consult your agreement for definitive rules.
Direct grants, seed investments, or equity investments to startups.
Expenses incurred outside Canada or paid to non-Canadian suppliers where rules require Canadian-incurred costs.
General corporate overhead not tied to program delivery (e.g., unrelated head office costs).
Capital asset purchases not essential to, or disproportionate to, program delivery needs.
Marketing or PR promoting the accelerator/organization at large, unrelated to the funded program.
Alcohol, gifts, prizes, or entertainment beyond reasonable event delivery norms.
Fines, penalties, late fees, or legal settlements.
Debt service charges, interest, and other financing costs.
Costs incurred before the effective date or after the expiry date of the contribution agreement.
Salaries or contractor time not supported by timesheets, contracts, or activity logs evidencing program delivery.
Taxes and refundable credits (e.g., recoverable HST/GST/QST), unless expressly permitted in your agreement.
If an expense category is not clearly listed as eligible, obtain written confirmation before incurring it.
Expense Documentation Requirements
To claim reimbursement under SCALE AI — Acceleration, partner organizations should maintain complete, audit-ready records. While your agreement will specify exact requirements, the following standards are typical:
Detailed general ledger extracts mapping each claimed cost to an eligible category and the approved budget.
Invoices and receipts for supplier costs, plus proof of payment (e.g., bank statements).
Signed contracts or statements of work for mentors, contractors, and experts, aligning with program activities.
Timesheets for salaried staff and contractors showing hours worked on the funded program and activity descriptions.
Facility and space agreements with dates, rates, and evidence of use for program delivery.
Attendance sheets, agendas, and materials for workshops, training sessions, and events.
Evidence that participating startups/SMEs are based in Canada and graduated from the program (e.g., cohort lists, completion attestations).
Asset and software usage records when claiming equipment or licences for program activities.
Internal approvals and procurement documentation where required by policy.
Signed attestation certifying that costs were incurred in Canada and are accurate and complete.
Retention: Keep all records for the period specified in your agreement. As a best practice, retain financial and program documentation for a minimum of six years after project completion.
Examples of Funded Projects
The following scenarios illustrate how eligible costs can align with the SCALE AI Acceleration model. These are examples, not guarantees of coverage. Actual eligibility depends on your agreement and guidelines.
Example 1: Ontario Accelerator (12-month cohort)
Program delivery team salaries for a program manager, EIR, and AI commercialization advisor.
Contracted mentors for data governance and supply chain integration bootcamps.
Co-working space and meeting rooms for monthly mentor roundtables and investor day.
LMS software used to deliver a structured curriculum and track participant progress.
Claim amount: Up to $50,000 per Canadian AI startup/SME that graduates, multiplied by the number of graduating companies, subject to eligible costs and budget approval.
Example 2: Quebec Incubator (9–12 months)
Workshop series on IP strategy, regulatory readiness, and go-to-market for applied AI in value chains.
Prototyping lab access for model evaluation and demonstrations scheduled as part of the program.
Contractor fees for sector-specific mentors (manufacturing, logistics, retail).
Event costs for a supply chain AI showcase with curated B2B introductions.
Claim structure: Reimbursement of eligible, Canadian-incurred expenses mapped to graduating startups.
Example 3: Alberta Innovation Centre (9 months)
Faculty-led technical sessions on MLOps and model validation in industrial environments.
Advisory hours for integrating AI into supply chain workflows using anonymized datasets.
Short-term equipment leases for demonstrations during coursework.
Travel costs for program staff to deliver on-site sessions in-region (if authorized in your agreement).
Claim validation: Timesheets, invoices, agendas, and attendance records substantiate costs.
Funding Disbursement & Claiming Process
SCALE AI — Acceleration disburses funds by reimbursing eligible expenses after they are incurred and documented. While each agreement defines specifics, partner organizations typically follow these steps:
1) Budget and Agreement
Finalize your contribution agreement with approved activities, timelines, and cost categories.
Confirm your annual allocation of eligible startups/SMEs and any category limits.
2) Deliver Program Activities
Run cohort programming, mentorship, and events per your work plan.
Track participation and ensure participating startups/SMEs are Canada-based.
3) Compile Claims
Aggregate costs by eligible category and cohort period.
Prepare supporting documentation (invoices, timesheets, proof of payment, agendas, cohort graduation list).
4) Submit Claim Package
Provide a claim summary, detailed cost listing, and supporting evidence.
Include required attestations and any progress metrics requested.
5) Review and Reimbursement
SCALE AI reviews your claim and may request clarifications.
Upon approval, reimbursement is issued for the eligible amounts.
Timelines: Processing times vary. Build in several weeks for review and ensure your documentation is complete to avoid delays.
Stacking Rules
Many partner organizations also access provincial or federal funding to deliver programs. Under SCALE AI — Acceleration:
Stacking with other public programs may be permitted but must be disclosed.
Your contribution agreement sets any maximum total public funding and rules on cost-sharing.
Double-claiming the same cost across programs is prohibited.
If other funding reduces your net cost, your claim must reflect that net amount.
Action item: Maintain a funding register for each cohort and document other sources applied to the same costs.
Real-World Budgeting Tips
Start with graduates: Build your budget around the number of Canada-based startups/SMEs expected to graduate, then map per-company delivery costs to the $50,000 cap.
Attribute precisely: Use timesheets and cost centres to attribute personnel time directly to the program.
Prioritize high-impact activities: Allocate a greater share to mentorship, commercialization, and technical enablement proven to drive venture outcomes.
Plan space and tools efficiently: Choose scalable space and shared software resources aligned with cohort schedules.
Pre-clear edge items: For unusual costs (e.g., specialized equipment rentals), obtain written confirmation of eligibility.
Document as you go: Collect invoices, agendas, and attendance lists in real time to streamline claims.
Track inclusivity and reach: Document recruitment activities across provinces and regions to evidence national impact.
Conclusion
SCALE AI — Acceleration funds partner organizations to deliver structured, high-impact programming to Canadian AI startups and SMEs focused on value chains. Funding is reimbursement-based and tied to Canadian-incurred, program-related expenses, up to $50,000 per graduating startup/SME within your allocation. By planning budgets around eligible categories—personnel, mentorship, training, space, tools, and commercialization support—and maintaining rigorous documentation, partner programs can access federal support efficiently while maximizing outcomes for participating ventures. As program rules and allocations can vary, confirm details in your contribution agreement and funding guidelines before incurring costs.
