Strategic Innovation Fund (SIF)

Who is eligible?

• For-profit businesses incorporated in Canada.
• For-profit cooperatives incorporated in Canada.
• Partnerships proposing to carry on business in Canada.
• Not-for-profit organizations incorporated in Canada.
• Canadian-led innovation networks involving universities, colleges, research institutes, businesses and non-profit entities.

Eligible expenses

• Direct labour costs for project activities.
• Direct materials and equipment costs required for the project.
• Other direct project costs and eligible overhead costs (within program limits).
• Subcontracting and consultant costs directly related to the project.
• Necessary and reasonable land and building costs that support project activities and, for networks, benefit all members.
• For Collaborations and Networks: network operating costs such as networking events, regional offices, collaborative R&D participation, conferences, travel, salaries, overhead, office equipment, professional services and other appropriate operational costs.

Ineligible Costs and Activities

• Advertising, except reasonable industry or institutional advertising in specialized journals to disseminate information.
• Interest on invested capital, bonds, debentures, bank or other loans, including bond discounts and finance charges.
• Amortization of unrealized appreciation and depreciation of assets.
• Unreasonable compensation for officers and employees.
• Donations, entertainment expenses, fines, penalties, and membership dues other than regular trade and professional associations.
• Losses on investments, bad debts, collection expenses, or losses on other projects or contracts.
• Life insurance premiums for officers or directors.
• Product development or improvement expenses not associated with the approved project.
• Provisions for contingencies and selling or marketing expenses for products or services developed under the project.
• Taxes such as excess profit taxes, federal or provincial income taxes, goods and services taxes, and special expenses related to those taxes.

Eligible geographic areas

• Organizations and partnerships operating in Canada.

• Technical feasibility and soundness of the proposed project.
• Expected economic, public and innovation benefits for Canada, including jobs, revenues, environmental and social impacts.
• Organizational capacity, including managerial, technical and workforce capabilities to deliver the project.
• Financial and market risk profile, including robustness of eligible project costs and financing.
• Equity, diversity and inclusion practices and alignment with program investment priorities.

• Step 1: Pre-consultation
  • Use the online eligibility questionnaire to verify basic fit with the program.
  • Request a consultation and provide a brief summary of your project.
  • Meet with program officials to confirm alignment with priorities and requirements.
• Step 2: Statement of Interest
  • Complete the Statement of Interest (SOI) form provided by SRF officers.
  • Describe the project, partners, expected benefits to Canada, and alignment with SRF objectives and priorities.
  • Detail your organization’s financial and management capacity and past experience with similar projects or government investments.
  • Submit the SOI and await assessment and feedback or invitation to proceed.
• Step 3: Full Application
  • If invited via a Letter of Intent, prepare and submit a full application with detailed technical, financial and benefits information.
  • Participate in SRF’s due diligence and benefits assessment, responding to requests for clarification or additional data.
• Step 4: Term Sheet and Contribution Agreement
  • If the project passes due diligence, negotiate a Term Sheet outlining funding terms, benefits and key conditions.
  • Following ministerial approval, work with SRF to finalize and sign the Contribution Agreement.
• Step 5: Implementation and Claims
  • After signing, implement the project and submit cost claims, typically quarterly.
  • Provide required status, benefits and risk reports throughout the project, and participate in any audits.

• After submitting a Statement of Interest, applicants receive acknowledgment, an assigned SRF officer, and either a request for more information, an invitation to full application, or notice of non-selection.
• Full applications undergo a detailed due diligence assessment covering technical feasibility, benefits to Canada, environmental impacts, management and workforce capacity, EDI practices, and financial and market risks.
• For network projects, SRF also assesses the capacity and experience of the lead applicant and network members.
• If due diligence is successful, SRF negotiates a Term Sheet, seeks ministerial approval, and then develops a legally binding Contribution Agreement outlining obligations, benefits, reporting and repayment schedules.
• During implementation, SRF reviews regular claims and reports, monitors progress and benefits, and may conduct audits of project costs, royalties and compliance with applicable legislation.

• The program is claim-based, with recipients submitting cost claims typically on a quarterly basis during project implementation.
• Contribution Agreements can span 20 years or more, including long-term monitoring of project benefits.
• Recipients must comply with federal lobbying, conflict of interest, and ethics rules as part of the Contribution Agreement.
• Applicants must have an intellectual property strategy and are responsible for protecting IP arising from funded activities.