1. What kind of support does IRAP IAP offer?
IRAP IAP provides a wage subsidy for up to 12 weeks to employers.
2. What eligible expenditures and costs can be funded by IAP?
IRAP IAP provides a wage subsidy to employers. Salaries are the only eligible cost. No other costs will be covered under the IAP.
3. What is the eligible claim period for IAP?
The eligible claim period for IAP is April 1, 2020 to June 23, 2020.
4. What is the breakdown of the IAP wage subsidy?
The program will provide $847 per week for 12 weeks, totaling $10,164 for each eligible employee. To receive the maximum allocation, the company's net salary costs, after any federal government support deductions, must be equal to, or greater than, the amount claimed under the IAP.
- There is no cap on the number of employees per company.
- Employees must meet employee eligibility criteria. (See Q 16)
5. What is the IAP payment structure?
- The first payment of 80% for a 12 week period will be issued in May.
- The second payment for the remaining 20% will be issued in June, after the company provides the NRC with information substantiating its claim.
- For each employee, the program will provide $847 a week for 12 weeks, totaling $10,164 per employee.
Assessment and funding decisions
6. How will funding decisions be made?
NRC IRAP welcomes all applications for the Innovation Assistance Program (IAP), but only applicants who meet all of the criteria will be considered for funding. Eligibility does not guarantee funding.
Funding decisions will be made on a priority basis, following a thorough review of an applicant's economic situation and growth potential.
7. The application requests Total Revenue as entered on line 8299 of the T2 Corporate Tax return for 2019, but we haven't filed our T2 for 2019. How should we proceed?
Applicants can use their latest available financial information if they have not yet filed T2 for 2019.
An estimate of your 2019 revenue using relevant and reliable data is acceptable for the application process.
8. How should "Lack sufficient financial resources to sustain operations during the COVID‑19 downturn period" be interpreted?
This statement should be understood to mean that without financial support, the company would be unable to meet all of its financial obligations, such as: paying its employees, paying rent, paying creditors and suppliers.
Applicants are not expected to provide exhaustive supporting information, but rather, a summary of the financial situation of their company. As part of the application, a Duly Authorized Officer and Signing Authority of the firm must attest to the accuracy of the information.
9. How should "Plan to pursue growth and profit by developing and commercializing innovative, technology-driven new or improved products, services or processes in Canada" be interpreted?
To be eligible for IAP, your company must be innovative and growth-oriented. This includes plans to develop and market new or improved products or services. The application questionnaire will guide you to validate if your activities are in line with this criterion.
10. How can I make a decision to apply for IAP not knowing if my company is eligible for the CEWS before the IAP call for application closes?
The CEWS website provides comprehensive information and details for companies to determine eligibility for the program: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html.
11. Can a company unsure of CEWS eligibility apply to both IAP and CEWS for fear of missing a deadline and withdraw their application if both programs determine they are eligible?
The CEWS website provides comprehensive information and details for companies to help make an informed decision.
Companies cannot receive funding from both programs. IAP is targeted to companies pursuing technology-driven innovation that are ineligible under the Canada Emergency Wage Subsidy (CEWS). https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html
12. How can I determine which employees are eligible for support under IAP?
Only salaried employees are eligible for support. No other costs will be covered under the IAP.
All members of staff who will receive a T4 or a T4A at the end of the year are eligible to be supported by this program.
- Employees must be hired and on payroll as of March 1, 2020.
- Dividends are not considered salary cost
- Only contractors on payroll are eligible
13. Are existing NRC IRAP clients eligible for this program?
Yes. NRC IRAP clients can apply for IAP. All IAP applications will be assessed in the same manner.
14. How does this program affect existing NRC IRAP clients receiving project funding?
NRC IRAP clients receiving project funding should continue their activities. Clients must deduct the NRC IRAP government financial support when determining their company's net salary costs request under IAP.
15. Who can apply?
Canadian small or medium sized enterprises (SMEs) pursuing technology driven innovation who are not eligible for funding under the Canada Emergency Wage Subsidy are eligible and can apply for financial assistance under IRAP IAP.
Your company must meet the following to be eligible:
- Be ineligible for the Canada Emergency Wage Subsidy
- Be an incorporated, profit-oriented SME in Canada
- Be a company with 500 or fewer full-time equivalent employees
- Plan to pursue growth and profit by developing and commercializing innovative, technology-driven new or improved products, services or processes in Canada
- Lack sufficient financial resources to sustain operations from April 1, 2020 to June 23, 2020 inclusive
- Have a Canada Revenue Agency business number
- Be incorporated by no later than March 1, 2020
17. What is the application process?
The program will be accepting applications from April 22, 2020 at 7 am ET until April 29, 2020, 11:59 pm EDT
- Applications will be evaluated against program assessment criteria
- Applications will be verified against Canada Revenue Agency records
- Applicants will be notified in writing on the status of their application (as early as the week of May 11, 2020)
- IAP will begin making payments to successful applicants starting the week of May 11, 2020
18. How long will it take for applicants to know status for their application?
Following the assessment and approval of applications, applicants will be notified in writing on the status of their application – as early as the week of May 11, 2020.
19. How long will it take for successful applicants to receive funding?
IAP will begin making payments to successful applicants starting the week of May 11, 2020.
20. How will the program validate the information provided by applicants?
The information collected in applications will be used for the purposes of assessing the merits of applications and due diligence. As part of the assessment process and validation, the information provided will be shared with the Canada Revenue Agency.
In addition, measures will be put in place to ensure that the subsidy is not inappropriately obtained – that applicants are not participating in making a false or deceptive statement. Penalties may apply in cases of fraudulent claims.