Industrial Research Assistance Program (IRAP)
The Short Answer: IRAP provides up to $10M in non-repayable R&D grants for Canadian tech SMEs. It covers up to 80% of labour costs. You cannot apply online — you must first contact an Industrial Technology Advisor (ITA) at 1-877-994-4727.
Free consultation • 89% approval rate • $25M+ secured for clients
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What is IRAP?
The Industrial Research Assistance Program (IRAP) is Canada's largest and most established technology assistance program for small and medium-sized enterprises. Administered by the National Research Council of Canada (NRC), IRAP has supported Canadian innovation for over 75 years.
IRAP provides non-repayable contributions (grants) to help fund R&D projects, along with free access to technical and business advisory services. Unlike SR&ED tax credits that reimburse after spending, IRAP provides upfront funding to accelerate innovation.
Key Advantage: IRAP funding is 100% non-repayable and provides upfront capital—you receive payments as you complete project milestones, not after filing taxes. This cash flow advantage is critical for R&D-intensive SMEs.
Who is Eligible for IRAP Funding?
IRAP eligibility centers on company size, Canadian incorporation, and innovation focus. The program specifically targets growth-oriented SMEs with technology development mandates.
- SME status – 500 or fewer full-time employees
- Canadian incorporated – active Canadian operation
- For-profit – commercially oriented business
- Innovation focus – R&D or technology mandate
- Growth potential – capacity to commercialize
- Large corporations (500+ employees)
- Non-profit organizations
- Universities and research institutions
- Government entities
- Companies without technical innovation
Pro Tip: IRAP considers "potential for growth" heavily. Even early-stage startups with strong technology and market potential can qualify. The key is demonstrating commercial viability of your innovation.
How Much Funding Can You Get from IRAP?
IRAP funding varies based on project scope, company size, and regional priorities. The program typically funds 50-67% of eligible project costs.
| Funding Element | Details |
|---|---|
| Maximum Grant | Up to $1,000,000 |
| Typical Range | $50,000 – $500,000 |
| Cost Share | Up to 67% of eligible costs |
| Repayment | None – 100% Non-Repayable |
| Youth Employment | Up to $40K/year (75% of salary) |
| Stacking | Can combine with SR&ED claims |
Important: Average IRAP project funding is approximately $320,000. Larger projects over $500K require additional review and stronger justification.
What Project Costs Does IRAP Cover?
IRAP primarily funds salaries and wages for technical personnel, with limited coverage for contractors and materials. Understanding eligible costs is critical for accurate budgeting.
Eligible Expenses
- Salaries and wages (technical staff)
- Contract research services
- Prototype materials and supplies
- Testing and validation costs
- IP protection (limited)
- Subcontractor costs
Ineligible Expenses
- Capital equipment (major purchases)
- Marketing and sales activities
- General administrative overhead
- Working capital
- Costs incurred before approval
- Owner/shareholder salaries (limited)
What are the IRAP Funding Streams?
Core funding for technology innovation, product development, process improvements, and applied research activities.
Wage subsidies for hiring recent STEM graduates (within 3 years) aged 15-30 for innovation-related positions.
Free access to Industrial Technology Advisors (ITAs) providing technical guidance, business mentorship, and network connections.
How Do You Apply for IRAP Funding?
Contact Your Local ITA (1-2 weeks)
Reach out to an Industrial Technology Advisor in your region. ITAs are your first point of contact and guide you through the entire process. Find your local ITA on the NRC website.
Initial Assessment (2-4 weeks)
Your ITA evaluates your company's eligibility, innovation capacity, and growth potential. This includes reviewing your technology, team, and commercialization strategy.
Project Development (2-6 weeks)
Work with your ITA to define project scope, technical milestones, timeline, and budget. Your ITA provides guidance on what makes a strong project proposal.
Proposal Submission
Submit your complete project proposal through your ITA. The proposal includes technical plan, budget breakdown, commercialization strategy, and milestone schedule.
NRC Review (4-8 weeks)
NRC evaluates technical merit, commercial potential, and project feasibility. You may be asked for clarifications or additional documentation during review.
Contribution Agreement & Execution
Upon approval, sign the contribution agreement and begin project execution. You receive payments as you complete milestones and submit claims.
What Documents Are Required for IRAP?
Company Documentation
- Articles of Incorporation
- Financial statements (2-3 years)
- Business plan
- Organization chart
- Key personnel resumes
Project Documentation
- Technical project description
- Detailed budget breakdown
- Milestone schedule
- Commercialization strategy
- Risk assessment
How Long Does IRAP Approval Take?
| Phase | Timeline | Notes |
|---|---|---|
| ITA Contact & Assessment | 2-4 weeks | Initial eligibility review |
| Project Development | 2-6 weeks | With ITA guidance |
| NRC Review | 4-8 weeks | Technical evaluation |
| Agreement Signing | 1-2 weeks | Contribution agreement |
| Total Process | 2-4 months | From initial contact |
Pro Tip: Timeline can vary significantly based on project complexity and regional demand. Engage early—IRAP fiscal year-end (March 31) often sees faster processing to deploy remaining budgets.
What Common Mistakes Get IRAP Applications Rejected?
Weak Technical Innovation
IRAP requires genuine technological uncertainty. Incremental improvements or routine engineering don't qualify. You must demonstrate that you're solving a problem for which no known solution exists.
No Clear Commercialization Path
IRAP funds innovation that will generate economic returns. You need to demonstrate market demand, customer validation, and a realistic go-to-market strategy.
Insufficient Technical Team
IRAP evaluates your capacity to execute. Projects without qualified technical personnel or relevant R&D experience are rejected regardless of the technology's potential.
Applying After Project Starts
IRAP cannot fund retroactive costs. Contact your ITA before starting the project—costs incurred before approval are ineligible.
IRAP vs SR&ED: Which is Better?
| Factor | IRAP | SR&ED |
|---|---|---|
| Timing | Upfront funding | After expenditure (tax filing) |
| Application | Before project starts | After fiscal year-end |
| Amount | Up to $1M (67% of costs) | 35% refundable (CCPCs) |
| Stacking | Can combine with SR&ED | Can combine with IRAP |
| Best For | Cash flow sensitive SMEs | Established R&D operations |
Best Strategy: Apply for both! IRAP and SR&ED can be combined—IRAP funding reduces SR&ED eligible expenses, but you still get credits on the remaining costs. Many companies maximize returns by leveraging both programs.
Alternative Programs for R&D Funding
SR&ED Tax Credits
Tax credits for R&D expenditures—35% refundable for CCPCs, 15% non-refundable for others.
SR&ED Guide →Strategic Innovation Fund
Large-scale R&D projects ($10M+) with significant economic impact potential.
SIF Guide →Regional Development Agencies
ACOA, WD, FedDev Ontario, and others provide regional innovation funding.
Regional Grants →Frequently Asked Questions
Does IRAP funding need to be repaid?
No. IRAP provides non-repayable contributions (grants). Once approved and claimed, the funding is yours to keep—no repayment required.
Can startups apply for IRAP?
Yes. IRAP funds companies at all stages, from early-stage startups to established SMEs. The key requirements are incorporated in Canada, under 500 employees, and pursuing technology innovation.
Can I combine IRAP with SR&ED?
Absolutely. IRAP and SR&ED can be stacked. IRAP funding reduces your SR&ED eligible expenditures, but you still claim credits on the remaining costs you paid out of pocket.
What is the IRAP success rate?
IRAP has a high approval rate—approximately 70-80% of applications that reach the proposal stage are approved. The key is working with your ITA to develop a strong project before formal submission.
Related Government Funding Guides
SR&ED Tax Credits Guide
Up to 65% refundable R&D tax credits for Canadian businesses
Canada R&D Grants Guide
Complete overview of Canadian innovation funding programs
Strategic Innovation Fund
Large-scale innovation funding for major projects
Federal Grants Overview
Complete guide to Canadian federal business grants
Ready to Secure IRAP Funding?
Our IRAP specialists have secured over $25 million in R&D funding for Canadian tech companies. With in-depth knowledge of what ITAs look for, we help you build a winning application.
Our IRAP Success Package Includes:
Free consultation • Average funding secured: $320K • Success-based fees
🎯 Who Qualifies?
- Canadian-incorporated SMEs (fewer than 500 employees)
- Must be for-profit and growth-oriented
- Developing innovative technology-driven products, services, or processes
- Must have technical and business capacity to execute project
- Not eligible: lifestyle businesses, consulting firms without proprietary IP
📅 Key Deadlines & Application Windows
- No fixed deadlines — rolling intake year-round
- Best time: Q1 (April-June) when new fiscal budgets are allocated
- Processing time: 4-8 weeks from initial contact
- Pro tip: Contact your regional ITA before submitting
📊 How Competitive Is This?
IRAP is moderately competitive:
- Overall success: ~35-40% of applicants receive funding
- First-time applicants: ~25% success rate
- Returning clients: ~55% success rate
Key: Companies engaging proactively with their ITA have 2x the approval rate.
🏆 Recent Award Examples
- Total IRAP FY2025: $420M to ~4,500 companies
- Average contribution: $85K-$150K
- Top sectors: Clean tech (28%), ICT (24%), advanced manufacturing (18%)
- Median company size: 12 employees