Funding amounts and conditions: Strategic Innovation Fund

If your application is successful, the amount of funding you receive ("contribution amount"Footnote 1 ) from the Strategic Innovation Fund (SIF) will depend on a number of factors, including, but not limited to the:

  • overall cost of your project
  • total level of government assistance you get for your project

The minimum SIF contribution amount is $10 million for a project with at least $20 million in total eligible supported costs. The amount you request from SIF should be based on your project needs.

Your Contribution Agreement will specify the type of contribution you will receive.

This page contains information about:

Repayable contributions

SIF contribution amounts are repayable by default. They are structured to ensure fairness between recipients and are determined individually on a case-by-case basis.

The contribution amount and the terms of repayment will be determined after a due diligence assessment of the full application. They are based on the overall project benefits and risks.

Repayable contributions may take one of the following forms:

  • Unconditional: Recipients will repay no more than the nominal value of the amount paid to them by SIF. The amount will be repaid on a fixed repayment schedule over a predetermined period of time, after an initial grace period. Amounts are therefore typically known or predictable upfront. Repayments are typically made on an annual basis.
  • Conditional: Recipients will make repayments that may or may not exceed the nominal value of the contribution paid to them by SIF. Total repayments will depend on certain verifiable conditions, and they will be made mostly over a predetermined period of time. Although conditional repayments can be estimated, the final amounts are typically unknown until a condition occurs. Repayments are typically made on an annual basis, once the repayment amount is able to be determined.
    • Example: Annual audited gross business revenues are a verifiable figure that may be used as an underlying basis for calculating conditional repayments. If a recipient's business grows in the future, and so do their revenues, repayments would align with the growth.
  • A combination of unconditional and conditional: Recipients will make repayments that may or may not exceed the nominal value of the contribution paid to them by SIF. Repayments will be made mostly over a fixed, predetermined period of time and will be based on the terms and conditions of both unconditional and conditional repayable contributions.
    • Example: A statement of work may contain several project activities. One portion of the contribution might be deemed unconditionally repayable, based on a predetermined repayment schedule with fixed repayments. The other portion of the contribution may be conditionally repayable, based on a verifiable metrics, such as audited gross business revenues.

Non-repayable contributions

Non-repayable contributions will only be considered for certain projects where the risk assessment, as verified during due diligence, confirms that there will be significant benefits for Canadians.

Once significant benefits have been proven, non-repayable contributions may only be considered for eligible costs of activities that align with our current investment priorities.

Each project activity's benefits will be assessed on a case-by-case basis to determine if the criteria has been met.

Contribution amounts and sharing ratios by project category

SIF often collaborates with other levels of government (for example, provincial governments) to refer projects or to seek co-funding opportunities. The amount of co-funding for Business Innovation and Growth projects is different from the amount of co-funding for Collaborations and Networks projects.

Business Innovation and Growth projects

Contribution amounts are based on the minimum amount required for the eligible project activities to proceed. Contribution funding is structured to ensure fairness amongst recipients and it is determined on a case-by-case basis.

Contribution funding is typically expressed as a percentage and may be referred to as the sharing ratio. It is equal to the total SIF contribution amount divided by the total eligible supported costs.

If your project is approved for funding, your sharing ratio will be based on the type of activities proposed for your project, with a focus on the eligible activities.

Government assistance co-funding amount

This total amount includes the combined level of assistance from all levels of Canadian government:

  • federal
  • provincial
  • territorial
  • municipal

The combined level of assistance from all levels of Canadian government is taken into consideration when determining contribution funding amounts. However, industry participation is expected.

Collaborations and Networks projects

Contributions are generally non-repayable with certain conditions.

Contribution funding is typically expressed as a percentage and may be referred to as the sharing ratio. It is equal to the total SIF contribution amount divided by the total eligible supported costs.

Activities are grouped into two categories, each with its own sharing ratios:

  • Operational activities such as salaries, office equipment, professional services, overhead, travel, cost related to the further distribution of funds and other operational costs as appropriate. For operational activities, lead recipients may receive contribution funding to cover their eligible supported costs.
  • Project activities such as research and development, platforms, and services. For project activities, recipients may receive contribution funding to cover a portion of their eligible supported costs if they are for-profit, or potentially most or all of their eligible supported costs if they are a not-for-profit organization or academic institution.

Government assistance co-funding amount

This total amount includes the combined level of assistance from all levels of Canadian government:

  • federal
  • provincial
  • territorial
  • municipal

The combined level of assistance from all levels of Canadian government is taken into consideration when determining contribution funding amounts. However, industry participation is anticipated.