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National Research Council · IRAP

IRAP Funding: The Complete Guide to Canada's #1 R&D Grant Program

Last Updated: August 12, 2026

The NRC Industrial Research Assistance Program (IRAP) distributes approximately $414 million annually to 3,300+ Canadian businesses. This is non-repayable R&D funding that you never pay back, with awards ranging from $50,000 for first-time applicants to over $10 million for established R&D programs.

$414M
Annual Budget
3,362
Firms Funded
Up to $10M
Per Project
Ongoing
Intake

Program Details

Key information at a glance

Open

Information last verified by the Impact Applications research team against official program sources. How we verify

Program

Industrial Research Assistance Program (IRAP)

Agency

National Research Council of Canada (NRC)

Funding Range

$50,000 to $10,000,000+

Cost Share

Up to 80% of salaries, 50% of subcontractor costs

Eligibility

Incorporated, for-profit Canadian SMEs with two non-executive employees and 500 or fewer full-time employees developing innovative technology in Canada.

Visit Official Program Page1-877-994-4727

Annual Budget

~$414 million

Firms Funded Annually

~3,362

Funding Type

Non-repayable (grant)

Typical First Award

$75,000 to $200,000

Fiscal Year

April 1 to March 31

Deadline

Rolling intake, no fixed deadline

What Is IRAP?

The Industrial Research Assistance Program (IRAP) is Canada's largest non-repayable R&D funding program. For over 70 years, IRAP has provided grants for Canadian small and medium-sized enterprises (SMEs) to develop and commercialize innovative technologies by providing both funding and expert advisory services.

With an annual budget of approximately $414 million, IRAP funds over 3,300 businesses each year. This is not a loan. It is a direct government contribution that you never repay.

When you are accepted into IRAP, you are assigned an Industrial Technology Advisor (ITA), a senior technology professional who acts as your guide through the program and provides ongoing strategic advice. The NRC employs over 275 ITAs across 128 service points nationwide.

9,187
Clients served annually
6,000+
Receive advisory services only
3,362
Receive direct funding

How Much Funding Can You Get?

IRAP operates several funding streams depending on your project size, stage, and objectives.

ARP (Accelerated Review Process)

Up to $50,000

Faster-track funding for smaller R&D projects. Ideal for early-stage feasibility studies and proof-of-concept work.

Technology Innovation R&D

$50K to $10M+

The core IRAP stream for larger R&D projects. Covers multi-phase development with milestone-based contributions.

Technology Innovation Marketing

$50K to $10M+

The marketing stream from IRAP to test innovative marketing methods. Covers multi-phase marketing development with milestone-based contributions.

Youth Employment Program (YEP)

Up to $30K per graduate

Wage subsidy for hiring post-secondary graduates into innovation roles. Helps build your R&D team while reducing costs.

Clean Technology

Varies

Former Sustainable Development Technology Canada (SDTC) integration. Targeted funding for cleantech innovation projects.

Additional IRAP Streams

Defence Industry Assist ($244.2M)AI Assist ($100M / 5 years)IP Assist

What IRAP Covers

Eligible Costs

  • Canadian salaries and benefits: 40% to 80% coverage, typically 80%
  • Canadian contractor fees: up to 50% coverage

NOT Covered

  • Capital equipment and hardware purchases
  • Overhead, rent, or utilities
  • General operating expenses

Who Is Eligible for IRAP?

Company Requirements

  • Incorporated in Canada
  • For-profit corporation
  • Small or medium-sized enterprise (SME)
  • 500 or fewer full-time equivalent employees
  • Two or more non-executive employees
  • Financially stable with capacity to co-invest
  • Developing innovative technology in Canada
  • Project involves technological uncertainty

Project Must Demonstrate

  • Derisking technology innovation or advancement
  • Viable path to commercialization
  • Economic benefit to Canada
  • Team with capacity to execute the project

NOT Eligible for IRAP

Non-profit organizations
Large enterprises (500+ FTEs)
Charities
Limited liability partnerships (LLPs)
Sole proprietors (unincorporated)
Companies not performing R&D in Canada
Routine engineering or standard product development

How to Apply for IRAP Funding

The IRAP application process is relationship-driven, not form-driven. Here is what to expect from start to finish.

1

Call the NRC

1-877-994-4727

Your first step is calling the NRC directly. Be prepared to describe your company, your technology, and what you are developing. This initial screening determines whether you are a fit for IRAP and routes you to the appropriate regional office.

2

Client Engagement Assessment (CEA) Meeting

Business fit review

An NRC representative conducts a Client Engagement Assessment to review your business profile, innovation capacity, and project scope. This is a preliminary evaluation to determine if your company and project align with IRAP's mandate.

3

Build Your ITA Relationship

Most Important

CRITICAL STEP

This is the most important phase of the process. You are assigned an Industrial Technology Advisor (ITA) who will meet with you multiple times to understand your technology, business model, and growth plans. This is not a sales pitch. It is a partnership evaluation. Your ITA must become a genuine advocate for your project.

4

Project Proposal

Collaborative development with your ITA

Your ITA helps you develop the formal project proposal. Unlike most grant programs, the IRAP proposal is built collaboratively, and your ITA guides you on scope, milestones, budget, and technical objectives. This is a significant advantage as your ITA knows exactly what the review committee looks for.

5

Review and Approval

20-65 business days formal review

Your proposal is submitted for internal NRC review. The formal review takes 20 to 65 business days, but factoring in the ITA relationship-building phase, the practical timeline from first call to signed contribution agreement is 3 to 6 months.

6

Monthly Claims

Reimbursement basis

IRAP operates on a reimbursement basis. You pay your employees and subcontractors first, then submit monthly claims for reimbursement. This means you need working capital to cover costs before the NRC reimburses you, typically within 30 days of claim submission.

Timing Tip

Initiate the IRAP process before April 1 to align with the NRC's new fiscal year when regional budgets reset. Projects submitted early in the fiscal year often benefit from fuller budget availability.

IRAP + SR&ED: Stacking for Maximum Recovery

You can claim both IRAP funding and SR&ED tax credits on the same project. IRAP reduces your SR&ED eligible expenditure base, but the net benefit is significantly positive.

Example: $500K R&D Project

With IRAP + SR&ED

Project cost$500,000
IRAP contribution$100,000
SR&ED claim (on $400K)~$140,000
Total recovery$240,000

SR&ED Alone

Project cost$500,000
IRAP contribution$0
SR&ED claim (on $500K)~$175,000
Total recovery$175,000

The math: For every $1 of IRAP funding, your SR&ED claim drops by approximately $0.35 to $0.42. That means you are net ahead $0.58 to $0.65 per IRAP dollar. In the example above, stacking IRAP with SR&ED yields $65,000 more than SR&ED alone.

SR&ED vs IRAP, side by side

IRAP Funding Secured for Our Clients

Real results from Impact Applications clients who used IRAP as part of a broader grant strategy.

FinTechCalgary, AB

Bitcoin Well

$380K IRAP

2 projects: $130K + $250K

Read case study
Logistics SoftwareCalgary, AB

VantEdge

$200K IRAP

$501K total across 9 programs

"Impact Applications helped us navigate the IRAP process and secure funding across multiple programs."

Glenn Moore

Read case study
SaaS / Restaurant TechCalgary, AB

Top Dish

$385K IRAP

3 IRAP grants, $532,671 total across 12 programs

Read case study

The Pattern

  • IRAP is multi-year: all three clients progressed from smaller initial awards to larger subsequent projects.
  • IRAP is most valuable when stacked: each client combined IRAP with 5 to 10+ other grant programs for maximum recovery.
  • Consultants get more funding faster: experienced advisors navigate the ITA relationship, optimize proposals, and identify stacking opportunities.

How Impact Applications Helps You Secure IRAP Funding

IRAP's relationship-driven process rewards businesses that know how to work with an ITA and structure a competitive proposal. Here's what Full-Service Grant Management looks like for our clients applying for IRAP:

  • We coach you through the entire ITA relationship, from the first NRC call through building your Industrial Technology Advisor relationship
  • We write and structure your project proposal to align with what IRAP reviewers evaluate
  • We write your business plan, a required attachment for IRAP R&D applications, to align your objectives with IRAP's mandates
  • We handle all monthly claims, compliance, and reporting after approval
  • Upon approval, we can help you get grant loan financing so you can receive the cash sooner rather than waiting for each monthly payment
  • We identify how IRAP stacks and sequences with SR&ED, provincial programs, and other funding to maximize total recovery

Our team of grant experts has helped Canadian businesses secure over $865,000 in IRAP funding as part of coordinated, multi-program strategies.

IRAP Frequently Asked Questions

Answers to the most common questions about the NRC IRAP program

No, you can apply directly by calling 1-877-994-4727. However, companies that work with experienced IRAP grant management consultants tend to secure larger awards, navigate the ITA relationship more effectively, and stack IRAP with other programs. Our clients average 2-3X higher first awards and get approved faster compared to the national average.

From first call to signed contribution agreement, expect 3 to 6 months. The formal review takes 20-65 business days, but the ITA relationship-building phase before submission often takes 2-4 months. Starting before April 1 (new fiscal year) can improve timing as budgets reset.

Yes, and you should. IRAP funding reduces your SR&ED eligible expenditure base, but the net benefit is still positive. For example, on a $500K project with $100K IRAP, you claim SR&ED on $400K for roughly $140K in credits. Total recovery: $240K versus $175K from SR&ED alone.

No. IRAP operates on a rolling intake with no fixed deadlines. You can initiate the process at any time. That said, the NRC's fiscal year runs April 1 to March 31, so initiating before April 1 can be advantageous as regional budgets reset.

IRAP does not require breakthrough science. Your project needs to involve technological uncertainty and innovation relative to your company's current capabilities. Adapting existing technology to a new application, building a novel software platform, or developing a new manufacturing process can all qualify.

Yes. Startups are a significant portion of IRAP recipients. You need to be incorporated, for-profit, and have at least two non-executive employees, but there is no minimum revenue requirement. Early-stage companies typically start with smaller awards ($50K-$150K) and scale up with subsequent projects.

First-time awards typically range from $75,000 to $200,000. Returning clients with strong track records can access $500K to $10M+ for larger R&D initiatives. The program distributes approximately $414 million annually across 3,362 firms.

ARP is a streamlined IRAP stream for projects requesting up to $50,000. Approval timelines are typically 3 to 6 weeks instead of the standard 3 to 6 months. ARP is designed for smaller, lower-risk projects (often early-stage startups, pilot projects, or technology adoption initiatives) that don't justify the full IRAP evaluation process.

No. IRAP covers Canadian T4 employee salaries (salaries and benefits at 40-80% coverage, typically 80%) and subcontractor fees (at 50%). It does not cover capital equipment, overhead, rent, or general operating expenses. You need separate programs such as CanExport or regional development funds for those costs.

Yes. IRAP is designed to stack with SR&ED, since SR&ED's roughly 70% tax credit applies to the portion of R&D labour costs IRAP doesn't cover (e.g., the remaining 20% if IRAP funds 80%), bringing total coverage to around 94%. Other programs such as CanExport, provincial grants, and regional development funding also combine well with IRAP, but typically because they cover different costs entirely, such as market expansion, capital equipment, or hiring outside IRAP's categories, rather than stacking on the same expense base. Our clients average 4-6 active grant programs simultaneously by sequencing funding this way.

IRAP funding is non-repayable, meaning you do not pay it back regardless of project outcome. However, you must demonstrate that you made a genuine effort and followed the approved project plan. If your project pivots significantly mid-stream, your ITA can typically process an amendment to the contribution agreement. Abandoning a project without cause or misusing funds can affect your eligibility for future NRC programs.

Check If You Qualify for IRAP Funding

Our team has helped Canadian businesses secure over $865,000 in IRAP funding. Start with a free eligibility assessment. No obligation, no cost.

Related Grant Programs

SR&ED Tax Credits

Claim 35-64% of R&D expenses as tax credits. Stackable with IRAP.

Learn more

RTRI

Up to $5M for prairie businesses affected by U.S. tariffs.

Learn more

CanExport

Up to $75K for international market expansion activities.

Learn more

See All the Grants You Qualify For

IRAP is just one of hundreds of government funding programs available to Canadian businesses. We map the full stack you qualify for — federal, provincial and regional — and tell you which are actually worth your time.

This guide is maintained by Impact Applications Inc. Last reviewed: August 12, 2026. Information is provided for educational purposes and may change. Always verify program details with the official NRC IRAP website.