IRAP Funding: The Complete Guide to Canada's #1 R&D Grant Program
Program Details
Key information at a glance
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 500 or fewer FTEs developing innovative technology in Canada.
Annual Budget
~$414 million
Firms Funded Annually
~3,362
Funding Type
Non-repayable (grant)
Typical First Award
$75,000 – $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 helped Canadian small and medium-sized enterprises (SMEs) 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.
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
$50K to $10M+
The core IRAP stream for larger R&D projects. Covers multi-phase 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
What IRAP Covers
Eligible Costs
- Salaries and benefits — 60% to 80% coverage
- Subcontractor 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
- Financially stable with capacity to co-invest
- Developing innovative technology in Canada
- Project involves technological uncertainty
Project Must Demonstrate
- Technology innovation or advancement
- Viable path to commercialization
- Economic benefit to Canada
- Team with capacity to execute the project
NOT Eligible for IRAP
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.
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.
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.
Build Your ITA Relationship
Most ImportantCRITICAL 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.
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 — 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.
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.
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
SR&ED Alone
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.
$865,000 in IRAP Funding Secured
Real results from Impact Applications clients who used IRAP as part of a broader grant strategy.
Bitcoin Well
$380K IRAP
2 projects: $130K + $250K
Read case studyVantEdge
$200K IRAP
$501K total across 9 programs
"Impact Applications helped us navigate the IRAP process and secure funding across multiple programs."
— Glenn Moore
Top Dish
$285K IRAP
3 IRAP grants, $427K total across 10 programs
Read case studyThe 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.
IRAP Frequently Asked Questions
Answers to the most common questions about the NRC IRAP program
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.
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