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Conditionally Repayable Contribution


Category:Grants and subsidiesNational:8
Regional:17Amounts:$10,000 to $500,000

Often, when the government invests in your business, the program has a built-in protection for you. In this case, you might be required to pay back the amount only if the venture proves successful. It's like having a really nice venture capitalist invest in your company, but only wanting a return on the investment if your project is successful and profitable.

Repayable contribution programs offer up various avenues of access to various funds for small businesses. Some programs take the form of interest-free, unsecured repayable loan, where all or part of the loan is repayable or conditionally repayable depending on the terms and conditions of the contribution agreement. On the other hand, some programs take care of up to 50 percent of eligible cost for new enterprises, modernization or expansion projects. These costs include start-up costs and capital costs. Furthermore, any related operational costs, involving activities such as job skills training, industry related courses, marketing, product innovation, productivity enhancement, or quality assurance could meet the criteria for eligibility to receive up to 75 per cent financing or to a contribution limit of $500,000.

At times, the government may provide funds through partnership programs to encourage cooperation between unions and employers in finding ways to work together. There are some programs that showcase the government's commitment to specific industries. These programs assist by helping with lowering costs, improving productivity, efficiency, and product diversity. Other repayable conditional programs exist to ensure the continuance of strategic R&D being undertaken by national aerospace and defence companies.

For example, the CSBF program helps small businesses with improvements, expansions and equipment upgrades by allowing businesses to gain access to much needed loans. Also, this program helps to stimulate economic growth and providing jobs to Canadians. Small businesses with a gross income of less than $5 million are eligible for this program that is applicable through your local financial institution. Successful applicants can expect to receive up to a maximum of $500,000.

Find out if you qualify for a Conditionally Repayable Contribution

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