Innovation Growth Program to support SMEs (Canada)

The IGP will support SMEs in the development and growth stages of the business life-cycle to reduce the risks associated with the commercialization of innovative products and processes, accelerate growth and strengthen their financial position so they can secure future funding to build their Manitoba-based business.

Objectives 

• The objectives of the program are to:
  • Commercialize innovative products or processes
  • Leverage private sector investment in new products
  • Create economic growth
  • Create jobs
  • Grow exports

Funding Information

• The IGP provides a non-repayable grant of up to $100,000 per project to cost share eligible expenses on a 50/50 cost shared basis.
• Project activities must be completed (incurred and paid) within one year of the application intake closing date.
• At least 50 per cent of eligible project costs must be supported by non-government sources and funding from non-government sources must be confirmed at the time of application.
• Funding is capped at $100,000 per new project per corporation, including any affiliated corporations (same controlling shareholder or group of shareholders). An applicant may only have one active project in process at any given time.
• Eligible applicants will be required to enter into a funding agreement with Manitoba Business, Mining, Trade and Job Creation.

Eligible Costs

• Legal fees associated with registration of intellectual property
• Designing and building of commercial scale prototypes
• Tools, moulds
• Testing costs, certifications
• Third party advisory or technical services
• Business to business tradeshows or events intended to secure distributors
• Internal labour of net new Manitoba hires directly working on the project (capped at 50% of total funding received under IGP)
• Note: Eligible internal employee labour costs are limited to salaries and wages pertaining to net new hires where a T4 is issued, and support is capped at 50% of IGP funding provided.

Ineligible Costs

• Advertising
• Land and buildings
• Equipment
• Owner salary or dividends
• Inventory
• Primary research and development
• Business registration and incorporation costs
• Costs for entertainment, meals, alcohol, lodging or per diems
• Shipping expenses
• Professional dues, membership fees
• Financing charges and taxes
• Business plans
• Website development
• Costs not directly attributable to product development or commercialization
• Activities relating to productivity improvements

Eligible Activities 

• Eligible applicants can apply for the following commercialization activities under IGP:
  • building commercial scale prototypes
  • testing, trial runs in an operational environment
  • obtaining certification, and registering intellectual property
  • tooling may be eligible if it is required as part of the prototyping process
  • adapting commercially viable products for a new market
  • market development or expansion activities
  • commercial scale up activities, such as testing, obtaining certifications, packaging, translation, etc.

Eligibility Criteria

• Applicants must meet the eligibility criteria at the time of application for the IGP.
  • For-profit, taxable Canadian Controlled Private Corporations with a permanent establishment in Manitoba that pay at least 50% of total salaries and wages to Manitoba resident employees.
  • Annual revenue of $15 million or less, or fewer than 100 full time equivalent employees, including its affiliates on a consolidated basis.
  • Demonstrate owner investment of $25,000 in cash equity invested in the business prior to application. Cash equity is defined as common or preferred share capital and/or retained earnings.

Ineligible Applicants

• Not-for-profit organizations.
• Professional practices which are regulated by a governing body of the profession under an Act of the Legislature.
• Business operations primarily earning passive income.
• Crown corporations, municipalities, towns and cities, or organizations owned or controlled by one of those groups
• IGP is intended to support business ventures that do not qualify for other forms of Government of Manitoba financial assistance. Depending on the nature of the project, companies that qualify for assistance through other Government of Manitoba financial assistance programs will be directed to apply under those programs first.

Evaluation Criteria

• The review panel will evaluate the ability of all applicants to achieve IGP objectives using the following selection criteria:
  • Quality of The Project
    • Demonstrates a clear and comprehensive description of the proposed innovation;
    • Demonstrates clear and focused objectives and includes a work plan with appropriate methodology, timelines, and deliverables;
    • Demonstrates that the project is scientifically sound, technically feasible, and shows promise to generate new knowledge or to apply existing knowledge in an innovative manner; and
    • Demonstrates innovation and includes key features and benefits that offer an advantage over the competition.
  • Market for the Innovation
    • There is a defined market need, sufficient market size, and/or evidence of market growth;
    • There is an assessment of risk and evidence of plan to mitigate the risks;
    • Demonstrates a comprehensive industry assessment has been conducted and identifies key competitors;
    • Demonstrates the proposed innovation has key features and benefits that offer an advantage over the competition;
    • Demonstrates the likelihood of broad customer acquisition in a large market or market dominance in a narrow market segment;
  • Management Capacity
    • Demonstrates a strong lead champion with the capacity to guide the project to completion;
    • The team has the technical, managerial, financial, business, and legal expertise relevant to their respective industry that will enable them to move the proposed innovation to market;
    • Demonstrates an Intellectual Property strategy for the proposed innovation that is appropriate for their respective sector or industry (if necessary).
  • Commercialization Plan and Business Model
    • Demonstrates an adequate financial and commercialization strategy with the capacity, resources, and expertise to move the innovation to commercial markets;
    • Demonstrates that the applicant’s go-to-market plan includes the necessary equipment and infrastructure required to move the proposed innovation to market;
    • Demonstrates the applicant has adequately identified and addressed the challenges and risks of commercialization (including technical challenges and anticipated reaction of large competitors); and
    • Demonstrates a realistic and coherent timeline with achievable milestones and deliverables.
  • Investments Secured
    • Demonstrates that the need for the financial request from IGP is reasonable given the project costs outlined in the budget;
    • Demonstrates a reasonable level of matching funds to complete the proposed project.
  • Benefits to Manitoba
    • Demonstrates that the project will lead to economic development benefits, including:
      • Number of jobs created;
      • Growth in company payroll;
      • Sales targets;
      • Export targets;
      • Increased industry competitiveness;
      • Incremental capital investment.

Application Requirements 

• Submissions to the program must include:
  • A completed IGP Application Form in Word format.
  • A copy of the corporation’s most recent T2 tax return and year-end Financial Statement including balance sheet and income statement of the applicant (for the last fiscal year) or a completed Start-up Letter.
  • A current Balance Sheet and Income Statement of the applicant (no older than three months).
  • Proof of confirmed funding from all other sources at the time of application, including government and non-government (non-government funding must represent at least 50 per cent of the proposed project costs).
  • Other relevant information, such as business plans, marketing plans and market validation studies, may be included in support of the application.

For more information, visit Government of Manitoba.