ACOA Industrial and Technological Benefits policy
Highlights
This program is designed for businesses like yours, offering a unique chance to grow and thrive. By participating, you can access valuable contracts and investments that are tied to major defence projects. This means more opportunities for your business to supply goods, equipment, and services to large-scale projects.
Why Apply?
- Economic Growth: Secure contracts that can significantly boost your revenue.
- Job Creation: Bring new jobs to your community.
- Global Reach: Access global supply chains and new markets.
- Innovation: Invest in research and development to stay ahead.
What’s in it for You?
- Government-Backed Financing: Enjoy the security of government-supported contracts.
- Competitive Edge: Gain a foothold in the defence sector, enhancing your business’s reputation.
- Networking Opportunities: Connect with major contractors and industry leaders.
Qualifying for this program is straightforward, making it easier for your business to benefit from these opportunities. By getting approved, you position your business for long-term success and growth.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- The loan has a fixed interest rate of 3.5% per annum.
- Repayment term is up to 10 years.
- Monthly payments are required, starting one month after funds are disbursed.
Eligible Expenses:
- Purchase of equipment and machinery.
- Leasehold improvements.
- Research and development costs.
- Marketing and promotional expenses.
- Employee training and development.
Ineligible Expenses:
- Personal expenses.
- Real estate purchases.
- Debt refinancing.
- Dividends or bonuses to shareholders.
Fees:
- Application fee of $200.
- Annual administration fee of 1% of the loan amount.
- No prepayment penalties.
Qualifications
- Must be a company awarded a defence contract.
- Must engage in business activities in Canada.
- Must have contracts with the Canadian Armed Forces (CAF) or Canadian Coast Guard (CCG).
Contracts must be valued over $100 million, or between $20 million and $100 million for possible policy application.
Disqualifications:
- Contracts valued under $20 million.
Description
This program is a great opportunity for your business. It ensures that companies awarded large defence contracts do business in Canada, matching the value of their contracts. This means more work and growth for Canadian businesses like yours.
Here’s what you can gain:
- Economic Growth: Your business can benefit from major defence projects, leading to more jobs and industrial growth in your region.
- Access to Global Supply Chains: You can connect with global contractors and suppliers, opening doors to new markets and opportunities.
- Innovation and Development: The program encourages investments in research and development, boosting your business’s innovation potential.
- Skills and Training: It also promotes skills development and training, helping your workforce stay competitive.
By participating, your business can tap into significant opportunities, ensuring long-term growth and sustainability. This program is designed to help businesses like yours thrive in the defence sector.
Program Steps
Gather Required Documentation:
- Financial statements
- Business plan
- Details of intended use of funds
- Quotes for equipment or subcontractor costs
- Any previous contracts or relevant experience
Prepare a Value Proposition:
- Outline the economic benefits your business will bring to Canada
- Highlight how your business supports the growth of the defence sector
- Include plans for research and development, exports, and skills development
Contact ACOA for Guidance:
- Reach out to ACOA Business Information Services at 1-888-576-4444 or via email
- Discuss your business needs and get advice on the application process
Engage with Local Industry Partners:
- Connect with local universities, colleges, and regional associations
- Identify potential subcontractors and suppliers
Complete the Application Form:
- Fill out all required sections of the application form
- Ensure all information is accurate and complete
Submit the Application:
- Send your completed application along with the required documentation to the appropriate ACOA contact
Follow Up:
- Monitor the status of your application
- Respond promptly to any requests for additional information
Review and Finalize:
- Upon approval, review the final terms and conditions
- Finalize any agreements with subcontractors and suppliers
Implement the Project:
- Begin work according to the approved plan
- Keep detailed records of all expenditures and progress
Report Progress:
- Provide regular updates to ACOA on project milestones and outcomes
- Submit any required financial reports and documentation