PrairiesCan — Aerospace Regional Recovery Initiative
Highlights
This program is designed for businesses like yours in the aerospace sector. It offers up to $10 million in financing for projects that aim to green operations, improve productivity, and strengthen commercialization. The loans are interest-free and repayable over five years, starting one year after project completion. This makes it a cost-effective way to fund your growth.
What You Get:
- Up to $10 million in financing
- Interest-free repayable loans
- Non-repayable funding for non-commercial projects
The funds can be used for:
- Transitioning to greener operations
- Improving productivity through advanced manufacturing and AI
- Commercializing innovative products and services
- Workforce development and training
By participating, you can enhance your business's competitiveness, integrate into global supply chains, and contribute to a more inclusive and sustainable economy. The application process is straightforward, and your business is well-positioned to benefit from this support.
Financing Details
Type of Financing:
- Commercial Projects: Interest-free repayable loans.
- Non-Commercial Projects: Non-repayable grants.
Repayment Terms for Commercial Projects:
- Repayment Start: One year after project completion.
- Repayment Duration: 60 equal monthly payments.
- Early Repayment: Allowed without penalty.
Eligible Expenses:
- Capital costs (equipment, machinery)
- Labour (wages and benefits)
- Marketing
- Intellectual property costs
- Technology development and commercial demonstrations
- Professional, advisory, and technical services
Ineligible Expenses:
- Basic and applied R&D (Technology readiness level 1-6)
- Land and buildings
- Salary bonuses and dividend payments
- Entertainment expenses
- Refinancing of existing debt
- Amortization or depreciation of assets
- Lobbying activities
- Donations, dues, and membership fees
- Goodwill
- Purchase of any assets for more than fair market value
- Any cost deemed unreasonable, non-incremental, or not directly related to project activities
Fees:
- No specific fees associated with the program.
Qualifications
- Must be a small or medium-sized enterprise (SME) or a not-for-profit organization providing services to SMEs.
- Business must be operating in the aerospace industry.
- Indigenous businesses and organizations are invited to apply.
- Must be located in the Prairie provinces.
- Must be exploring opportunities to expand, improve productivity, green operations, strengthen supply chains, or train more people for the aerospace sector.
Must be inclusive and focused on building a stronger Canada.
Disqualifications:
- Businesses not operating in the aerospace industry.
- Businesses located outside the Prairie provinces.
- Projects involving basic and applied R&D (Technology readiness level 1-6).
- Costs related to land and buildings.
- Salary bonuses and dividend payments.
- Entertainment expenses.
- Refinancing of existing debt.
- Amortization or depreciation of assets.
- Lobbying activities.
- Donations, dues, and membership fees.
- Goodwill.
- Purchase of any assets for more than fair market value.
- Any cost deemed unreasonable, non-incremental, or not directly related to project activities.
Description
This program offers your business a chance to grow and thrive. You can receive up to $10 million for your projects. This money can be used to make your operations greener, improve productivity, or help you enter new markets.
For commercial projects, you can get up to 75% of the project costs covered with interest-free loans. You start repaying one year after the project is done, with equal payments over five years. You can also repay early if you wish.
For non-commercial projects, you can get up to 90% of the costs covered, and you don't have to repay this money. However, 10% of the funding must come from non-government sources.
This funding can be used for various activities, such as buying equipment, paying wages, marketing, or developing new technologies. This program is a great opportunity to boost your business and make it more competitive.
Program Steps
Gather Necessary Documentation: Prepare the following documents to support your application:
- Financial statements
- Business plan
- Details of intended use of funds
- Quotes for equipment or services
- Confirmation of other funding sources (e.g., bank statements, funding agreements)
Complete the Application Form: Fill out the application form provided by the regional development agency. Ensure all sections are completed accurately.
Submit the Application: Submit your completed application form along with the required documentation to the appropriate regional development agency.
Await Evaluation: Your application will be reviewed based on the program's objectives and criteria. Be prepared to provide additional information if requested.
Receive Confirmation: If your application is approved, you will receive confirmation of funding, including details on the amount and terms.
Agree to Terms: Review and agree to the terms of the funding, including repayment schedules if applicable.
Receive Funds: Once all terms are agreed upon, the funds will be disbursed to your business account.
Implement the Project: Use the funds to carry out your project as outlined in your application. Ensure you follow the approved budget and timelines.
Report Progress: Regularly report on the progress of your project to the regional development agency, including any financial updates and milestones achieved.
Repay the Loan: If you received a repayable loan, start repayment according to the agreed schedule, typically beginning one year after project completion.