NRC IRAP: Industrial Research Assistance Program
Complete guide to NRC IRAP 2026: up to $1M in non-repayable funding for innovative Canadian SMEs. Eligibility, ITA process, application tips, and approval timeline.
Quick Facts
| Program | NRC IRAP |
| Amount | $50,000 – $1,000,000 |
| Type | Non-Repayable Grant |
| Administered by | National Research Council of Canada (NRC) |
| Deadline | Rolling — no fixed deadline |
Overview: NRC IRAP: Industrial Research Assistance Program
The Industrial Research Assistance Program (IRAP) is Canada's premier federal funding program for technology innovation in small and medium enterprises (SMEs). Administered by the National Research Council of Canada (NRC), IRAP provides both financial support and access to a national network of Industrial Technology Advisors (ITAs) who work directly with your business to accelerate technology development.
Unlike many grants that reimburse after the fact, IRAP provides proactive support: an ITA meets with your team, evaluates your project, and co-develops a funding plan before any application is submitted. This white-glove service is unique among federal programs and dramatically increases approval rates for businesses that engage early.
IRAP is particularly valuable for product development, process improvement, prototype development, and technology commercialization. The program has supported over 10,000 companies annually and injected hundreds of millions into Canada's innovation economy.
Eligibility Requirements
Your business must meet these criteria to qualify. Review each requirement carefully before applying.
What the Program Covers
❌ Not Eligible
- Capital equipment (generally)
- Marketing, sales, or business development costs
- Manufacturing or production costs
- Overhead not directly tied to R&D
- Costs incurred before ITA engagement
How to Apply: Step-by-Step
Visit the NRC IRAP website to find your regional Industrial Technology Advisor. Every region has dedicated ITAs. This is step one — you cannot apply directly without ITA involvement.
Schedule a free discovery call or meeting with your ITA. Bring a description of your technology challenge, current team size, and goals.
The ITA assesses whether your company and project meet IRAP criteria. This is informal — think of it as a warm consultation.
Work with your ITA to define the specific R&D activities, timeline, and budget for the proposed project.
Your ITA guides you through completing the application, which includes project description, budget breakdown, and expected outcomes.
NRC reviews the application. The ITA may come back with clarifying questions.
If approved, NRC issues a Contribution Agreement outlining the exact funded activities, eligible costs, and payment schedule.
Submit claims for eligible costs as work progresses. NRC reimburses based on verified expenses.
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Shop NSO Products Get Free QuoteFrequently Asked Questions (15 Questions Answered)
▶Is IRAP a grant or a loan?
IRAP is a non-repayable contribution — it is a grant. You do not repay the funds as long as the project activities are completed as agreed.
▶Can a startup apply for IRAP?
Yes. Startups are eligible as long as they are incorporated in Canada, have employees on payroll, and have an active R&D project. Many early-stage tech companies receive IRAP.
▶What's the minimum number of employees required?
There is no stated minimum, but in practice companies with at least 2-3 full-time employees are much more competitive. Sole proprietors with no employees rarely qualify.
▶Can we apply for IRAP and SR&ED at the same time?
Yes — IRAP and SR&ED are complementary. You can use IRAP funding for wages and also claim SR&ED tax credits on the same expenses (though you cannot double-claim the exact same dollar). Many companies combine both programs.
▶Does IRAP cover software development?
Yes. Software development is one of the most common IRAP project types, especially for SaaS, AI/ML, fintech, health tech, and similar innovation projects.
▶How long does IRAP approval take?
From first ITA contact to contribution agreement, expect 2-4 months minimum. Start engagement at least 6 months before you need funds.
▶Is there a limit to how many times you can get IRAP?
No formal limit. Many companies have multiple IRAP projects over their lifetime. Returning applicants with a track record of delivering on previous IRAP projects have higher success rates.
▶Can we hire students or interns with IRAP?
IRAP has a separate Youth Employment Program (YEP) that specifically funds wages for post-secondary students and recent graduates working on R&D. This is often easier to access than the main stream.
▶What industries benefit most from IRAP?
Software/tech, life sciences, cleantech/environmental, advanced manufacturing, agricultural technology, and AI are the most common. But any industry with genuine technology development is eligible.
▶What is an ITA?
Industrial Technology Advisors are NRC employees with technical and business expertise. They are your primary contact throughout the IRAP process and serve as advocates for your project within NRC.
▶Can a foreign-owned Canadian subsidiary apply?
Yes. As long as the company is incorporated in Canada and the R&D is performed in Canada, foreign ownership does not disqualify you.
▶What happens if our project changes after approval?
You must notify your ITA and request a project amendment. Significant deviations from the approved scope can affect funding, so keep your ITA informed of any pivots.
▶Is there an IRAP application portal?
Applications are managed through your ITA — not a public portal. The ITA submits and tracks applications on your behalf through internal NRC systems.
▶How much of eligible costs does IRAP cover?
IRAP typically covers 50–80% of eligible project costs. The exact percentage depends on the project type, company stage, and available budget.
▶What documentation do I need?
Business incorporation documents, financial statements (last 2 years), CRA business number, project description, team bios/resumes for key personnel, and a detailed budget breakdown.
Common Mistakes That Get Applications Rejected
- Waiting too long — IRAP requires proactive ITA engagement months before you need funds
- Framing the project as 'marketing' or 'business development' rather than technology development
- Not having employees on payroll — IRAP funds labour costs, so contractors-only structures often don't qualify
- Submitting costs incurred before the contribution agreement is signed
- Poorly documenting R&D activities — NRC requires clear evidence of technical uncertainty and systematic investigation
- Not combining IRAP with SR&ED — leaving significant tax credits unclaimed
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