Frequently Asked Questions - Funding

**Frequently Asked Questions**

AI Funding in Canada

Get quick answers to your government funding inquiries.

Last updated: October 2025.

General Questions

**Q: Is this "free money"?**

**A:** It depends on the specific program:

1. Scale AI: This is a true grant, meaning you never have to repay it.

2. NRC IRAP: This is non-repayable, so you will not need to return the funds.

3. SR&ED: This functions as a tax credit, effectively returning your investment.

4. RAII: This is an interest-free loan, which you will repay at a 0% interest rate.

Even with RAII, you benefit from interest-free financing not typically available at banks.

**Q: Can I stack programs?**

**A:** Yes, you can!

However, you are required to disclose all funding, avoid double-dipping, and adhere to stacking rules.

A popular combination includes:

RAII/Scale AI (50%) along with SR&ED (35%), resulting in a 67.5% total funding.

**Q: How much paperwork is involved?**

**A:** The total effort required is approximately 50 to 75 hours, potentially resulting in a $300,000 to $500,000 return, which equates to $4,000 to $10,000 per hour.

**Q: What's the approval rate?**

**A:**

- RAII: 60-70%

- Scale AI: 50-60%

- NRC IRAP: 70-80%

- SR&ED: 85-90%

Proper preparation can improve your odds by 20-30%.

**Q: How long until I receive money?** **A:**

- RAII: Approval takes 2-4 months, with quarterly reimbursements.

- Scale AI: Approval within 2-3 months, followed by quarterly reimbursements.

- NRC IRAP: Approval in 2-4 months, with monthly or quarterly advances.

- SR&ED: Filed with your tax return and processed in 4-8 weeks.

**Q: Do I need a grant consultant?**

**A:** While it's not required, it is recommended.

Doing it yourself typically results in a 30-40% approval rate, whereas a consultant can increase this to 70-80%.

Consultants usually work based on success fees, meaning you pay only if approved.

Eligibility Questions

**Q: My company is 1 year old - can I apply?**

**A:** This depends on the program:

- Scale AI, NRC IRAP, SR&ED: No age limit applies.

- RAII: Requires at least 2 years of establishment.

**Q: I'm a sole proprietor - can I apply?** **A:** Generally, yes:

- SR&ED: Open to any business structure.

- NRC IRAP, RAII, Scale AI: Must be an incorporated entity.

**Q: We have 600 employees - are we too big?**

**A:** Not at all!

- RAII: While there is a preference for SMEs, larger companies are eligible.

- Scale AI, SR&ED: No size restriction.

- NRC IRAP: Limited to companies with fewer than 500 employees.

**Q: We're not in manufacturing/construction/logistics - can we apply?**

**A:** Yes!

While these industries are targeted, many sectors, including healthcare, agriculture, and AI adoption, are eligible.

**Q: We started our AI project - is it too late?**

**A:** It might not be too late:

- RAII, NRC IRAP: Some retroactive eligibility is available.

- Scale AI: Generally for future projects only.

- SR&ED: You can claim expenses from the current tax year.

Process Questions

**Q: Can I submit multiple applications?**

**A:** Yes, you can apply to all programs for the same project, provided you disclose everything properly.

**Q: What happens if I'm rejected?**

**A:** You can request feedback, address concerns, and resubmit your application.

Approximately 90% of rejections can be rectified.

**Q: Do I need a business plan?**

**A:** This varies by program:

- RAII, Scale AI: Yes, a business plan is required.

- NRC IRAP: Requires an informal case.

- SR&ED: Only technical documents are necessary.

 Compliance Questions

**Q: What reporting is required?**

**A:** Quarterly or annual reports are necessary, and we handle most reporting for our clients.

**Q: What if I don't meet milestones?**

**A:** Early communication is key.

Adjustments are typically granted.

**Q: Can I change my project scope?**

**A:** Minor changes are usually acceptable. However, major changes require approval.

**Q: What if my company is sold during the project?**

**A:** Notify funders immediately. Funding may be transferred to the new owner.

**Q: How long to keep records?**

**A:** A minimum of 6 years is recommended. Best practice includes digital backups.

Tax & Accounting Questions

**Q: Is the funding taxable income?**

**A:** Generally, it is not, as the funding offsets project costs.

Consult your accountant for specifics.

**Q: How does this affect my SR&ED claim?**

**A:** You must reduce your claim by the amount received from other funding sources.

**Q: Can I claim CCA on equipment?**

**A:** Yes, but you cannot claim both CCA and the SR&ED credit.

The SR&ED credit is usually more generous.

Strategic Questions

**Q: Should I do a small pilot project first?**

**A:** There are pros and cons.

Small projects pose lower risk and offer proof of concept, but allow for less total funding.

Consider a phased approach for projects over $500,000.

**Q: Can I fund multiple projects?**

**A:** Yes, you can!

A strategic approach involves spreading projects over several years to maximize eligibility.

**Q: Should I implement myself or hire a consultant?**

**A:** A hybrid approach is advisable: consultants can help with design, while your team manages operations.

**Q: Best order to apply?**

**A:** Begin with an initial consultation, then submit applications for RAII or Scale AI, followed by engaging with NRC IRAP and SR&ED.

Competitive Questions

**Q: Are competitors doing this?**

**A:** Likely, as many companies leverage government funding.

**Q: Will competitors know I received funding?**

**A:** Only general details are made public.

**Q: What if my competitor is also applying?**

**A:** This is not a concern.

Programs can fund multiple companies within the same industry.

ElevareAI Specific Questions

**Q: What are ElevareAI's fees?**

**A:** We offer two options: hourly consulting or a success fee structure.

**Q: Does ElevareAI get referral fees?**

**A:** No, we recommend based on expertise.

**Q: Can I just do the funding part without implementation?**

**A:** Yes, but we recommend the full package for optimal results.

**Q: What if I'm not in Alberta?**

**A:** We provide assistance across Canada.

**Q: How do I get started?**

**A:** Book a consultation, download a guide, or email us. There is no obligation.

Still Have Questions?

Contact ElevareAI:

📞 Phone: 403-828-7588

📧 Email: [email protected]

🌐 Website: elevareai.ca

📍 Location: Alberta, Canada

Office Hours: Monday-Friday, 8 AM - 4 PM MST.

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