The aim of the Investing in Business Innovation (IBI) is for stimulating and leveraging private sector investments to serve the development and late-stage commercialization challenges of start-up businesses. This government funding for business will provide support of up to $1M in repayable loan funding at 0% interest, covering approximately 33.3% of expenses related to commercializing new products, practices or processes of start-up businesses by obtaining angel or venture capital investments.
Amount of Funding Available through IBI Canadian Government Funding
IBI provides up to $1M with a 33.3% Canadian government funding contribution based on a term sheet from an Angel or VC. The Venture Capital organization must be registered with the Canada’s Venture Capital & Private Equity Association.
Timeline for IBI Government Funding for Business
- This small business loans Ontario program was launched as a 4-year program. All activities must be completed by March 31, 2014.
- Contribution funds are released on either a monthly or quarterly basis. The amount of the release is at 33.3% of each eligible expense made in that period.
Companies Eligible for Ontario IBI Business Funding Grants
- To be eligible for these small business grants the applicant must be a registered start-up business with fewer than 50 employees that is undertaking commercialization activities in Southern Ontario with a term sheet from an Angel or VC investor, prior to the term sheet closing and the commencement of the spend.
- The applicant firm must clearly document that there is no infringement on IP and demonstrate that the project owner has sufficient rights to any IP developed or commercialized (Note: one does not have to file patents).
Expenses Eligible for Coverage under IBI Ontario Small Business Grants
The following expenses are eligible for these Small Business Funding Grants:
- Product and process applied research;
- Engineering design;
- Technology development;
- Product testing;
- Marketing studies;
- Proof of concept;
- Piloting and demonstration;
- Problem solving; and,
- Commercialization of intellectual property (IP)
Additional Canadian Government Funding Details:
- In order to be considered eligible for this funding for small business program, the applicant firm must clearly define the positive impact the project will have on both Ontario & Canada, such as: Growth, Job creation, and other effects on the community (i.e. industry, skill set of jobs created, the likelihood that growth will be fostered in other businesses, etc).
- Strong work plan with deliverables on how the expense budget is justified will be required.
- Must have cost estimates and quotes if using outside consultants.
- Spending requirements in each Federal Fiscal Year must be clearly stated – no alterations to the government fiscal year cycle will be accepted.
Looking for More on Investing in Business Innovation (IBI)?
Find IBI government funding for business information from one of our following links:
Information on Other Small Business Grants From Mentor Works
Please contact a Canadian Government Funding Expert for more information regarding this program as well as several Ontario small business grants. We also invite you to stay up to date on popular government grants for small business opportunities by connecting with us on Twitter, Facebook, LinkedIn or Google+; or by subscribing to our Canadian Government Funding Weekly E-Newsletter.