In June we wrote about the Investment Cooperation Program (INC). This funding for small business program’s objective was to stimulate economic growth in developing countries. This Canadian government funding program achieved this by sharing costs that were involved in:
- Studying the viability of an investment
- Undertaking activities aimed at enhancing economic, environmental and social benefits of those investments
- Demonstrating and adapting appropriate technologies.
Depending on the project, eligible firms could receive 50-75% of cost-sharing up to $955,000 in Canadian government grants to support firms to perform Foreign Direct Investment (FDI) activities in qualifying developing countries. As it turns out, due to inconsistencies in current submissions, the INC program has been suspended for the remainder of the 2012 fiscal year.
Government Funding for Business History
The Investment Cooperation Program (INC) contributed $3.9 million in business funding grants towards the cost of feasibility studies, planning and implementation of human resources and environmental plans related to investments and technology transfers in 2011-2012. By running internal risk assessments on every project it supports, they would identify approximately 10 projects a year for financial audit to ensure the appropriate use of tax dollars.
Immediate Suspension Orders on Ontario Government Funding Program
Through preliminary audit findings conducted in March of 2012, there were irregularities suggested in some of the cases that would justify action to recover taxpayer funds. These eligible projects represent approximately 3.5% of the program’s budget.
At the end of March, the officials had finalized audit reports and confirmed the irregularities in which the Federal Government of Canada took immediate action to recover taxpayer funds that had supported these INC projects. Their plan of action to freeze the entire program has since been implemented and there has been an immediate suspension in the INC program.
Small Business Funding Grants Support
Unfortunately, the Investment Cooperation Program (INC) is expected to remain suspended until the completion of the fundamental review in 2012-2013. However, there remains various Canadian government funding mechanisms offered to your business. To learn more about these programs, please contact our Canadian Government Funding Expert or sign up for a 60 Minute Workshop. Additionally, you can follow us on Twitter or LinkedIn to receive current updates on these Canadian government funding programs.