Program information

On this page

• Program objective
• Financial assistance
• What can be funded (eligible activities and costs)
• What cannot be funded (ineligible activities and costs)
• Other funding considerations

Program objective

PrairiesCan makes strategic investments in growing companies through its Business Scale-up and Productivity (BSP) program, in both established sectors creating value now and emerging sectors growing quickly. BSP supports high-growth businesses that are scaling up and producing innovative goods, services or technologies.

Through this program, PrairiesCan seeks to:

• Help high-growth businesses to scale up and expand.
• Support demonstration and the commercialization of new technologies.
• Encourage the early adoption or adaptation of leading-edge technologies and processes to improve productivity.
• Increase businesses’ capacity to grow through market diversification and entry into global markets.

Financial assistance

BSP offers interest-free, repayable funding to incorporated businesses up to 50% of eligible project costs:

• minimum $200,000; maximum $5 million per project from PrairiesCan†
• minimum 50% of total project funding required from confirmed non-government sources
• you must confirm all non-PrairiesCan sources when you apply and once again after project approval
• Applicants are limited to one successful BSP project per organization per calendar year

†Maximum $10 million to any 1 organization

What can be funded (eligible activities and costs)

Eligible activities

The following are eligible activities for high-growth businesses looking to support or accelerate their growth:

• Productivity improvement, which includes:
  • acquiring, adapting, and adopting new technologies and processes
  • process re-engineering
  • improving manufacturing capacity
• Business scale-up, which includes:
  • developing or expanding markets
  • adopting best management practices, processes and systems
  • developing business opportunities
• Technology commercialization, which includes:
  • growing and diversifying markets through late stage product development
  • technology showcasing and demonstration (Technology Readiness Levels 7-9 as defined by Innovation, Science and Economic Development Canada)

The maximum project duration is 3 years and, in addition to the eligible activities above, the project must focus on 1 or more of the following priority areas:

• Advanced manufacturing. This is defined by developing and adopting innovative technologies to:
  • create new products
  • enhance processes
  • establish more efficient and cost-effective ways of working
• Clean resources. This refers to transitioning from the old resource economy into a new resource economy. It is where innovation drives economic and environmental competitiveness in the energy, mining and forestry sectors. It leverages Canada’s natural resources advantage to transition to a low-carbon economy.
• Clean technology. This refers to any process, product or service that reduces environmental harm in order to:
  • control costs
  • meet new regulations
  • improve global competitiveness
  • protect climate, water, land and air
• Digital industries. This includes:
  • information and communication technology (ICT)
  • digital and interactive media
  • content industries
• Health/bio-sciences. This includes a wide range of companies, such as:
  • pharmaceutical developers and makers
  • medical devices and biomedical innovators
  • digital health solutions producers
  • precision health
  • disruptive technologies, such as:
    • artificial intelligence (AI)
    • big data analytics
    • 3-D printing
    • robotics
    • nanotechnologies
• Natural resources value-added processing. This includes processing natural resources in the energy, mineral or forestry sectors. This adds value to the raw materials.
• Value-added agriculture. This is a complex and interdependent sector that includes agriculture, fisheries and aquaculture. It also includes food and beverages processing.

Note that preference will be given to proposals with a demonstrated focus on:

• Food and ingredients processing - includes businesses producing plant-based food and ingredients
• Zero emission heavy equipment vehicles - includes manufacturers of urban and intercity buses, fire trucks, motorhomes, recreational vehicles, trailers, mobile agricultural, construction and mining equipment, and their associated suppliers. Related technologies include battery electric and hydrogen fuel cell drives, electrification of ancillary systems, material light weighting and others.
• Critical minerals processing - includes companies and service providers that process or create value added materials and/or products from critical minerals, such as advanced batteries, permanent magnets, solar panels, wind turbines, small modular reactors, defence and security technologies, semiconductors and consumer electronics.

Eligible costs

Eligible costs are incremental, reasonable, and essential to carrying out the eligible project activities. For example:

• capital costs (equipment, machinery)
• labour (wages, benefits)
• marketing
• costs related to intellectual property
• technology development and commercial demonstrations
• professional, advisory, technical services

Applicants are encouraged to consider Canadian materials and content, where such materials and content are competitive and available.

What cannot be funded (ineligible activities and costs)

Costs deemed unreasonable, non-incremental and/or not directly related to project activities, for example:

• basic and applied R&D (Technology Readiness Level 1-6)
• land acquisition and goodwill
• salary bonuses and dividend payments
• entertainment expenses
• refinancing of existing debts
• amortization or depreciation of assets
• lobbying activities

Donations, dues and membership fees are ineligible.

Other funding considerations

Financial assistance from government programs may have tax implications for an organization. Be advised that it might be treated differently than grants and loans from other sources. We recommend that applicants get advice from a qualified tax professional.

Talk to your accountant and/or Canada Revenue Agency to understand how BSP funding could affect your taxes or other current or future funding agreements (such as taxable income, Scientific Research and Experimental Development Tax Incentive Program (SR&ED) tax credits).

SR&ED credits or other similar federal or provincial tax credits expected to be received within the project scope/timeline for project activities will be considered to be other government assistance. This may require PrairiesCan to reduce its funding to maintain the level of government assistance at 50%. Where possible, exclude SR&ED eligible costs from your application.