Business Scale-up & Productivity

(BSP) Program Stream

Information Session
Outline
 Overview of the Government of Canada
Innovation Program Changes
 Regional Development Agencies – WD’s role
 Business Scale-up and Productivity Program
Stream
 Eligibility
 Application and Review Process
 Elements of a Strong Application
 Contact WD
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Federal Flagship Innovation Platforms
4 Flagship Platforms
• Trade Commissioner Services
• Industrial Research Assistance Program
• Strategic Innovation Fund
• Regional Development Agencies

• Building on regional
innovation capacity
• Business-centric
• Streamlined programming
• 22 programs 2 programs

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Western Economic Diversification (WD)
• Delivers a continuum of
programs and services
supporting western small
Edmonton
and medium-sized
enterprises (SMEs) to
Calgary
innovate, compete, and
Saskatoon
engage in international
Vancouver Winnipeg
business
WD promotes the • Promotes and
development and coordinates federal
diversification of the economic development
economy in Western
policies and programs in
Canada.
the West
Business Scale-up and Productivity (BSP)
The Regional Economic Growth through Innovation (REGI)
program is a national program delivered by regional
development agencies (RDAs) across the country. It comprises
two program streams designed to fuel economic growth
through innovation and create more well-paying jobs for
Canadians.

On December 3, 2018, WD opened the first call for proposals for

the REGI Business Scale-up and Productivity (BSP) program
stream.

BSP offers repayable, interest-free funding to businesses at

various stage of development, including firms with high growth
potential, to accelerate their growth and scale-up, improve
productivity, and increase competitiveness in both domestic
5 and global markets.
BSP Objectives
• Assist firms with high-growth potential to scale up and
expand.
• Support technology 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.

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BSP Assistance
• Up to 50% of eligible project costs
• Minimum $200K; Maximum $5M/project
• Maximum $10M to any one organization
• Minimum 50% of total project funding required from confirmed
non-government sources
• All non-WD sources must be confirmed - at time of application
and after project approval
• Maximum project duration of 3 years
• After project completion - 1 year grace followed by
5 years repayment
• Interest free; No security/collateral taken

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Eligible Recipients

Applicants must meet the following eligibility

criteria:
• For-profit company incorporated to conduct
business in Canada
• Minimum of 2 years in operation in Canada
• Operating facilities located in Western Canada
• Preference may be given to SMEs (<500 full-time
employees)

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BSP vs WINN – what’s changed?
BSP WINN
Eligible Recipients All incorporated for-profit Incorporated for-profit
companies SMEs
Preference may be given
to SMEs
Years in Operation Minimum 2 years Minimum 1 year
Financial Assistance
WD Contribution Min $200K, Max $5M/ Max $3.5M/project;
project; $10M/applicant $7.5M/applicant over life
over life of the BSP of WINN
Eligible Activities Productivity Improvement; Technology
Business Scale-up; Commercialization
Technology (TRL 1-9)
Commercialization
(TRL 7-9)

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Priority Areas
Projects must support economic growth in one of
these priority areas:
• Clean Technology
• Clean Resources
• Life Sciences
• Value-added Agriculture
• Advanced Manufacturing
• Digital Technology

Economic Strategy Tables: https://www.ic.gc.ca/eic/site/098.nsf/eng/home

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Eligible Activities
Projects will be accepted that focus on
accelerating and supporting business growth
through:

• Productivity Improvement
• acquiring, adapting, adopting new technology processes
• process re-engineering
• improving manufacturing capacity
• productivity improvement

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Eligible Activities cont’d
• Business Scale-up
• market analysis, research, planning, development, and/or
expansion
• adopting best management practices, processes, and systems
• business opportunity development

• Technology Commercialization (TRL 7-9)

• late stage product development geared toward market
diversification and growth, such as technology showcasing and
technology demonstration.

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Eligible Costs
Incremental costs essential to the project.
Examples
• Capital costs (equipment, machinery)
• Labour (wages, benefits)
• Marketing
• Costs related to intellectual property
• Technology development and commercial demonstrations
• Professional, advisory, technical services

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Ineligible Costs
Costs deemed unreasonable, non-incremental,
and/or not directly related to project activities.
Examples
• Basic and applied R&D (TRL 1-6)
• Land and buildings
• Salary bonuses and dividend payments
• Entertainment expenses
• Refinancing of existing debts
• Amortization or depreciation of assets
• Lobbying activities
• Donations, dues and membership fees
Costs incurred prior to April 1, 2019 are ineligible.
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Expected Results
• WD is looking to support projects that have a
viable plan to produce strong economic
outcomes.
• Applicants must quantify, substantiate, and later
report on the following expected results:
• Number of HQP jobs created in Canada
• Number of non-HQP jobs created in Canada
• Revenue growth ($)
• Export sales growth ($)
• Business sales growth resulting from
commercialization ($) – where applicable

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Funding Disbursement / Repayment
Funding Disbursement
• If approved for BSP funding,
• WD provides funding based on submitted claims.
• WD will reimburse based on approved portion
(i.e. 50%) of eligible project costs that have been
incurred and paid.
Repayment
• After project completion, there is a one year grace
period followed by equal monthly payments over 5
years.
• No penalty for early repayment.

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 Application Process
• Call for Proposal and competitive process.
• Online application form available on WD’s website.
• Applicants are strongly encouraged to review the BSP
Application Form and Applicant Guide.
• Applications only accepted during intake period.
• One application per organization in a given intake.

INTAKE PERIOD
OPEN: December 3, 2018 CLOSE: January 25, 2019 (2 pm MST)

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Mandatory Application Requirements
 Completed application form
 Evidence of confirmed funding sources
 Detailed business plan – Section 10 of Applicant Guide
 2 years of financial statements, as well as interim
statements
 Forecasted income statements and cashflow for the
duration of the project

Incomplete applications will not be assessed or

considered for funding.

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Confirmation of Funding
Evidence of Confirmed Not Accepted as Confirmed
Funding Funding

 Funding provided by  Forecasted revenues from

applicant future activities
 Current bank statements  Accounts receivables
detailing existing cash balances  Commitments to raise equity or
or the unused portion of lines of
to obtain future bank financing
credit
 Scientific Research &
 Funding provided by third- Experimental Development
party sources (SR&ED) credit receivables
 Official letters of confirmed/
conditional funding
 Funding agreements
 Signed term sheets

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 Assessment Process
• Eligibility
• Based on mandatory BSP criteria and application requirements

• Competitive Screening Process

• Applications will be evaluated on their ability to achieve the BSP
objectives and on their relative strengths in the following areas:
• Market potential
• Management capability
• Financial capacity
• Economic benefits
• Technology readiness (Technology Commercialization projects
only)
• Applications demonstrating the highest merit and fit with BSP objectives
will undergo a detailed assessment

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 Assessment Process cont’d
• All applicants will be contacted as to whether or not
they have been selected for detailed assessment.
• If undergoing a detailed assessment, WD will request:
• detailed breakdown of project costs

• As this is a competitive process, applicants are

advised to submit a complete and thorough
application. Only the strongest applications will
continue to detailed assessment.

Not all applications undergoing a detailed

assessment will receive an offer of funding.
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Assessment Process cont’d
• A technical assessment will be conducted by
National Research Council’s - Industrial
Research Assistance Program (NRC-IRAP) for
technology commercialization projects.

• Sustainable Development Technologies

Canada and Clean Growth Hub will be
consulted on projects related to clean
technology and clean resources.

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Elements of a Strong Project

• Comprehensive and well written business plan

• Independent market assessment and/or
evidence of unmet market demand
• Clearly defined market size and opportunity
• Direct competitors are identified and assessed
• Detailed description of both the applicant
organization and project management team
• Credible financial statements accompanied by
logical and reasonable financial projections

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Elements of a Strong Project cont’d
• Demonstrated financial capacity to execute
the project and the ability to repay
• Clear alignment with at least one priority area
• Significant economic benefits/outcomes
supported by reasonable assumptions and
rationale
• Well defined IP Strategy (if applicable)
• Clear explanation as to how the productivity or
efficiency savings will enable the company to
grow and expand (if applicable)

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 Timelines
• Application period - 6 weeks
• All mandatory attachments are required at time
of application.
• Assessment Process
• Applicants will be contacted in February
regarding the status of their applications.
• Funding Decisions
• Anticipated in Spring 2019.
• Earliest project start date is April 1st, 2019.
Application volumes may impact all timelines

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Other Funding Considerations
• Consult your accountant and/or CRA to determine the
full implications of receiving BSP funding.
• Taxable Income
• SR&ED 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
other government assistance. This may require WD to
reduce its funding to maintain the level of government
assistance at 50%.

• Where possible, exclude SR&ED eligible costs from your

application.
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Working With WD
For More Information
Visit us at our website www.wd-deo.gc.ca.
Follow us on Twitter @WD_Canada.

Contact Us

• Telephone: 1-888-338-WEST (9378)

• Email

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