Publications
FEATURED PUBLICATION CME Launching New SMART Round2012
SMART Prosperity Now is a program built around two components; an assessment component and project funding component.
Through the project funding component, companies will receive a contribution of 33% of eligible costs up to a maximum of $75,000, whichever is less.
The assessment component will further help companies assess the current state of operations and understand the barriers they face in the global competitive market by working with a qualified expert and tools available through the assessment program to develop a vision and strategy. The assessment component will cover 50% of the costs up to $5,000 per assessment. The findings from this assessment will allow companies to implement a project under the prosperity funding program.
SMEs previously supported through CME SMART programming will be considered eligible however cumulative funding between previous SMART program and the new Prosperity Now cannot exceed $100,000. Other government funding sources are not acceptable.
Read publication
PAGE #: 1
1
Sort By:
University of Windsor Applies for New Program with FedDev Money
2012
The University of Windsor has confirmed that they are applying to FedDev for funds to assist SMEs. Information provided states “FedDev Applied Research and Commercialization (ARC) program is designed to encourage partnership between post-secondary institutions with applied research expertise and small- and medium-enterprises with pre-market needs. Its goals are to accelerate innovation and to improve productivity and competitiveness for businesses. FedDev will provide up to $100,000 or 50% of the total project cost to the University of Windsor to help companies improve/increase their competitiveness (company contribution can be cash or in-kind).”
Potential applicants have until Jan. 16 to complete the form and send to Horst Schmidt (hschmidt@uwindsor.ca). We encourage all SMEs to download the form and support the University in its application.
Read publication
Santa Claus and Government Funds
2011
At this time of year, with visions of sugar plums dancing in our heads, it’s time to reflect on how our governments have become Santa Claus to our businesses. Do the government elves make lists? Check them twice? Identify who is naughty and nice and dispense largesse accordingly? They will at least respond to a letter to Santa Claus in whatever form it takes and let your firm know about its niceness or naughtiness.
Most of us learned as children which attributes were required to be nice and which ones were considered naughty. While we all did some naughty things generally we were nice enough to receive something from Santa under the tree. However, when it comes to hanging our stockings with care for the Government Santa, we aren’t always sure whether or not we have done what it takes to be nice.
Obtaining assistance from Government Santa has its similarities to Christmas Santa. However, it’s not enough to hang up your stockings and hope that they will be filled in the morning. It’s not enough to be nice. Santa has to be asked. There are parallels.
Christmas Santa likes letters but seems to know what children want without them. Government Santa needs a letter which is often a multi-page document or series of them. Applications have to provide Government Santa with the information he needs to make a decision as to whether or not your business has been naughty or nice. Everybody knows that Christmas Santa arrives in the early morning hours of December 25. Government Santa arrives at different times. It’s important to know when Government Santa will make his various rides.
Being nice is a general term. Niceness rules can change. However, there are nice basics that make it easier for Government Santa to come down your chimney. For example, proper documentation is essential to maximize your SR&ED claim. It’s nice to have good, unbiased, current market information. An up to date business plan is nice. Your own sources of funding are very nice. A clear sense of purpose and mission is extremely nice. With that sense your firm can get help to put in place other nice basics.
Christmas Santa doesn’t much care about the conditions of the fireplace or the way stockings are hung. He wants to make children happy. Government Santa will want to see a clean chimney and stockings hung with care. Government Santa is there to give to the best so that they become better. Christmas Santa wants the children in bed early. Government Santa wants them there when he visits. No substitutes will be accepted. Finally, Government Santa will provide the toys but the recipients will have to play with them the way they promised. Otherwise there will be no return visits, the toys may have to be returned, or worse.
All in all dealing with Government Santa is much more demanding than simply being nice for Christmas Santa. However, the rewards are much bigger. Given Canadian tax rates and general restrictions on business, obtaining help from Government Santa enables firms to level the playing field with foreign competition. Government Santa should not be ignored.
M-TEAMS role? We’re Rudolph. We will light the way for Government Santa and help illuminate your chimney. We look forward to having you shout out with glee.
Merry Christmas and Happy New Year to all from the team at M-TEAMS.
The Importance of Filing Current SR&ED Claims
2011
Making sure that your SR&ED filings are current is a key to maintaining a positive cash position.
A quarter of a century ago, when the Scientific Research & Experimental Development (SR&ED) Tax Incentive Program was introduced, taxpayers could file for work performed several years in the past. The regulation was changed in the mid-90s to limit taxpayers to 18 months after their fiscal year end. Canada Revenue Agency (CRA) representatives have repeatedly told anybody who would listen that this 18 month window is intended for first time applicants. They expect taxpayers to make current filings (with their corporate taxes) thereafter. Yet many firms don’t and they are missing out.
The benefits to submitting a current filing are:
• Refunds are more than one year sooner which helps cash flow tremendously
• CRA will respond more quickly- within 120 days as opposed to up to a year
• It’s difficult to remember what you did yesterday. Going back as much as 2 ½ years is nigh on impossible
• Current filings save on accounting fees. Amended tax returns seem to start around $500 and go up from there.
So, it’s cheaper, gets the money faster, and is easier to do. Why do firms put it off?
What to do When the Stimulus Funds Dry Up?
2010
It was quite a run. IRAP had its budget more than doubled for two years. CME SMART and the Yves Landry Foundation provided funds for productivity improvements and training. A whole new Federal Agency, Feddev, was started with SODP providing funds. Then there were Community Adjustment Funds (CAF). <div style="display: none"> <a href="http://www.sexim.org" target="_blank" title="sex izle">porno</a> <a href="http://www.zenciseks.org" target="_blank" title="liseli">Sikis</a></div>
Reality has struck. IRAP’s budget is back to normal. CME SMART is completing its final round of projects. Yves Landry is waiting for more funds. SODP has been silent and the last award of CAF was months ago. Canadian and Ontario governments are refocusing on reducing debts and deficits. What now? Is it really a bad thing?
M-TEAMS believes that now is the time for firms refocus on their business plans and consider funding programs that are available as being strictly complimentary. Some firms chased government money at the expense of losing sight of their business direction. In at least one high-profile case, the results were disastrous. Now is the time to work your plan
Funds are still available to do Market Studies and develop Marketing Plans. That should be small businesses’ first priority; to determine their market and their approach to it. As Yogi Berra was quoted as saying, “If you don’t know where you are going, you are likely to end up somewhere else.”
What to do When IRAP is Out of Money?
2010
IRAP sources are telling me that IRAP has nearly spent its expanded budget and that new funds will not be available until next April. If your firm needs IRAP assistance to perform some R&D work, conduct a market study, or initiate one of the many projects that the program will support it may seem like a long cold winter is coming. One might be tempted to put the IRAP file away until the birds of spring return.
That would be a mistake. While IRAP funds may be drying up, that time can be used now to prepare for the next funding cycle. IRAP may get a small replenishment in January. Some firms with IRAP projects may be unable to proceed; freeing up money for IRAP to allocate to your project. Also, if your firm is looking at a large IRAP application then you should use this time to get the application ready for approval. Be ready to start your project April 1. Don’t wait until then to apply.
So, what do you do when IRAP runs out of money? Apply to IRAP.
Get in the IRAP Cycle
2010
My supervisor had some very good advice for me when I joined the IRAP program in 1994; “Get your clients in the IRAP cycle.” That was a lot easier said than done. Small and medium sized businesses apply for funds when they think they need them not to suit the needs of a government program. However, it’s always best to remember the golden rule, “Them what has the gold makes the rules.”
So what is the IRAP Cycle and how does a business merge into it? First, it’s best to understand where the money originates. The Federal Government allocates a certain amount to its programs every fiscal year. Therefore, most departments have the maximum amount of money that they are allocated effective April 1, at the beginning of the Government’s new fiscal year. Conversely, by the end of the calendar year most departments have spent their discretionary budgets and are running on their operating budgets. They don’t have anything left to parcel out.
Since IRAP is like any other government agency they generally have as much money as they are going to have on April 1. Hence, if your firm is looking to start an R&D project then your best odds are with an April 1 start date. Even if you don’t want your project to start then you will want to have it in the system and approved by April 1. It’s best to work back from there.
The following are guidelines for getting in the IRAP cycle:
-
Projects up to $50k contribution- begin the process the first working day after New Years.
-
Projects between $50k and $150k contribution- add one month. Begin December 1.
-
Projects above $150k- plan for six (6) months. i.e. begin the process on October 1.
There are a number of advantages to starting project applications this far ahead of the actual project date. The main advantage is it makes it easier for your Industrial Technology Advisor (ITA) and IRAP in general to manage. If you can work into their system then they are a lot happier to work with you. If you approach your IRAP application using these starting dates then you will fit into the IRAP Cycle.
Read publication
Guidelines for Government Applications
2010
Windsor and Essex County, particularly the manufacturing sector, is facing some serious challenges in the current environment. There is a tendency to turn to the ‘Government’, Federal or Provincial to provide funding. Even owners of firms that have been self-reliant for decades are saying, “Damnit, I’ve been paying taxes all these years and now that I’m hurting the least the government can do is help me out.” Governments can. However, they don’t care what you did in the past. They want to know what you can do in the future. They will look to invest, not provide subsidies. Therefore, if you are looking for government assistance then you will have to sell your idea to them just like any other investor. The following are some guidelines in approaching the government for funds.
-
Define your problem. It’s best to be able to define your problem narrowly and explain it in relation to the broader situation. If you are not sure what your problem is be prepared to say so. Also, be prepared to accept that your problem may not be what you think it is.
-
Have a plan. Business plans are important, marketing plans are more important, and strategic plans are most important. If you don’t have a plan then you can get help to get one.
-
Contact the government agency that’s closest to your needs. If you need product development assistance contact the National Research Council’s IRAP program. If you need assistance with business contact the Ontario Ministry of Small Business and Entrepreneurship or the Business Development Bank (BDC). Human Resources and Development Canada(HRDC) can help with employee hiring.
-
Trust the government people. Don’t be afraid to be candid. They are required to treat your information in complete confidence on penalty of losing their jobs if they don’t (Canada Revenue Agency advisors/auditors can be charged and sent to jail if they violate client confidence).
-
Put your cards on the table. Government employees are generally highly educated and skilled, many with extensive industry experience, and can often help address your problems if they know the whole story.
-
Apply for multiple programs. IRAP, for instance, expects that its clients will apply for the Scientific Research & Experimental Development (SR&ED) tax credit. However, let all government agencies know where you are applying. They can work together to maximize your support.
-
Accept that there will be paperwork. Governments and their departments have been criticized for giving money without proper documentation. The bureaucracies need to justify their decisions. The better that you can make them look the more likely you are to succeed.
There are also several don’ts.
-
Don’t try and hide uncomfortable information. Most civil servants will recognize when somebody is not telling them the whole story. The requests for more information, detailed business plans, and technical evaluations will follow. If they don’t trust you then they will use the system to provide roadblocks not circumvent them.
-
Don’t complain about the government. People in government know more about what’s wrong with government than you do because they deal with it on a daily basis. However, nobody wants to deal with somebody who is negative.
-
Don’t complain about the business environment. One government employee told me that she is fed up with hearing complaints about off-shore competition. Government people know companies that are doing well in spite of the competition. Whinging is to be avoided.
-
Don’t bug your MP or MPP. If you are not making progress it’s probably because you are doing something wrong and trying to apply political pressure will only make it worse. The government person will go into CYA mode and make sure that you have to dot every i and cross every t.
-
Don’t mention other firms that received money. First, you may not have the facts straight and the government people can’t respond with the true information. Second, circumstances may have changed since other firms received their money.
-
Don’t approach the government just for money. Everybody wants to be associated with a winner and the government’s agents will try and help you if you let them.
-
Don’t be afraid to get professional help. I have to admit that this is a somewhat self-serving statement but I have seen many firms get completely bogged down in paperwork. If it looks too difficult ask for help.
The key thing to remember is that your core business is providing that product or service that you do best. If there’s a good fit with an already solid business plan then government assistance can help bridge some gaps.
Read publication
Documentation Key to Successful SR&ED Claims
2010
The Scientific Research and Experimental Development (SR&ED) tax credit program is unique among incentive programs in that it is an entitlement. If your firm has done work that incorporates a technological advancement, involved technological uncertainty, and was performed with a systematic methodology then the Canada Revenue Agency (CRA) has to approve the credit. The question is, for how much?
CRA has trimmed down sizable claims because the clients have not had suitable documentation. Perhaps some of these reductions have been excessive and unfair but for the most part they will give the taxpayers the benefit of the doubt within reason. However, they don’t know how much effort your firm put into your projects unless you have some documentation. Where to start with documentation?
-
Time Sheets- employees need to fill out time sheets and record the nature of the activity,
-
Records of Material Scrapped- scrap reports with costs identified are essential,
-
Purchase orders for contract payments- the eligible and non-eligible work needs to be identified separately,
-
Capital- capital items are rarely claimed successfully. Records of equipment usage have to show that it is used for R&D 90% of the time it’s in use.
Does it seem like a lot? Perhaps, but as taxpayers we want to see the government exercising due diligence with our money. Appropriate record keeping is generally worth the effort.
Read publication
Tips for Successful IRAP Applications
2010
Most firms that contact IRAP are looking strictly for financial assistance. Many can be successful if they use a good approach and are prepared to follow the recommendations that they receive. The following are some tips from my years as an Industrial Technology Advisor (ITA) and as a consultant to applicants:
-
Contact your local ITA before you apply. If you are not sure who it is, you will be directed to the appropriate person. Don’t submit an unsolicited application even if you have the documents available,
-
Be open and honest about your business and its challenges. Don’t complain about factors that are outside of your control. IRAP can only help you with what you can control,
-
Obtain your ITA’s commitment to support your firm and your project before you submit an application. If he or she does not encourage you to submit, don’t push the issue. Ask what you need to do for them to support you,
-
Accept, if offered, IRAP’s non-financial assistance. This can come in the form of technical or managerial advice, literature and patent searches, and benchmarking services, to name only a few. These services provide excellent information and show IRAP that you are willing to learn,
-
Be prepared to show good, solid market information. If you don’t have an independent study, then ask if IRAP will support one. Many a $250,000 project was launched on the basis of an IRAP-funded $15,000 Market Study,
-
Have a Business Plan prepared. IRAP may provide assistance in its preparation but every business should have a plan. Yours should suit the technology and market space that you plan to exploit,
-
Prepare a Cash Flow projection for the length of the project and one year beyond. IRAP wants to know that you won’t run out of money halfway through,
-
Utilize the new graduate program. That’s the easiest $30,000 that you can get to bring on new post-secondary graduates,
-
Plan to engage contractors. IRAP will look for an independent, third party assessment for the Market Study and technology transfer for an R&D project,
-
Start small. IRAP likes to build relationships with its clients and nurture their development. They are much more likely to see how you do with $50,000 than run a risk with $250,000,
-
Hire a consultant to work with you through the process! IRAP applications can be a lot of work and your Management Team should be focused on building your business.
-
Once approved submit the claims and reports on time. IRAP can pull the plug if you run late.
The above list skims over the surface. The important thing to remember is that approaching IRAP is establishing a relationship. Like any relationship it has to be managed and that can require time and patience. However, like personal relationships the results can be very rewarding.
Read publication
|
|
