AFO · Head-to-head
Both are federal programs but they sit in completely different conversations. CSBFP is a government-guaranteed bank loan for equipment, leasehold, or real property at Prime + 3%. IRAP is a non-repayable contribution program covering up to ~80% of internal technical salaries on approved R&D projects, paired with an NRC industrial technology advisor. The use case decides; they don't compete.
Side by side
The matrix below pulls directly from the catalog. Each row shows the same data point across both programs so you can spot the differences at a glance.
| Attribute | CSBFP: Canada Small Business Financing Program | NRC IRAP: Industrial Research Assistance Program |
|---|---|---|
| Capital type | Government-backed debt | Government grant |
| Family | Debt | Grants & refundable tax credits |
| Size range | No floor, $1,150,000 | $50,000, $10,000,000 |
| Typical cost | Prime + 3% (variable) or Residential mortgage rate + 3% (fixed). 2% one-time registration fee. | Non-repayable contribution covering up to ~80% of internal technical salaries and ~50% of contractor costs on eligible projects. |
| Speed to close | Weeks to a few months | Weeks to a few months |
| Eligibility | Canadian business (including non-profit, charitable, and religious organizations that carry on a business, eligible since June 30, 2021) with gross annual revenue of $10,000,000 or less. Farming businesses are excluded. | For-profit incorporated Canadian SME with under 500 staff and a project with clear technical innovation plus a credible commercialization plan. Pairs financial assistance with NRC technical advisors. |
| Use of proceeds | Equipment, Real estate, Expansion, Working capital | R&D / innovation |
| Status | Live, self-serve | Live, self-serve |
Choosing between them
Each side describes the scenarios where the program is the stronger fit. Most real-world deals end up in the “in common” section below, neither/nor.
When to choose
Pick CSBFP when the need is to buy equipment, fit out a leasehold, or purchase the building the business operates from. The dollar arrives as a bank loan you repay. CSBFP also funds working capital (a $150,000 line of credit, plus up to $150,000 inside a term loan) and the purchase of a going concern's assets (not its shares); it can refinance another lender's CSBFP loan, but not the same lender's conventional term debt.
When to choose
Pick IRAP when the project is technical R&D that fits the program criteria, technological novelty, commercialization plan, internal technical-staff payroll. The dollar arrives as a non-repayable contribution against approved expenditures; the use of proceeds is constrained to the technical project the NRC advisor reviewed and approved.
A manufacturer running an R&D program inside a growing operating business routinely uses both, IRAP funds the technical-team work on the R&D, CSBFP funds the equipment the rest of the business needs. The two never claim the same dollar; they fund different cost categories.
The CPA can look at your specific situation and tell you in one twenty-minute call which program (or stack) is the right structure, and what providers will want to see before the first conversation.
