BSP Presentation

Business Scale-up and Productivity (BSP) program

 

Business Scale-up & Productivity (BSP) Program Stream - Information Session

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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

4 Flagship Platforms


Western Economic Diversification (WD)

  • Delivers a continuum of programs and services supporting western small and medium-sized enterprises (SMEs) to innovate, compete, and engage in international business
  • Promotes and coordinates federal economic development policies and programs in the West

WD promotes the development and diversification of the economy in Western Canada.


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 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.

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

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)

BSP vs WINN – what's changed?

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

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 Technologies

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


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
  • 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.

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

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.


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

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.

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)

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.


Confirmation of Funding

BSP
Evidence of Confirmed Funding Not Accepted as Confirmed Funding
  • Funding provided by applicant
    • Current bank statements detailing existing cash balances or the unused portion of lines of credit
  • Funding provided by third-party sources
    • Official letters of confirmed/ conditional funding
    • Funding agreements
    • Signed term sheets
  • Forecasted revenues from future activities
  • Accounts receivables
  • Commitments to raise equity or to obtain future bank financing
  • Scientific Research & Experimental Development (SR&ED) credit receivables

Assessment Process

  • Eligibility
    • Based on mandatory BSP criteria and application requirements
  • Competitive Pre-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
  • All applicants will be contacted as to whether or not they have been selected for detailed assessment.
    • a 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.
  • 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.

Not all applications undergoing a detailed assessment will receive an offer of funding.


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
  • Demonstrated financial capacity to execute the project and the ability to repay
  • Clear alignment with at least one priority
  • 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)

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


Other Funding Consideration

  • 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.

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