Why scale-ups use 0 % government contributions
- 0 % structured repayment. No interest over the life of the agreement, substantially reducing cost versus traditional bank debt.
- 1-to-3-year payment moratorium. Repayment begins after equipment commissioning and project completion, once cash flow is positive.
- No equity dilution. Contributions act as patient, subordinated capital without board seats, warrants or dilution.
What to know
Each program sets its own eligibility, stacking rules and repayment terms. An application must generally precede the commitment of costs.
How we can help
We help place a repayable contribution within the capital structure, prepare the proposal and coordinate accounting work with partner firms. No funding is guaranteed.
Frequently asked questions
What programs offer 0 % repayable contributions?
FedDev Ontario (Business Scale-up), the Strategic Innovation Fund (Streams 2 and 3), AgriInnovate and the western regional development agencies (PacifiCan, PrairiesCan), among others.
What happens if a project fails?
Conditionally repayable contributions carry performance clauses under which repayment may be partially or fully forgiven if revenue milestones are not achieved due to market conditions.
Can they be combined with commercial bank debt?
Yes. Commercial lenders generally view 0 % repayable contributions as quasi-equity, which makes it easier to secure matching senior bank debt.
Official sources
- Government of Canada — Regional development agencies — repayable contribution programs of the regional agencies
Canadian Funding Partners Inc. is an independent advisory firm and does not administer this program. Rates, ceilings and eligibility are set by the administering authority and change. Confirm current terms with the official source before relying on them.