Why IRAP Proposals Get Rejected
Most IRAP funding requests that don’t succeed miss one of NRC’s published assessment factors, or run into budget limits. Knowing which gap you have tells you what to fix.
Why do IRAP proposals get rejected?
IRAP proposals usually don’t succeed because the project lacks a real technical challenge, the company can’t show capacity to fund and deliver it, the commercialization plan is vague, or regional budget is limited. Some work was already done or isn’t R&D. Each maps to a factor NRC publishes, so each can be diagnosed.
How many companies get funded?
Not every company that works with IRAP receives funding, and that is normal. NRC’s evaluation for 2017–18 to 2021–22 counted 22,458 firms reached and 7,717 funded, about a third; 13,699 received advice without funding. A no on funding often still comes with useful advice.
| Measure | Firms |
|---|---|
| Reached with advice or funding | 22,458 |
| Received funding | 7,717 |
| Advice without funding | 13,699 |
See the NRC IRAP evaluation.
What are the common gaps, and the fixes?
The common gaps line up with NRC’s assessment factors. Use the table to find yours and the fix to work on before the next conversation with your advisor, so you return with evidence rather than the same proposal.
| Gap | Sign | Fix |
|---|---|---|
| No real technical challenge | Work is routine development or integration | Reframe around the genuinely uncertain part, or wait for one |
| Weak capacity | No clear way to fund your share or manage the project | Show funding, cash flow and a project lead |
| Vague commercialization | No named customers, pricing or sales plan | Add customer evidence and a go-to-market plan |
| Unclear milestones | Deliverables described in adjectives | Measurable milestones with dates |
| Timing | Work already under way or finished | Scope the next phase before starting it |
| Budget limits | Strong project, limited regional funds | Ask your ITA about timing and project size |
What should you do after a no?
Ask your ITA directly what would have made the proposal fundable, and whether a smaller or later project could fit. Fix the specific gap, keep working with the advisor, and come back with evidence of progress. Many companies are funded on a later, better-scoped project.
Ask what would make it a yes.
The most useful sentence after a decline is ‘What would a fundable version of this look like?’ Ask your ITA, then build that.
Are there alternatives while you fix it?
Alternatives include SR&ED tax credits for eligible R&D, federal procurement programs, and export support, and some of them don’t depend on an advisor’s invitation or a regional budget. See IRAP vs SR&ED, stacking IRAP with other funding, and export support in the Canadian Startups guide.
This page is general information, not financial or tax advice. Confirm details with your ITA and your accountant.
Frequently asked questions
Why was my IRAP funding request declined?
Usually a gap in NRC’s criteria: technical challenge, capacity, commercialization plan, milestones or timing, or limited budget.
How many companies get IRAP funding?
NRC’s evaluation counted 7,717 funded firms out of 22,458 reached from 2017–18 to 2021–22, about a third.
Can I try again after being declined?
Yes. Fix the specific gap, keep working with your ITA, and return with evidence of progress.
Does IRAP give feedback?
Ask your ITA directly what would make the project fundable.
Is budget a reason for rejection?
It can be. IRAP funding is discretionary and depends on available budget.
What can I use instead of IRAP?
SR&ED tax credits, federal procurement programs and export support, depending on your project.
Sources & further reading
Program rules, timings and figures come from NRC and CRA pages, checked on the date shown. Your contribution agreement and ITA have the final word.