Government Grants and Loans for Small Businesses: A Financial Guide

Montreal small business owners meet with a financial advisor to map out funding strategies. Small businesses in Canada, especially in Montreal and Quebec, have access to a rich ecosystem of government grants, loans, and tax incentives. These funding programs can fuel growth – from financing new equipment to hiring staff or expanding into export markets – but they come with complex rules and compliance obligations. This guide provides a legal-grade and tax-compliant analysis of key federal and Quebec programs, the regulatory framework, risks for owners and directors, and best practices to maximize benefits while avoiding pitfalls. We’ll explore real programs like the Canada Small Business Financing Program, SR&ED tax credits, NRC-IRAP R&D grants, CanExport, Quebec’s PME en action, and Investissement Québec loans. We’ll also discuss how misuse or non-compliance can lead to audits, penalties or personal liability, and how proper planning (with tools like the Canada Business Benefits Finder (↗) and support from organizations like Export Development Canada (EDC) (↗)) ensures these funds are used strategically. Finally, we highlight why partnering with experts such as Mackisen CPA can help Montreal SMEs structure winning applications, remain audit-ready, and fully capitalize on available incentives.

Regulatory Framework

Government financial support for small businesses operates within a defined legal and regulatory framework. At the federal level, programs are often enabled by statutes or administered through government agencies. For example, the Canada Small Business Financing Program (CSBFP) is a statutory loan program governed by the Canada Small Business Financing Actlaws.justice.gc.ca. Under this Act, the Government of Canada encourages banks and credit unions to lend to small firms by sharing the risk of defaultlaws.justice.gc.ca. Participating lenders can make loans of up to $1.15 million (including up to $150,000 as a line of credit) for business expansion needs, with the government guaranteeing up to 85% of the lender’s potential losswww2.gov.bc.calaws.justice.gc.ca. Similarly, tax incentive programs are grounded in legislation – the Scientific Research & Experimental Development (SR&ED) program, Canada’s flagship R&D tax credit, is anchored in Section 37 of the Income Tax Act, which sets out its framework and filing requirementscanada.cacanada.ca. Federal agencies like the National Research Council (NRC) deliver grant programs (e.g. NRC’s Industrial Research Assistance Program, IRAP) under mandates to spur innovation. IRAP provides non-repayable contributions (grants) to SMEs for R&D projects, sometimes covering a significant portion of project costs (often 60–80% of eligible salaries) to accelerate technology development.

At the provincial level, Quebec has its own robust initiatives. The Quebec government, often via Investissement Québec (IQ) (a provincial economic development agency), offers both grants and loans tailored to Quebec businesses. For instance, PME en action is a program administered by Investissement Québec as mandatary of the government, offering non-repayable contributions up to 40% of eligible project costs for productivity improvements or feasibility studiesairudi.comairudi.com. Each project can receive up to a capped amount (e.g. $50,000 for productivity projects, or $100,000 for feasibility studies, with higher caps in certain sectors)airudi.com. Quebec also provides funding through ESSOR and other programs, which may take the form of interest-free loans or loan guarantees for investment projectsinvestquebec.com. Investissement Québec’s financing solutions span loans, loan guarantees, and even quasi-equity financing, sometimes covering up to 100% of project costs for strategic investmentsinvestquebec.com. These programs operate under provincial guidelines and often complement federal supports.

Critically, all such grants and loans come with specific eligibility criteria, usage conditions, and oversight mechanisms. The regulatory framework requires that funds be used for the intended business purposes – for example, CSBFP loans can only finance eligible assets like equipment, leasehold improvements, or property and cannot be used for strictly ineligible sectors (farm businesses are excluded, as agriculture has separate programs)www2.gov.bc.ca. Grants like CanExport (SME), delivered by Global Affairs Canada’s Trade Commissioner Service, will only fund activities related to developing new export markets (travel, trade show attendance, marketing adaptation, etc.) and only for companies meeting size and revenue thresholdstradecommissioner.gc.catradecommissioner.gc.ca. Each program is underpinned by legislation or official program terms that delineate these rules. Understanding the legal framework is important because it tells businesses what is allowed, who qualifies, and which government body (federal department or provincial ministry) is responsible for monitoring compliance.

From a tax compliance perspective, businesses must also be aware that receiving government support has accounting and tax implications defined by law. The Income Tax Act stipulates that most forms of government funding – whether a grant, subsidy, forgivable loan or credit – are considered “government assistance” and are taxable or adjust the tax treatment of expensescanada.ca. In practice, this means a company that receives a grant must either include that amount in income or reduce the related expenses or asset cost for tax purposescanada.ca. These rules ensure that businesses cannot “double-dip” by both deducting an expense and having the government pay for it. For instance, if you get a $50,000 export grant, you cannot also deduct that same $50,000 as an expense – your net deductible expense must be reduced, or the grant counted as income. Tax credits like SR&ED work slightly differently (they reduce tax payable or provide refunds), but if a portion of R&D was subsidized by, say, an IRAP grant, the “qualified expenditures” for SR&ED must be reduced accordingly. In sum, the regulatory and tax framework surrounding these programs is intricate, balancing support for growth with safeguards to ensure proper use of public funds.

Owner and Director Liability

With great funding comes great responsibility. Business owners and directors who seek government grants or loans must be aware of their legal obligations and potential personal liabilities if things go wrong. Corporations may be separate legal entities, but misuse of government funds or serious non-compliance can pierce that veil, leading to personal consequences for those in charge. Many funding agreements and laws include clauses that hold corporate officers responsible for misrepresentations or misuse of funds. For example, under the Canada Small Business Financing Act, it is an offence for any person to knowingly make false statements or omissions in a loan application or related documentlaws.justice.gc.ca. A director or owner who provides false financial information to secure a CSBFP loan could face criminal charges – the Act sets penalties as high as $500,000 in fines or 5 years imprisonment upon convictionlaws.justice.gc.ca. This means that fraudulently obtaining a government-backed loan is treated extremely seriously. The law is effectively warning applicants: do not overstate your revenue, fabricate collateral, or otherwise deceive to get funding – the personal stakes could include jail time.

Even outside of explicit criminal fraud, owners have duties to use funds as intended. When a company receives a grant, the funding agreement typically stipulates how the money must be spent (for example, an R&D grant must be spent on the specified research project, not on the owner’s personal expenses). If those terms are breached, the government can demand the funds be repaid, and in some cases could pursue legal action for recovery. In Quebec’s programs, as in federal ones, directors may be asked to sign personal guarantees or attestations. Under the CSBFP loan program, while the government guarantees a portion of the bank’s loss to the lender, the borrower (and possibly its guarantors) remain liable for the debt – you cannot simply walk away from the 15% of the loan not guaranteed by the government. In fact, banks often still require owners to personally guarantee that remaining portion, meaning if the business defaults, the owner must repay that part out-of-pocket. Export Development Canada (EDC) has a similar concept with its loan guarantees: it may guarantee up to 75% of a loan to an exporter’s bankedc.ca, but the business and its principals are still responsible for the rest and for truthful disclosure. In short, a government guarantee or grant is not a blank cheque – owners remain accountable.

Directors of corporations also have statutory liabilities in certain cases of non-compliance. While grants and loans themselves (if used properly) don’t usually create personal liability, failing to meet tax obligations on them can. For instance, if a company improperly claims a refundable tax credit (like SR&ED) and it is later denied, the company must repay that amount with interest. If the CRA suspects deliberate fraud, they can assess gross negligence penalties, and directors involved in the fraud could be referred for prosecution. There have been cases where consultants and company directors were charged for orchestrating fake SR&ED claims; these individuals faced not only fines and repayment but also criminal sentences (including house arrest or jail) for tax fraudcanada.cacanada.ca. It’s also worth noting that directors are personally liable for certain tax remittances (like GST/HST or payroll source deductions) – so if a grant was given for hiring employees and the company failed to remit payroll taxes, the directors could be on the hook for those taxes. The bottom line is that owners and directors must approach government funding with the same diligence and honesty as they would any serious financial obligation. Any hint of misuse, deception, or gross negligence can lead to personal legal liability, including having to pay back funds out of pocket or facing penalties far more costly than the original benefit.

Jurisprudence and Enforcement

Canadian jurisprudence shows that authorities and courts do not hesitate to act against businesses – and individuals – who abuse grant and loan programs. High-profile enforcement actions in recent years underscore the risks of non-compliance. For example, in one case in Montreal, an accountant and a business owner were convicted for participating in a scheme to fraudulently claim SR&ED tax credits. The court found they had fabricated R&D expenses and identities, resulting in over $400,000 of unwarranted creditscanada.ca. The sentences were significant: one received a 20-month conditional prison term plus a $50,000 fine, and the other a 15-month conditional sentence plus repayment of the $421,360 in credits obtainedcanada.ca. In addition, both now carry criminal records. This case, among others, illustrates that courts will force offenders to disgorge the full amount of any funding improperly obtained, and then some. Similarly, during the COVID-19 pandemic, the federal government rolled out emergency subsidies and loans, and it was later reported that hundreds of companies were penalized for misusing those funds – required to repay amounts with penalties, and in egregious cases referred for prosecution. In another example, a well-known non-profit organization was found to have misallocated federal grant money and was ordered to pay back over $500,000 to the government. The message from these cases is clear: if you misuse public funds, you can expect audits, claw-backs, and possibly public legal action.

Government departments have formal mechanisms to detect and address abuse. Many funding programs reserve the right to audit recipients’ records. For instance, the Department of Canadian Heritage explicitly states that if a grant or contribution recipient uses funds in a fraudulent or abusive manner, the Department will investigate and can perform audits, recover the misused funds, and even refer the matter to police authoritiescanada.ca. Likewise, Innovation, Science and Economic Development Canada (ISED) and regional agencies often conduct program compliance audits on businesses that received grants, to verify that the money was spent on eligible costs. If an audit finds that funds were spent outside of approved activities (for example, a business took an export marketing grant but spent part of it on a local renovation), the government can demand repayment of those amounts as “ineligible expenses”canada.ca. This is typically enforced through the funding agreement’s terms. Refusal to comply can lead to legal action or disqualification from future programs.

Canadian courts have also upheld the principle that government agencies can recover funds obtained by misrepresentation. In contract law, a funding agreement entered into under false pretenses (say, overstating your project’s costs to get a bigger grant) can be voided for fraud, and the money must be returned. Even where formal charges aren’t laid, an offender’s reputation can be irreparably damaged – a serious consideration for small business owners in close-knit communities like Montreal. Additionally, case law under tax statutes (like the Income Tax Act) shows that aside from criminal prosecution, there are stiff civil penalties: any business that claims credits or incentives it isn’t entitled to must repay them with interest, and can face gross negligence penalties of 50% of the improperly claimed amount. The CRA emphasizes that “tax evasion is a crime” and publicizes convictions to deter otherscanada.ca. Out of dozens of recent convictions for tax-related offences, many involved false benefit claims, resulting in millions of dollars in fines and several people sent to jailcanada.ca.

In short, the legal precedent makes one thing abundantly clear: governments consider the integrity of their grant and loan programs to be paramount. There is a duty to taxpayers to ensure public funds are used for the intended economic development purposes. Owners and financial managers should study past cases (or consult legal advisors) to learn from others’ mistakes. Jurisprudence in this area consistently favors the government’s right to enforce compliance, and courts have little sympathy for those who try to game the system. Instead of seeing government funding as “easy money,” businesses should approach it as a contractual and fiduciary responsibility – one where transparency and honesty are non-negotiable.

Deadlines and Late Penalties

Timeliness is another critical aspect of compliance. Government programs often have strict deadlines for applications, claims, and reporting, and missing these can lead to forfeiture of funds or financial penalties. One of the most unforgiving examples is the SR&ED tax credit: a corporation must file its SR&ED claim within 18 months after the end of the fiscal year in which the R&D expenditures were incurredcanada.ca. This 18-month window (which equates to 12 months after the tax return due date, since corporate tax returns are due 6 months after year-end) is a hard deadline – even a day late and your credit for that year is lost. CRA has no discretion to accept late SR&ED claims; the law simply doesn’t allow it. So, if a company’s year-end was December 31, 2023, the SR&ED claim for 2023 R&D work must be filed by June 30, 2025 (18 months later) – a common mistake is to assume it’s 2 years or to procrastinate and miss the cutoff. Missing this deadline is essentially a self-inflicted penalty of losing out on funding you might have otherwise received.

Grant programs also enforce deadlines at various stages. Many grants have application intake periods – apply after the deadline and you won’t be considered. (For instance, the CanExport SME program’s application portal closed on May 31, 2025 for that cycletradecommissioner.gc.ca; businesses now must wait until it reopens to apply). If you are approved for a grant, there will be deadlines to sign the funding agreement, to complete the project, and to submit your expense claims or project reports. Failing to meet a project completion deadline can result in the grant or a portion of it being revoked. Agencies may give extensions in genuine cases, but it’s not guaranteed. Moreover, reporting deadlines are sacrosanct. If a condition of your grant is to file a progress report or an audited financial statement by a certain date, not doing so could trigger a repayment clause or make you ineligible to receive the next tranche of funding. Always diarize and plan for these; they are just as important as tax filing dates.

Loans, on the other hand, involve a different kind of “deadline”: repayment schedules. Paying late on a government-sponsored loan has similar consequences to any commercial loan – late fees, higher interest, and potential default. Under the CSBFP, for example, if a borrower misses payments and goes into default, the lender will eventually call the loan. While the lender can claim a portion of the loss from the government, the default will still wreck the business’s credit and ability to obtain future loans, and the lender (or government subrogated in its place) can pursue the business (and any guarantor) for the outstanding amounts. There’s no special forgiveness just because it was a government program. In fact, one could argue there’s less flexibility because the program rules must be followed uniformly.

It’s also worth noting that some programs impose penalties for late compliance in more subtle ways. For instance, if you receive a contribution from a fund that requires matching dollars from you by a certain date, failing to spend your share by that date might mean the government reduces its contribution proportionally (i.e., you leave money on the table). In tax, there are penalties for late filing of information relating to credits – e.g., if CRA audits your SR&ED claim and requests additional documents, not responding by their deadline could lead to your claim being denied and a penalty under Income Tax Act section 162 for missing informationcanada.ca. Another example: for payroll grants or hiring credits, filing the related tax forms late could nullify the credit. Always read the fine print: some grant agreements explicitly state that late reports or deliverables will result in a $X reduction of funding per week, or similar – effectively a late penalty.

In conclusion, mark your calendars and treat program deadlines with the same seriousness as any payable due date. The simplest way to avoid losing funding is to submit everything on time. Good project management and reminders (with some buffer for unforeseen delays) are essential. If you think you might miss a deadline, communicate proactively with the funding agency – they may offer an extension if you have a valid reason and ask before the deadline hits. The ethos to adopt is: government funding is a scheduled partnership – and you must keep your side of the schedule.

Operational Realities of Government Funding

While grants and loans can be game-changers for a small business, the practical side of accessing and using them requires careful planning and management. One key reality is that these programs rarely provide “up-front” cash with no strings attached. Often, you must incur the costs first and then seek reimbursement for eligible expenses. For example, a contribution agreement under IRAP or a Quebec PME en action grant will stipulate that you submit claims (monthly or quarterly) with proof of expenditures (invoices, timesheets, etc.), after which the agency reimburses the agreed percentage. This lag means you need sufficient cash flow or bridge financing to carry the project costs until the government funds arrive. Many companies underestimate this and run into liquidity issues. It’s wise to arrange a line of credit or ensure reserves to finance the project in the short term, because grant payments can take weeks or months for processing. The Canada Small Business Financing Program loan, in contrast, provides financing up-front (since it’s a loan from a bank), but remember it’s a loan – interest accrues immediately and you need to make regular payments, starting right away. The operational reality is that you must budget for loan repayments or the interim financing of grant-funded projects, so that the “help” from the government doesn’t inadvertently strain your cash flow.

Another reality: administrative workload. Applying for and managing government funding involves a lot of paperwork and compliance tasks. Applications often require detailed business plans, financial forecasts, and supporting documents. Once approved, record-keeping becomes paramount. You will need to track expenses meticulously, separating those that are covered by the funding from those that are not. Many grants will only cover specific cost categories (e.g. salaries of new hires, or 50% of marketing costs, etc.), and you’ll need to produce evidence of those expenses. This means setting up your accounting system to tag or segregate project expenses. You might also have to follow procurement rules – some grants require that you get multiple quotes for large purchases or that you avoid conflict-of-interest in choosing suppliers. Operationally, this adds steps to your usual way of doing business. Government funders may also ask for periodic progress updates: you might have to submit monthly technical reports for an R&D project or a final outcomes report after an export market development trip. All this needs time and effort, which should be accounted for in your project planning. It’s common to underestimate the “management overhead” of funded projects – but failing to meet these administrative requirements can jeopardize the funding itself.

Moreover, not every funding program is a fit for every business timeline. Approval times vary. A SR&ED tax credit, for example, is typically received when your tax return is assessed – which could be anywhere from a few weeks to many months after filing, especially if CRA selects the claim for a detailed review (audit). An IRAP grant application might take a couple of months to go through evaluation and due diligence before you get a green light; CanExport applications are often reviewed in batches after the deadline, meaning you could wait several months to hear back. If your project is time-sensitive (say you need to start now to seize a market opportunity), you have to weigh the benefit of waiting for official approval versus starting at risk. Beginning project work before a grant is formally approved is usually not eligible for reimbursement (expenses incurred before the start date in the agreement are not covered). Therefore, the operational planning should factor in a realistic start date after approval, or else treat those pre-approval costs as out-of-pocket.

Another reality to manage is scope changes and flexibility. Business projects evolve – maybe a piece of equipment becomes unavailable or you need to pivot your R&D approach. With private financing, you have full freedom to redirect money; with government funding, you do not. You typically must request approval to make material changes to the project’s scope, budget, or timeline. For instance, if you got a grant to attend three international trade shows and now want to substitute one of them for a different market, you likely need written permission from the program administrator. Failing to do so can lead to that portion of your costs being deemed ineligible. The same goes for underspending or overspending: many programs won’t pay above the agreed amount, and if you spend significantly less, they may reduce the grant proportionally (and even ask for unspent advances back). Running a funded project thus requires a tight project management discipline – tracking milestones, deliverables, and budgeting closely, and communicating with the funder if any adjustments are needed.

In summary, government funding is enormously beneficial but operationally demanding. Businesses should go in with their eyes open: expect rigorous paperwork, the need for good internal controls, and a degree of patience. The successful recipients are often those who treat funded projects with a level of formality akin to delivering a project for a major client – with dedicated personnel, clear documentation, and adherence to requirements. This is where working with professionals or advisors (like a part-time CFO or an external grant manager) can pay off, to handle these complexities and let the technical team focus on the actual business project.

Best Practices and Common Mistakes

Securing and effectively using grants and loans requires strategy and diligence. Here are some best practices for Montreal small businesses, along with common mistakes to avoid:

• Match Funding to Strategy: Align funding applications with your genuine business goals. A best practice is to target programs that truly fit your needs rather than chasing every dollar. For example, if your goal is to implement new technology to improve efficiency, Quebec’s PME en action – Productivité grant could be a fit; if you aim to expand sales to the US, a combination of CanExport (to fund marketing visits) and EDC support (for insurance or financing) might be strategic. Avoid the mistake of contorting your project just to qualify for a grant – funding is not “free” if it derails your focus or adds unsustainable operations. Many companies have wasted time on grants that offered money for side-projects that didn’t move the needle. Stay strategic: use the Canada Business Benefits Finder (↗), an official online tool, to quickly identify programs suited to your business’s size, location (Quebec), and objectives. This tool can save you from the mistake of overlooking a program or, conversely, spending effort on inapplicable ones by providing a tailored list of federal and provincial support measures.

• Plan for Compliance from Day 1: Treat compliance as part of the project, not an afterthought. Set up a system for documentation – keep all receipts, contracts, and timesheets related to funded costs in a dedicated folder (physical or digital). A common mistake is failing to track expenses in the detail required; for instance, not recording the hours an employee spent on the grant-funded project, which later makes it hard to substantiate a claim for wage reimbursement. A best practice is to maintain a simple spreadsheet or use project accounting software to monitor expenditures against the grant budget categories. Regularly reconcile this with your general ledger. If you’re claiming SR&ED, maintain contemporaneous records of your R&D activities (experiment notes, prototypes, etc.) because CRA will want to see evidence of the work during an audit. By being audit-ready at all times, you not only ease the eventual reporting but also sleep better knowing a surprise inspection won’t catch you off-guard. Remember that agencies can audit even mid-project – for example, Investissement Québec might audit a claim before releasing a second installment of funds – so have your paperwork in order.

• Understand the Rules (and Ask Questions): Every program has a detailed applicant guide or set of terms and conditions. Read them carefully. Before you apply, and certainly before you sign an agreement, understand what’s eligible and what’s not. If the SR&ED rules say you can’t claim work funded by another government source, make sure you’re not double-claiming expenses paid by an IRAP grantcanada.ca. If a loan program requires certain financial covenants (like maintaining insurance on purchased assets or not changing ownership of the company during the loan term without approval), ensure you can comply. A frequent mistake is assuming “nobody will notice” a minor rule breach or that rules are mere guidelines – in fact, disbursements can be withheld for non-compliance. When in doubt, contact the program officers. Government program managers can be very helpful in clarifying eligibility or how to correctly fill forms; reaching out can prevent errors. For example, before incurring a major expense, you can ask “Would this be considered eligible under the grant terms?” It’s better to get written confirmation than to risk a costly disallowance later.

• Mind the “Stacking” Limits: Stacking refers to using multiple government funding sources on the same project. Best practice is to leverage different programs together strategically, but within allowed limits. Often, programs specify a maximum combined government contribution. For instance, Quebec’s PME en action caps the total government funding at 50% of the project costsairudi.com. If you plan to use both a federal and provincial program on one project, you must ensure that, say, a 40% provincial grant and a 50% federal contribution don’t together exceed 90% of costs – typically you’d need to cover at least 10% from your own or other non-government sources in that scenario. A mistake would be to accept overlapping funds that push the government share too high; during audits or cross-checks, this could be flagged, and you might have to repay the excess. On the flip side, do maximize your opportunities by covering different aspects of a venture with different programs. For example, a tech startup might use IRAP to co-fund the R&D of a new product, and simultaneously use the SR&ED credit to recover a portion of the remaining R&D costs – those two are designed to complement, not duplicate, since IRAP reduces the SR&ED pool but doesn’t eliminate the benefit. Similarly, you could get a loan (like CSBFP) to finance equipment purchase, and a grant to subsidize training staff on that equipment. The best practice is to create a funding plan: map out all potential sources and allocate portions of your project budget to each, ensuring compliance with each program’s rules and overall limits.

• Use Expert Help When Needed: Government funding applications and compliance can be confusing, especially for first-timers. Don’t hesitate to seek advice from professionals – be it a CPA firm, a tax advisor, or a specialized grant consultant. They can help identify less-known opportunities (there are targeted funds for all sorts of things, from digital adoption to hiring youth, many of which aren’t widely advertised). Professionals also know the common pitfalls: for instance, an experienced SR&ED consultant will warn you not to claim proxy overhead on salaries already subsidized by another grant, because that could draw scrutiny. An advisory firm like Mackisen can provide a “second set of eyes” on your application or claims to catch errors. While some businesses worry about the cost of advisors, the value in avoiding a denied $50,000 claim or a compliance headache far outweighs the fee. One common mistake, in contrast, is going it completely alone and misunderstanding a key requirement – leading to a rejection that could have been avoided. That said, be wary of any external consultants who promise magic or encourage aggressive claims (for example, inventing R&D activities just to get credits) – remember, you as the business owner are ultimately responsible for the claims submittedlaws.justice.gc.ca. Only work with reputable advisors who emphasize integrity and accuracy.

• Integrate Funding with Financial Planning: When you secure a grant or loan, update your business’s financial plans to incorporate it wisely. Best practice is to create a budget that reflects the funding inflows and the obligated outflows. If you got a loan with a low interest rate, consider allocating the interest cost savings into something productive (e.g. a contingency fund for the project). If you obtained a grant for buying new machinery, plan for the depreciation and eventual maintenance costs of that machinery – those future expenses will be your responsibility after the grant covers the purchase. A mistake is to treat a grant as “extra money” and become lax on other spending; instead, remain just as cost-disciplined, using the grant to accelerate goals rather than to inflate them. Additionally, consider the tax impact: since most grants are taxable, set aside a portion of the funds (or at least be aware that come tax time, you might owe taxes on the grant income if you’re profitable). For example, if you get a $100,000 grant and it’s fully taxable, and your corporate tax rate is ~15%, then $15,000 of that might effectively go to taxes – don’t spend 100% on the project and then be short on cash for taxes. Planning for this ensures the funding remains a net benefit.

By adhering to these best practices and being mindful of common mistakes, small business owners can greatly enhance their success rate with government funding. In essence, be strategic, be organized, be honest, and be proactive. The businesses that thrive with grants and loans are those that approach them in a professional manner – much like a well-run project for a client or investor. This diligence not only helps in getting the funding in the first place but also builds a positive track record with funding agencies, which can open doors to more opportunities down the line.

Why Choose Mackisen

Navigating the world of government grants, loans, and tax incentives can be daunting – but you don’t have to do it alone. This is where Mackisen comes in. Mackisen is a full-service CPA firm based in Montreal, offering CFO advisory, grant consulting, accounting, and tax planning services under one roof. For small and medium-sized businesses in Montreal and across Quebec, Mackisen provides the seasoned guidance needed to make the most of government funding programs while staying 100% compliant. Here’s what sets Mackisen apart:

• Expertise in Funding Strategy: Mackisen’s professionals have deep knowledge of both federal and Quebec programs – not just the headline offerings like CSBFP, SR&ED, IRAP, and Investissement Québec products, but also niche grants and credits that might benefit your specific industry. We help businesses identify all the incentives they are eligible for and create a coordinated strategy to maximize these. For example, our team can determine how to structure a project so that you leverage a provincial grant alongside a federal tax credit without breaking any rules or exceeding funding limits. We stay up-to-date on new initiatives (such as digital adoption grants or post-pandemic recovery loans) so you don’t miss out on the latest opportunities.

• Application and Compliance Support: One of the biggest hurdles for SMEs is the complex paperwork – and this is where Mackisen truly adds value. Our CPA and advisory team will assist in preparing robust application packages, including business plans, financial projections, and the all-important numeric schedules that funding applications require. We know what program reviewers look for, and we tailor applications to meet those criteria, greatly improving approval chances. Once you receive funding, Mackisen can handle the ongoing compliance: setting up proper bookkeeping for the project, preparing claim reimbursement forms, and ensuring all expenditures are documented to the standard auditors expect. Essentially, we act as your outsourced finance department, making sure every report, claim and return is filed accurately and on time. This service is invaluable in avoiding errors that could delay payments or trigger audits.

• Audit-Ready Financials and Controls: As a CPA firm, Mackisen brings a “audit mentality” to your operations – in a good way. We implement internal controls and review processes so that if a government auditor examines your records, everything is clean, organized, and substantiated. From our experience, many funding audits fail not because the business did something wrong, but because they couldn’t produce the right evidence in time. With Mackisen’s oversight, your books will align with both generally accepted accounting principles and the specific requirements of each funding program. We also perform periodic check-ups during the project to ensure you remain on track (for instance, we’ll monitor that you are hitting the milestones you committed to in a grant agreement and alert you if any adjustments or communications to the funder are needed).

• Tax Planning and Integration: Government incentives shouldn’t be looked at in isolation – they affect your tax situation and broader financial picture. Mackisen’s tax experts ensure that grants and credits are properly reported on your tax returns (avoiding the pitfall of unexpected tax bills or CRA disputes). More importantly, we incorporate these incentives into your long-term tax planning. For example, if you received a large grant in the year, we might advise on investing in other deductible expenditures or capital assets to offset the income, or set up a reserve for taxes. If you purchase equipment with a government loan, we consider how to best claim depreciation (CCA) and interest expenses. Our holistic approach means you retain as much of the benefit as possible legally, rather than giving a chunk back in taxes or inefficiencies.

• Full-Service Partnership: Mackisen isn’t just about filing forms – we position ourselves as a partner in your growth. Our firm offers a suite of services relevant to entrepreneurs: accounting & bookkeeping, financial statement preparation, audit and assurance, payroll, and even cross-border tax expertise. This breadth is crucial because grants and loans are just one piece of the puzzle. For instance, after obtaining funding to expand, you may need advice on optimizing your corporate structure, or help with budgeting and cash flow management as your business scales. Mackisen can provide a fractional CFO service, giving you high-level financial guidance at a fraction of the cost of a full-time CFO – perfect for SMEs. We also have experience in defending tax positions (like SR&ED claims) in case the CRA reviews them, acting as your advocate backed by our knowledge of the tax law and jurisprudence. Our goal is to be the one-stop, trusted advisor for Montreal businesses, so you can focus on your operations and growth, while we handle the numbers and red tape.

In choosing Mackisen, you gain a team that cares about your success and has the skills to navigate the bureaucracy of government funding. We pride ourselves on integrity, professionalism and results. Many of our clients have secured substantial funding and credits – sometimes hundreds of thousands of dollars – with our help, fueling innovations, expansions and job creation. We’ve helped startups structure their SR&ED projects to maximize refundable credits, guided family businesses through obtaining low-interest loans for modernization, and kept all of them compliant with ease. For a small business owner, having Mackisen in your corner means peace of mind: you won’t miss an opportunity due to ignorance, and you won’t lose sleep over whether you did things right. We combine the technical rigour of a chartered accounting firm with the entrepreneurial savvy of a business consultant.

Mackisen’s value proposition is simple: we help Montreal SMEs get the money that’s on the table, use it wisely, and keep clear of trouble. In the competitive landscape of grants and loans, that can make all the difference. Whether you’re looking to apply for your first program or looking to optimize and secure the benefits of funding you’ve received, our team is ready to assist. With Mackisen as your partner, you can confidently leverage every government incentive available to build your business – all while staying on the right side of regulations and tax laws.

Let us handle the complexity, so you can harvest the benefits and grow your company with confidence. Get in touch with Mackisen to explore how our full-service CPA, CFO, grant advisory, and tax planning expertise can take your small business to the next level, powered by the smart use of government funding opportunities. Here in Montreal’s vibrant business community, we’re committed to helping you thrive, from compliance to expansion, every step of the way.