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Industrial and Regional Development Regulations (SOR/83-599)

Regulations are current to 2024-05-28

PART VIIModernization and Expansion (continued)

  •  (1) The Minister may make a contribution to a commercial operation in respect of the cost of engaging a qualified consultant

    • (a) to perform a study concerning the feasibility of a proposed project that would likely be eligible for a contribution under section 21; or

    • (b) to perform a productivity improvement study, market research or a venture capital search in connection with a proposed project that would likely be eligible for a contribution under section 21.

  • (2) The Minister’s contribution under subsection (1) shall not exceed

    • (a) 30 per cent of the costs of consulting services for projects in districts in Tier Group I or Tier Group II; and

    • (b) 37.5 per cent of the costs of consulting services for projects in districts in Tier Group III or Tier Group IV.

    • (c) [Revoked, SOR/84-902, s. 11]

  • SOR/84-902, s. 11
  •  (1) In this section, eligible costs and expanding existing facilities have the same meaning as in section 21.

  • (2) The Minister may, with the approval of Treasury Board, make a contribution to a commercial operation for a project in a district in Tier Group I

    • (a) in respect of the eligible costs of machinery or equipment that modernizes or increases significantly the productivity of the commercial operation; or

    • (b) in respect of the capital costs of expanding existing facilities of the commercial operation.

  • SOR/84-902, s. 12

PART VIIIMarketing

  •  (1) The Minister’s contribution under this section shall not exceed 45% of the costs.

  • (2) The Minister may make a contribution to an eligible person, other than a municipal corporation, in respect of the costs of

    • (a) activities that promote the acceptance of Canadian standards and product specifications,

    • (b) the publication and dissemination of catalogues and other literature to promote Canadian products,

    • (c) market research and analysis,

    • (d) advertising, and

    • (e) a trade show, seminar or other event,

    where the purpose of the activity, literature, research, analysis, advertising or event is to increase marketing of the products or services of commercial operations.

  • (3) [Revoked, SOR/84-902, s. 13]

  • SOR/84-902, s. 13

 Subject to section 25, the Minister may make a contribution to an eligible person, other than a municipal corporation, in respect of the cost of engaging a qualified consultant to conduct a study concerning the feasibility of a proposed activity that would likely be eligible for a contribution under subsection 23(2).

  • SOR/84-226, s. 3
  • SOR/84-902, s. 14

 The Minister’s contribution under section 24 shall not exceed

  • (a) 25 per cent of the cost of consulting services for activities to be carried out by eligible persons located in Tier Group I;

  • (b) 30 per cent of the cost of consulting services for activities to be carried out by eligible persons located in Tier Group II; or

  • (c) 37.5 per cent of the cost of consulting services for activities to be carried out by eligible persons located in Tier Group III or Tier Group IV.

  • SOR/84-902, s. 14

PARTS IX AND X

[Revoked, SOR/84-902, s. 15]

PART XIConditions of Assistance

  •  (1) Notwithstanding any other provisions of these Regulations, the Minister may not make a contribution in respect of a cost of a proposed project or activity if the applicant had, prior to the receipt by the Minister of an application for a contribution to the proposed project or activity, entered into a legal commitment in respect of the cost.

  • (2) In this section, legal commitment does not include an option to purchase.

  •  (1) Every applicant shall provide the Minister with any information in his possession that is likely to assist the Minister in considering

    • (a) the probable cost of each job likely to be created or maintained as a result of the proposed project or activity calculated in terms of the proposed contribution;

    • (b) the leverage of private investment;

    • (c) factors relating to the district or portion thereof in which the project or activity is to be carried out, including the local rate of unemployment;

    • (d) the amount of any federal, provincial or municipal assistance or tax credit, whether past, present or future, that is likely to be relevant to the proposed project or activity;

    • (e) the degree of benefit likely to result when compared to the likelihood of successful completion of the proposed project or activity;

    • (f) implications of the proposed project or activity in relation to Canada’s balance of payments;

    • (g) the probable impact of the proposed project or activity on commercial operations, eligible persons and districts;

    • (h) the probable cost of preventing or eliminating any significant air, water or other pollution that could result from the proposed project or activity;

    • (i) in the case of a project to establish or expand a processing facility, whether the resources to be exploited would be adequate, on a sustained-yield basis, to support the facility together with any existing facility that utilizes the same resources; and

    • (j) such other factors relating to the economic and social benefits and costs of the proposed project or activity as the Minister considers relevant.

  • (2) Every applicant shall provide in his application, an outline of the proposed project or activity in reasonable scope and detail.

  • SOR/84-902, s. 16

 If

  • (a) the contribution to be authorized by the Minister for a proposed project or activity is likely to be at least $100,000, or

  • (b) at least 100 jobs are likely to be directly affected by a proposed project or activity,

the Minister may consult with the Canada Employment and Immigration Commission concerning the human resource implications of the proposed project or activity prior to entering into an agreement to provide a contribution.

  • SOR/84-902, s. 17

 If, as a result of a consultation under section 31, the Minister and the Canada Employment and Immigration Commission are satisfied that the applicant should have a human resource plan for the project or activity, the Minister may require, as a condition of the contribution that the applicant submit a human resource plan satisfactory to the Canada Employment and Immigration Commission within a stipulated time.

  • SOR/84-902, s. 18

 Notwithstanding any provision of these Regulations, the Minister shall not make a contribution unless the project with respect to which the contribution is being provided is commercially viable within reasonable bounds of risk, and the commercial operation carrying out the project is or will become commercially viable within reasonable bounds of risk.

  • SOR/84-902, s. 18

 The Minister shall not make a contribution in respect of any project or activity that is eligible for assistance under

  • SOR/84-902, s. 19
  •  (1) Subject to subsection (3) the Minister shall not make a contribution in respect of any project or activity where the maximum amount of eligible costs of such project or activity, the number of employees of the applicant and the value of tangible assets of the applicant meet the eligibility criteria set out in a subsidiary agreement on small business incentives made pursuant to an Economic and Regional Development Agreement.

  • (2) Subject to subsection (3), the Minister shall not make a contribution in respect of any project or activity that is eligible for assistance under the Low Interest Loan Assistance Program of the Province of British Columbia in effect October 1, 1985.

  • (3) Subsections (1) and (2) do not apply to any contribution make pursuant to section 9, 10, 11, 12, 13, 23 or 24.

  • SOR/86-324, s. 1
  •  (1) It is a condition of every contribution that the aggregate of

    • (a) the contribution,

    • (b) any other federal, provincial or municipal government assistance in respect of the project or activity, and

    • (c) the estimate by the Minister of any tax credit to which the applicant is or will be entitled in respect of any property or expenditure related to the project or activity on or before the date of its completion,

    does not exceed 90 per cent of the costs, eligible costs or capital costs, as the case may be, of the project or activity.

  • (2) Assistance under these Regulations shall be in such amount as the Minister considers necessary for the successful completion of the project or activity from which the value of any assistance described in paragraph (1)(b) will be deducted.

  • SOR/84-902, s. 20

 Notwithstanding any other provision of these Regulations, the Minister shall not make any contribution or pay any part thereof, in respect of a cost that is not a reasonable and proper direct cost of a project or activity.

  • SOR/84-902, s. 21

PART XIIPayment Conditions

  •  (1) Subject to these Regulations, the Minister shall pay a contribution under section 16, 17, 19, 21 or 22.1 as follows:

    • (a) after commencement of commercial production, the Minister shall make a payment to the commercial operation;

    • (b) after the payment referred to in paragraph (a), the Minister may make one or more additional payments; and

    • (c) prior to a day six months after the end of the control period, or such subsequent day as will allow the Minister reasonable time for processing, the Minister shall pay any outstanding amount of the contribution.

  • (2) Payments under paragraph (1)(a) or (b) shall not exceed 90 per cent of the contribution owing in respect of the claim for payment submitted by the commercial operation.

  • (3) The Minister shall not make any payment under paragraph (1)(b) with respect to any claim for less than 10 per cent of the total amount the Minister has agreed to contribute.

  • (4) Notwithstanding any other provision of this section, no payment shall be made by the Minister until the level of equity in the commercial operation, as specified by the Minister in subsection 49(1), has been provided to the satisfaction of the Minister.

  • (5) The Minister shall not contribute to any capital costs in excess of 125 per cent of the amount the Minister originally agreed to contribute unless the Minister has consented to do so in writing before the excess costs are incurred.

  • SOR/84-902, s. 33
  •  (1) The Minister shall pay a contribution, other than a contribution under section 16, 17, 19, 21 or 22.1, in accordance with this section.

  • (2) While the project or activity is being carried out, the Minister shall pay the applicant, on the basis of claims for payment submitted by the applicant in respect of costs incurred and paid, not more frequently than once every three months.

  • (3) The Minister shall not pay the applicant more than 90 per cent of the contribution owing in respect of a claim for payment described in subsection (2) prior to the completion of the project or activity.

  • (4) Every claim for payment submitted prior to the completion of a project or activity shall be certified by an officer of the applicant or other person satisfactory to the Minister.

  • (5) On completion of a project or activity, the applicant shall submit a statement of all costs certified by the applicant’s external auditor or by an auditor approved by the Minister.

  • (6) On approval by the Minister of the statement submitted in accordance with subsection (5), the Minister shall pay any outstanding amount of the contribution.

  • SOR/83-832, s. 4(F)
  • SOR/84-902, s. 33
  •  (1) If an applicant is required, pursuant to these Regulations or the contribution agreement with the Minister, to provide documentation certified by an external auditor, the Minister may, in addition to the amount otherwise payable under the contribution agreement, contribute to the cost incurred by the applicant for this purpose, at a percentage that does not exceed the agreed contribution percentage as set out in the contribution agreement.

  • (2) The Minister may make the contribution referred to in subsection (1) without amending the contribution agreement.

  • SOR/84-902, s. 22

 Notwithstanding subsection 38(1), when the Minister has entered into an agreement to provide a contribution to an eligible person in respect of an activity, the Minister may make a payment or payments on account of the contribution, prior to the costs, in respect of which the payment or payments are made, being incurred or paid if the advance payment is essential to the successful completion of the activity.

 [Revoked, SOR/84-902, s. 23]

 Notwithstanding section 38, where the Minister has entered into an agreement to provide a contribution in respect of a project, the Minister may not more frequently than once every month make payments with or without holdbacks, on account of the contribution if the payments are, in his opinion, essential to the successful completion of the project.

  • SOR/84-752, s. 1

PART XIIIGeneral

 Notwithstanding any other provision of these Regulations, the Minister may only make payment on account of a contribution on the basis of claims for payment submitted by the applicant that have supporting documentation that is satisfactory to the Minister.

 Subject to section 57 but notwithstanding any other provision of these Regulations, the Minister, in calculating the cost of a project or activity, shall not take into account any costs incurred by the applicant prior to July 15, 1983.

  • SOR/84-226, s. 4

 If a proposed project or activity

  • (a) has a high risk of failure but has a commensurate opportunity to achieve a high rate of return, or

  • (b) is of such a nature that it merits a contribution but a non-repayable contribution would not be in the public interest or the applicant does not wish to receive a non-repayable contribution,

any contribution made by the Minister in respect of the project or activity shall be a repayable contribution.

 [Revoked, SOR/84-902, s. 24]

 The rate of interest payable pursuant to section 11 of the Act is the lowest rate charged by the Federal Business Development Bank on its term loans on the day the first payment on account of the contribution was made pursuant to the Act.

  • SOR/84-226, s. 5

 The Minister shall not make a contribution to an applicant in respect of the cost of the services of any consultant that is not at arm’s length from the applicant.

 

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