Is the SR&ED program a kind of grant, repayable loan or equity investment?
No. SR&ED program is neither of these. This is an Incentive Tax Credit (ITC) program that the government gives away to foster innovation and R&D in Canadian economy. Unlike grants that may be given to use for specific purposes, your cash refund or tax credit can be used with no restrictions. You are neither required to repay any portion of the tax benefit nor dilution will occur to your companys equity as a result of a participation.
