Support for Entrepreneurs and Economic Development (SEED) — Sector Support Capital Expansion Incentive

📋 Eligible Entities - Canadian small to medium-sized enterprises (SMEs) - Incorporated businesses and sole proprietorships - Businesses operating in eligible sectors (varies by regional administration) - Enterprises with demonstrated growth potential and viable business plans - Businesses that have secured external financing for capital purchases - Organizations must be in good standing with tax authorities ### 💰 Funding Details - Maximum Grant Amount: $15,000 per year - Program Duration: Up to 2 years (potential maximum of $30,000 total) - Repayability: Non-repayable grant (does not require repayment) - Matching Requirements: Applicant must secure external loan financing for the capital purchase; grant offsets a portion of loan interest costs - Interest Coverage: Grant applies to interest accrual on approved loan amounts - Funding Structure: Direct financial support; not contingent on matching funds from applicant ### 🛠️ Approved Expenses - Interest payments on loans for new capital equipment purchases - Interest costs associated with machinery and production equipment acquisitions - Financing fees related to approved capital expansion projects - Interest on loans for technology and digital infrastructure investments - Debt servicing costs for approved business expansion initiatives - Not eligible: Principal loan repayment, working capital, inventory, or operational expenses unrelated to capital asset purchases ### ⚠️ Conditions & Milestones - Applicant must provide evidence of secured external financing/loan agreement - Capital purchases must demonstrably support business expansion and growth - Eligible capital assets must be new (not used or refurbished equipment) - Annual reporting required on capital deployment and business metrics - Funds must be claimed within specified timelines following loan initiation - Applicant must maintain business operations throughout the grant period - Compliance with all federal and provincial business regulations required - Program funding subject to availability and competitive selection process - Maximum grant period: 24 months from initial disbursement date