SR&ED financing is a loan secured against your eligible Scientific Research and Experimental Development tax credits. Instead of waiting 6-18 months for the CRA to refund your claim, you get up to 75% of the expected refund within weeks. A complete guide for Canadian businesses.
The Canadian government's Scientific Research and Experimental Development (SR&ED) program returns up to 35% of your eligible R&D spending as a refundable tax credit — but the CRA typically takes 6 to 18 months to process the refund. SR&ED financing is a loan that advances up to 75% of your expected refund within weeks, so you can fund the next phase of R&D without waiting on the CRA.
Six questions every CFO and founder asks before applying for SR&ED financing.
Canadian-controlled private corporations (CCPCs) that have filed SR&ED claims previously, or are about to file for the first time with a credible technical narrative. Alliance lenders typically require at least one prior accepted claim, though first-time claims can be financed with stronger documentation.
Typically up to 75% of your expected SR&ED refund. For example, if your prepared T661 claim shows an expected refund of $400,000, financing up to ~$300,000 is realistic. Some lenders go to 80-85% on lower-risk claims with strong technical merit.
SR&ED loan rates typically range from prime + 4% to prime + 8% per annum, plus a one-time origination fee of 1-2%. Loans are interest-only until your CRA refund arrives, then repaid in full from the refund proceeds.
Alliance can typically pre-qualify within 5-7 business days of receiving your prepared T661 SR&ED claim, prior-year financials, and current shareholder confirmation. Funding follows within 1-2 weeks of complete diligence.
Most SR&ED loans are structured against the FILED claim amount with a hold-back (typically 15-25%) to absorb any partial denial. If the CRA reduces your refund, the lender takes the loss against the hold-back; if the reduction exceeds the hold-back, you cover the gap from operating cash.
Banks generally don't lend against SR&ED receivables — they're considered too speculative without a contracted payor. Specialty SR&ED lenders have built underwriting around CRA refund risk specifically, which is why they can lend at higher LTVs and faster turnaround than a chartered bank.
Work with your SR&ED consultant or in-house technical writer to prepare the T661 claim. Most lenders require a draft or filed claim before approving financing.
Submit a one-page Alliance application with your T661, two years of financials, and current shareholder confirmation. We pre-qualify within 5-7 business days.
Lender funds 60-75% of expected refund within 1-2 weeks of complete diligence. Funds wired direct to your operating account.
When CRA processes your refund (typically 6-18 months later), the refund flows through the lender's trust account to repay the loan principal and interest. Any surplus comes back to you.
Alliance works with a panel of specialty SR&ED lenders, not generalist banks. Faster underwriting, higher LTVs, and structures designed for R&D-stage businesses.
Industry-leading advance rates against expected refund. Higher than most banks' commercial credit options.
Most pre-qualifications come back within a week of receiving complete documents. Funding within 1-2 weeks of diligence completion.
If you've never filed a SR&ED claim before but have credible R&D activity, Alliance can structure first-claim financing with the right technical documentation.
SR&ED financing is most powerful when used to fund the NEXT R&D phase before the CRA refund arrives — compounding your innovation cadence.
Alliance shops your file across multiple SR&ED-specialist lenders to find the best rate and structure. You apply once; we negotiate the offer.
Apply for SR&ED financing through Alliance. Pre-qualification in 5-7 days, funding within 1-2 weeks of complete documents.
Apply for SR&ED Financing