[Government Funding Tip] What does incurred cost mean?

Today we open up a series of tips that we will be sharing with you. They will help you to understand the hidden nuances of the government funding programs better, select the right project to apply and¬ get funded.

So, today we will look into the nuances of eligible costs. Those costs may include capital, labour or others depending on the program rules.

What is common for all programs is that in order to be eligible the costs must be incurred after the start date of the approved project. What does incurred mean?

1. You¬ can’t pay the cost, partially or fully, prior to the start date¬†set by the government in approval letter or contribution agreement.

2. You must not sign the lease or advance financing towards eligible cost prior to the start date. Securing a line of credit or commercial mortgage is acceptable as long as the money is not advanced.

3. You¬ can’t start the approved project activities prior to the start date. For example, the training can’t start, the equipment can’t be delivered to the production facility, or the person can’t be hired before the start date.

4. Some exceptions apply. Some export development and business expansion funds allow incurring some costs before the project start date or approval date.

If you are still not sure whether your project costs are eligible for government funding,¬ fill out eligibility check form, and one of our funding specialists will get back to you within 2 business days.