Frequently Asked Questions

1. What is the Language Industry Program (LIP)?
2. Who is eligible for the LIP?
3. What is covered?
4. How are contributions calculated?
5. How to submit an application?
6. What happens when an applicaton is approved?
7. How will the repayment be carried out?

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1. What is the Language Industry Program (LIP)?

Included in the Action Plan for Official Languages of the Government of Canada, the LIP provides financial support which seeks:

• To raise awareness of the Canadian language industry in Canada as well as in foreign markets through marketing and branding activities that help the companies in this sector promote their expertise, their products and their services;
  
  
• To promote the expansion of Canadian companies in these markets;
  
  
• To foster innovation, to improve productivity and to increase the number of language professionals in Canada.

2. Who is eligible for the LIP?

Canadian language industry companies working in translation, interpretation, dubbing, language technologies and language training are eligible under the LIP.

To be eligible for the LIP, companies must:

• Be incorporated;
• Be headquartered in Canada;
• Have been in business for at least one year;
• Have at least two employees;
• Submit a project which contributes toward achieving the goals of the LIP.

Ineligible applicants include: 

• Non-profit organizations and public schools; the LIP is directed solely at private companies;
• Self-employed workers; to be eligible, a company must have at least two employees;
• Companies in sectors other than the language industry who want to use the LIP to cover the costs of translation.

3. What is covered?

The following two sections explain in detail the activities and costs covered. Only these expenses will be authorized in the application for contribution and the application for reimbursement.

A. Activities

Eligible activities are those which, in the opinion of the Minister, will contribute toward achieving the goals of the LIP. Please allow at least 60 days between the closing date and the start date of the activities.

Examples of eligible activities: 

• Participation in trade fairs and trade missions (see specific provisions set out in the section Submitting an application);
• Participation in conferences as a speaker;
• The development of marketing plans and communications strategies;
• The creation of information products (videos, compact discs, posters, brochures, inserts and web sites). Please note that the wordmark Canada must appear on all these products, but the use of the Industry Canada partnership logo is preferable;
• The revamping of web sites.

Examples of ineligible activities: 

• Participation in conferences as a delegate;
• The development of applications (content management systems, management tools for student records, on-line test evaluations, etc.);
• The purchase of advertising space;
• Contracts for the distribution of flyers.

B. Costs

Eligible costs are those incurred by recipients which, in the opinion of the Minister, are deemed reasonable and necessary to carry out the activities supported. Such costs must be incurred only after both parties have signed the agreement. For information related to travel expenses, please see the Treasury Board Secretariat policy.

Examples of eligible costs: 

• Costs associated with the activities approved in the application;
• Transportation, lodging, shipping costs for materials and registration fees for trade fairs and conferences;
• Rental of space at trade fairs and the organization of meetings with potential clients;
• Administrative costs, such as photocopying, Internet access and communication costs (see Treasury Board Secretariat policies;
• Costs related to the creation of information products: editing done by a third party, graphic design, printing, etc.;
• Cost of translation and interpretation performed by third parties;
• Fees paid to an independent consultant. Companies have the sole responsibility for choosing the proposal that is best suited to the completion of their project. The fees for consultants and other professionals as well as the costs associated with the consulting services must be real and reasonable, as confirmed in a written estimate. These estimates must be kept on record.

Examples of ineligible costs: 

• Any expense which was not approved in the application;
• Costs incurred or paid for before the date on which both parties signed the agreement;
• Costs related to the development of applications;
• The purchase of equipment, software and promotional items such as pencils and T-shirts;
• The fees paid to a consultant who is at arms-length with the company;
• The fees paid to lobbyists;
• The purchase of advertising space;
• Salaries.

4. How are contributions calculated?

• A company can only receive one contribution per fiscal year. The fiscal year begins on April 1st and ends on the following March 31. An application may include several activities, but each must be described in detail.
  
  
• Multi-year projects are not funded. Projects must be completed by March 31 of the current fiscal year.
  
  
• The LIP covers 50 per cent of the eligible costs up to a maximum of $10,000 per company, per year.
  
  
• The total financial assistance from governments (federal, provincial, municipal) for a project submitted to the LIP cannot exceed 75 per cent of the eligible costs.

5.  How to submit an application?

• To submit an application, a company needs to fill out the electronic form* and attach all the documents requested.
  
  
• Changes to the form can be made prior to the closing date, but not afterwards.
  
  
• To be evaluated, an application must be complete and the activities proposed must be aimed at achieving the goals of the LIP. The project evaluation team will respond within 60 days following the closing date.

* If certain documents are only available in hard-copy format, they can be forwarded by mail to the address indicated on the LIP Internet site. PDF and HTML forms may also be completed manually.

6.  What happens when an application is approved?

• A government contribution agreement will be issued. It sets out the terms of the agreement including the amount of the contribution.
• Also included will be a claim form and instructions on how to submit an application for repayment. The receipt of these documents constitutes the authority needed to proceed with the project.

7. How will the repayment be carried out?

The repayment will be remitted only after the following documents have been received: 

• A duly completed form IC1217 (Applicant’s Claim Summary);
• A detailed expense report;
• A document signed by an authorized representative of your company confirming that: 
• The company actually incurred and paid all the eligible costs for which it seeks compensation;
• Such costs relate solely to the activities listed in the application;
• The claim submitted is final and no subsequent claims will be made;
• A project report (a few pages in length) outlining the results obtained in terms of their contribution to the goals of the LIP.

No partial repayment or advance will be made.

Note: Environmental assessment

Should you obtain a contribution from Industry Canada, your project proposal may be subject to an environmental assessment before the funds can be approved. A project must undergo an environmental assessment where it is viewed as work or an activity falling within the inclusion list.

Work

Work is defined as any project aiming to build, use, modify, decommission, close, etc. an existing or new structure occupying permanent space. Industry Canada is currently involved in the following work (partial listing): 

• The construction of radio pylons and antennas;
• The construction, modification and use of works (ie. buildings) to support broadband services, technological and research activities, new operations and native initiatives, among others;
• The construction and use of recreational and community facilities such as trails, bridges, campgrounds, parks, etc;
• The construction, modification and use of infrastructure related to water, sewers, electricity, roads, bridges, heating and cooling, etc.;
• The installation of under-water cables.

Activity

Activities not related to a work are also subject to an environmental assessment if they appear in the Inclusion List Regulations under the Canadian Environmental Assessment Act. Industry Canada is rarely called upon to approve projects involving activities alone. A fair number of activities in the Inclusion List Regulations also fall under the Law List Regulations and the Comprehensive Study List Regulations.

For further information, please see the inclusion list on the Justice Canada web site.

Exclusion

Projects conforming to one or the other, or both criteria mentioned may be excluded from the environmental assessment process if they have little impact on the environment. For further information, please see the list of exclusions allowed by the Canadian Environmental Assessment Agency.