CANtex - Canadian Textiles Program

CANtex is a Government of Canada initiative that enables eligible Canadian textile manufacturers to improve their competitiveness and take advantage of new opportunities. CANtex provides financial assistance to textile manufacturers for projects related to textile production activities in the following areas:

• implementation of textile production processes to increase productivity;
• implementation of a project to re-engineer textile production processes and/or retool production equipment and facilities to produce higher-value-added textile products.

Eligibility Criteria

Canadian companies established prior to June 27, 2002 and created for the purpose of manufacturing textiles.

Summary

CANtex Components

CANtex consists of two components: a Productivity Component and a Transformative Component.

Productivity Component

The Productivity Component provides CANtex assistance to textile manufacturing companies that are undertaking initiatives to improve their production efficiencies.

Eligible costs for projects under the Productivity Component include the following:

• studies to identify appropriate textile-production efficiency initiatives;
• planning that is directly related to the project;
• consultant and professional service fees directly related to the project (fees related to the cost of preparing an application are not eligible);
• staff wages and salaries directly related to the project
• equipment installation, engineering, software and staff training costs directly related to the project

Note: Capital costs — including equipment, land and building costs — are not eligible for assistance under the Productivity Component.

The Productivity Component consists of non-repayable and repayable contributions, with the following maximum assistance rates:

• Non-repayable contributions will be provided at a rate of up to 50% of eligible project costs, to a maximum of $100 000.
• Repayable contributions will be provided at a rate of up to 50% of eligible project costs, to a maximum of $500 000.

Project contributions greater than $100 000 are repayable in full.

Transformative Component

The Transformative Component is for textile manufacturing companies that want to transform at least a portion of their current textile production from lesser-value-added products to higher-value-added products that are targeted at growth niche markets.

Eligible costs for projects under the Transformative Component include the following:

• studies directly related to the project, or studies to identify appropriate textile-production efficiency initiatives and/or to assess market opportunities for new or different textile production capacity;
• planning directly related to the project;
• consultant and professional service fees directly related to the project (fees related to the cost of preparing an application are not eligible);
• staff wages and salaries directly related to the project;
• equipment installation, engineering, software and staff training costs directly related to the project;
• capital costs, including equipment costs but not land and building costs;
• marketing costs directly related to the project (cannot exceed 20% of total eligible project costs).

The Transformative Component of CANtex consists only of repayable contributions, with the following maximum assistance rates:

• Repayable contributions will be provided at a rate of 50% on the first $2 million of eligible costs, 40% on the next $2 million, and 30% on costs above this amount, to a maximum total repayable contribution of $3 million in assistance.

For example, a project with $8 million in total eligible costs could receive $3 million in assistance ($1 million on the first $2 million, $800 000 on the next $2 million, and $1.2 million on the last $4 million).

Repayment Terms and Conditions

Repayment terms and conditions will depend on the size of the contribution, the project time frame and the financial capability of the recipient.

CANtex Program Duration

Applications will be accepted no later than March 31, 2009, depending upon program uptake. Final disbursements must be made by March 31, 2010.

Applying for CANtex Assistance

Interested textile manufacturing companies are encouraged to contact a CANtex representative at one of the offices listed below to discuss potential submissions before applying. Applications and further program details can be found online.

Alberta Contact(s):
See National Contact.