Step 3: Read FAQs

To better understand the CANtex program, please read our Frequently Asked Questions (FAQs). They will help clarify the program's objectives; explain eligibility criteria for applicants, projects and costs; outline the parameters of the program; and bring transparency and clarity to the various elements of the program.

As the CANtex program continues to evolve, we will update the FAQs. Under no circumstances should requests for financial assistance under the CANtex program be considered as an entitlement.

1. Who is eligible to receive CANtex funding?
2. What projects are eligible for CANtex funding?
3. What costs are eligible?
4. What salaries are eligible?
5. What consulting fees are eligible?
6. Do I need a consultant to prepare a CANtex application?
7. Are legal fees eligible?
8. Does CANtex cover training for recently purchased equipment?
9. Are training materials (videos, manuals, software) eligible?
10. Is a recent start-up company eligible?
11. Can companies apply for funding for multi-year projects?
12. Can a group of eligible companies apply for funding through CANtex?
13. Can a firm submit more than one application?
14. What is the maximum contribution for a CANtex-funded project?
15. Are contributions repayable?
16. How long will this program be available?
17. How long will it take to receive an answer after the application is received?
18. What formal documentation is issued once a project has been approved?
19. Once my project has been approved, do I receive my money right away?
20. How will companies be reimbursed if they choose to use Universities to provide research/consulting services for a specific diagnostic project?
21. Who should I contact to find out more about CANtex, or to obtain an application form?

1. Who is eligible to receive CANtex funding?

Canadian companies established prior to June 27, 2002, and created for the purpose of manufacturing textiles. The applicant needs to demonstrate management capability and the financial wherewithal to undertake the activity and have a proven product or service with a history of sales in Canada or abroad. Companies eligible under the CANtex program include those textile manufacturers whose product lines correspond to specific HS codes. The list of HS codes is available in HTML and PDF format (24 Kb, 7 pages)

Non-manufacturing textile companies, apparel manufacturers, importers, distributors and designers are not eligible for CANtex.

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2. What projects are eligible for CANtex funding?

Eligible projects are those related to textiles production activities in the areas of: 

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

Examples of Projects eligible under CANtex include: 

• Diagnostic assessment to determine what improvements can be made to a manufacturing plant in order to improve productivity;
• Implementation of a lean manufacturing plan, which will result in improved efficiency in a manufacturing plant through improved workflow, reduced inventories, etc;
• Improved management information systems that provide more accurate job order costing to determine which product lines offer the greatest profit opportunities and identify areas where efficiency improvements are needed;
• Enhanced e-business capabilities that would allow customers to place and modify orders on line, track orders, and view new product lines, as well as make product enquiries on-line;
• Improved information systems that offer improved inventory management by accurately determining inventory levels and automatically initiating re-orders immediately upon reaching a specified inventory depletion level;
• Labour costs associated with re-engineering a plant to accommodate more energy efficient equipment and costs associated with assisting existing employees to become competent in the operation of new equipment;
• Assessment of a manufacturing operation in order to determine how it may implement programs that would reduce pollution and/or waste;
• Costs pertaining to software requirements and training materials for employees who are required to make a transition from conventional machinery to innovative and more efficient production machinery; and
• Acquisition of new equipment or modification of existing equipment (under Transformative Component only) to diversify production to higher value-added textiles and marketing elements directly related to these new products (marketing costs cannot exceed 20 percent of total eligible project costs).

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3. What costs are eligible?

Eligible costs are the costs incurred by eligible recipients that are reasonable and necessary for the completion of the eligible activities to which they are related.

Eligible costs for Non-repayable contributions include:

• Studies undertaken to identify appropriate textiles production efficiency initiatives
• 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; and
• Equipment installation, engineering, software, and staff training costs directly related to the project.
  
  Note: Capital costs including equipment, land and buildings costs are not eligible for non-repayable assistance.

Eligible costs for Repayable contributions include:

• Studies to identify appropriate textiles production efficiency initiatives and/or to assess market opportunities for new or different textiles production capacity; studies directly related to the project;
• Planning directly related to the project;
• Consultant and professional service fees directly related to the project;
• 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 but not land and building costs (under Transformative Component only); and
• Marketing costs directly related to the project (under Transformative Component only). Marketing costs cannot exceed 20 percent of total eligible project costs.

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4. What salaries are eligible?

Eligible salaries must be the actual, proven salaries of employees specifically hired to help complete the project or of employees who are currently employed in the company and help complete the project. Companies need to demonstrate that these employees are participating in the project. A separate accounting for the number of hours spent by employees on the project must be provided. With regard to the salaries of company executives and managers who are already employed with the company and are assigned to the project, these salaries are limited to a maximum of 20 percent of the total salaries of employees that are charged to the project. Salary records may be audited prior to final payment for proof of the amounts incurred.

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5. What consulting fees are eligible?

Fees for consultants, consulting services and other professionals that represent real and reasonable costs as set out in the consultant’s proposal are eligible. Companies using consultants are responsible for seeking out the best proposal for the completion of their project. The eligibility of consultant fees will be evaluated on a case-by-case basis. Only fees for a consultant who has an arm’s length relationship with the applicant are eligible.

A minimum of two (2) proposals will be required when consultant fees exceed $50 000. If the consulting fees exceed this amount, the application must be accompanied by competing bids, detailed documentation by the client to confirm that alternative proposals were considered, and a rationale as to why this particular individual/firm was selected.

Final payment cannot be made until the consultant’s report is filed and proof of payment representing the net costs to the consultant appears on the file. An applicant's financial records will be subject to audit. Consultants must be paid to carry out the work for which the company has received a contribution under CANtex. For an interim payment to be issued, there must be an interim report on file. Fees incurred prior to project approval are NOT eligible.

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6. Do I need a consultant to prepare a CANtex application?

No. The choice to hire a consultant to prepare a CANtex application is entirely up to the Applicant. However, it is important to note that consulting fees related to the cost of preparing an application are NOT eligible for CANtex funding, nor will preference be given to consultant-prepared applications.

The Applicant is required to represent and warrant that any person, whether hired as a consultant, or an in-house staff member, whose duty it is to speak or correspond with any employee of the Department of Industry, on the Applicant's behalf, concerning any issue relating to an Agreement, or concerning any benefit there under, is to be registered pursuant to the Lobbyists Registration Act R.S. 1985 c. 44 (4^th Supplement). The Applicant must further recognize that Sections 5 and 2 of that Act state, inter alia, that "An individual shall file with the registrar (…) a return (…) if the individual for payment, on behalf of any person or organization, undertakes to (…) communicate with a public office holder in respect of (…) the awarding of any (…) contribution or other financial benefit (…) not later than ten days after entering into that undertaking (that consulting agreement)”. Furthermore, it is Industry Canada policy that consultants and lobbyists cannot be paid on a contingency-style-basis, otherwise any proposal will be rejected.

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7. Are legal fees eligible?

The eligibility of legal fees will be considered if they are necessary/relevant to the success of the project.

8. Does CANtex cover training for recently purchased equipment?

Yes. Back to questions

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9. Are training materials (videos, manuals, software) eligible?

Yes. Costs related to training materials will be considered if they are necessary and relevant to the success of the project.

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10. Is a recent start-up company eligible?

No. A company has to have been established as a manufacturer prior to June 27, 2002.

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11. Can companies apply for funding for multi-year projects?

Yes. Back to questions

12. Can a group of eligible companies apply for funding through CANtex?

Yes.

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13. Can a firm submit more than one application?

Yes, for non-repayable contributions. However, each application must represent a stand-alone project and companies are limited to three concurrent projects.

For repayable contributions, a company may only submit one application at a time per production facility.

Total CATIP/CANtex program assistance cannot exceed $5 million per company over the life of the program.

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14. What is the maximum contribution for
CANtex-funded project?

CANtex includes both Non-repayable and Repayable contributions.

• Non-repayable contributions will be provided up to 50 percent of eligible project costs, to a maximum of $100 000.
• Repayable contributions will be provided at a rate of 50 percent on the first $2 million of eligible costs, 40 percent on the next $2 million, and 30 percent on the costs above this amount, to a maximum total repayable contribution of $3 million.
• Contributions towards projects that include capital costs, regardless of amount, are repayable in full. Any project contributions greater than $100 000 are repayable in full.

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15. Are contributions repayable?

Contributions up to $100 000 are not repayable, with the following exception: contributions involving capital costs regardless of assistance, amount are repayable.

Contributions over $100 000, as well as any contributions involving capital costs, are repayable in total.

Repayment terms and conditions will depend on the size of the contribution, project timeframe, and financial capability of the recipient. No repayment terms and conditions will exceed the Treasury Board of Canada Secretariat’s policy for repayment.

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16. How long will this program be available?

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

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17. How long will it take to receive an answer after the application is received?

Once all of the information necessary for the evaluation of the project is received and the application is complete, it is our goal to respond within 60 working days for non-repayable projects.

Response time for repayable projects will be longer and will depend on the nature and complexity of the project proposed by the applicant.

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18. What formal documentation is issued once a project has been approved?

A contribution agreement from the government will be issued stating what has been approved and the amount of the contribution. Receipt and acceptance of the contribution agreement will provide the applicant with authorization to proceed with the project. A claim form with instructions on how to submit claims will also be provided.

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19. Once my project has been approved, do I receive my money right away?

Contributions are paid upon the submission of a claim, which provides adequate documentation that costs have been incurred and paid, as well as a progress report or final report.

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20. How will companies be reimbursed if they choose to use universities to provide research/consulting services for a specific diagnostic project?

Universities and university students may be contracted as consultants under the program. Payment will be based on the contract with the consultant who must be at arm’s length to the company.

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21. Who should I contact to find out more about CANtex, or to obtain an application form?

For Head Offices located in All Provinces except Quebec: 

Industry Canada
Service Industries and Consumer Products Branch (SICPB) - CANtex
C.D. Howe Building, East Tower, 6^th Floor
235 Queen Street
Ottawa, ON K1A 0H5
Toll free: 1 888 268-0453
Fax: (613) 954-3107

For Head Offices located in Quebec: 

Canada Economic Development for Quebec Regions (CED)

Island of Montréal
3340 de l'Assomption Blvd.
Montréal, QC H1N 3S4
Telephone: (514) 283-2500
Fax: (514) 496-8310

Montérégie
1111 Saint-Charles Street West, Suite 411
Longueuil, QC J4K 5G4
Telephone: (450) 928-4088
Toll Free: 1 800 284-0335
Fax: (450) 928-4097

Estrie
65 Belvédère Street North, Suite 240
Sherbrooke, QC J1H 4A7
Telephone: (819) 654-5904
Toll Free: 1 800 567-6084
Fax: (819) 564-5912

Quebec – Chaudière-Appalaches
112 Dalhousie Street, 2^nd Floor
Quebec, QC G1K 4C1
Telephone: (418) 648-4826
Toll Free 1 800 463-5204
Fax: (418) 648-7291

For the other regions of Quebec:

Place du Centre
150 Marchand Street, Suite 502
Drummondville, QC J2C 4N1
Telephone: (819) 478-4664
Toll free: 1 800 567-1418
Fax: (819) 478-4666

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Step 4 - Download Application Form.

Step 1 - Read About CANtex
Step 2 - See Examples of Eligible Projects
Step 3 - Read FAQs
Step 4 - Download Application Forms