Message from the President

A GRADUAL RETURN TO BUSINESS AS USUAL

Challenges ahead but also opprtunities that R&D Capital can help you seize

We are now in the last quarter of 2021, which fortunately is enabling us to foresee the return of an increasingly normal social and business environment – after more than 20 months of restrictions and health measures of all kinds.

That said, the vast majority of businesses have adapted admirably to this situation, developing various strategies to continue their operations and maintain adequate customer service.

As a financial institution, R&D Capital has worked closely with many companies in different sectors during this unusual period. We were able to witness the resilience of entrepreneurs and their ability to face adversity with courage. Over the past year, R&D Capital has seen a significant increase in the number of companies it supports in the Canadian market outside Quebec, a trend that illustrates the strength and dynamism of our entrepreneurs.

Gradual return to a more standard business and taxation environment

In the meantime, the anticipated end of the pandemic has led governments to cut certain exceptional measures, including the federal wage subsidy for businesses, which was terminated October 23. We are also seeing a return to normal practices by governments in the processing of tax credit applications, including more frequent fiscal and scientific audits. As a result, companies must wait longer for their tax credit refunds.

These factors make it even more important for companies to be able to finance their tax credits to maintain a sufficient level of liquidity and to continue their development at a good pace. I would like to remind you that R&D Capital can finance up to 150% of your refundable tax credits.

In Quebec, companies recently received good news with the Quebec government’s decision to increase the refundable tax credit for investment, innovation and information technology (usually called C3i) by up to 40%. For companies, this tax credit enhancement means additional financing leverage that R&D Capital can also offer you. For more information on our financing products, you may contact us by e-mail at nrodye@rdcapital.ca or by phone at (416) 575-0403.

During this period of a gradual return to business as usual, which contains both challenges and opportunities, I would like to wish you an excellent end of the year 2021. May it be the forerunner of a prosperous and successful year 2022.

Pierre Binette
President
R&D Capital