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Most Canadian companies approaching compliance for the first time treat it as a cost. SOC 2 audits, gap assessments, penetration testing, GRC platform subscriptions, consulting fees: it adds up. What many do not realize is that a significant portion of these costs can be funded through the National Research Council's Industrial Research Assistance Program (NRC IRAP).
IRAP is designed to help Canadian companies innovate and grow. A project to build a formal cybersecurity program, one that enables you to pass security reviews, answer questionnaires confidently, and eventually achieve SOC 2 or ISO 27001 certification, fits squarely within the program's mandate. It is a technology-driven initiative that directly expands your addressable market.
We have helped Canadian companies secure IRAP funding for compliance work, and the program can cover a meaningful portion of the total engagement cost.
What Is NRC IRAP?
The National Research Council Industrial Research Assistance Program provides advisory services and funding to help Canadian small and medium-sized businesses increase their innovation capacity and competitiveness. The program supports projects that develop or improve technology-driven processes, products, or services.
Cybersecurity compliance fits this definition when framed correctly. Building a security program is a technology initiative: it involves implementing controls, deploying monitoring tools, configuring cloud security settings, automating evidence collection, and integrating GRC platforms into your operational stack. These are technical activities that enhance your company's capabilities and competitive position.
Who qualifies
Incorporated, for-profit Canadian businesses with 500 or fewer full-time employees. Your company must be pursuing growth through technology-driven innovation. IRAP eligibility is assessed by an Industrial Technology Advisor (ITA) assigned to your region.
What Compliance Activities Can IRAP Fund?
IRAP funding can apply to a range of cybersecurity compliance activities, not just gap assessments. The key is that the work must be structured as a technology project with clear objectives and deliverables.
Activities that typically qualify
- Security gap assessments that map your current state against frameworks like SOC 2, ISO 27001, or NIST
- Security program design and implementation, including policy development, control implementation, and architecture documentation
- Penetration testing with remediation and retesting
- GRC platform configuration and integration (Secureframe, Vanta, Drata)
- Security Posture Reports that document your program for prospects and partners
- Ongoing program operation when structured as a technology advisory engagement
The scope of what IRAP covers depends on how the project is defined in your application. A well-structured proposal that frames compliance as building technical capability, not just passing an audit, positions the project for approval.
How funding works
IRAP typically covers a portion of eligible project costs through contribution agreements. Funding amounts vary based on the project scope and your company's situation. The engagement can be invoiced on an hourly basis to align with IRAP's requirements, even when the underlying consulting engagement uses fixed pricing. This gives you budget certainty while maximizing the funding you can draw.
Why Compliance Is a Growth Investment, Not a Cost
The framing matters, both for IRAP applications and for your own decision-making. Companies that treat compliance as a cost to minimize tend to do the bare minimum and end up rebuilding every cycle. Companies that treat it as a growth investment build something durable.
Enterprise deals require it
Buyers in financial services, healthcare, government, and enterprise procurement will not sign a contract without documented security. A SOC 2 report or a well-structured Security Posture Report removes this blocker. If you have ever lost a deal or delayed a close because of a security review, the ROI calculation is straightforward.
It compounds over time
The first year of a compliance program is the most expensive. After the security program is built, ongoing operation costs drop significantly. Year two costs a fraction of year one. IRAP funding applied to the first year reduces the highest-cost phase.
You do not need a full audit to start
A Security Posture Report, a penetration test, and the ability to respond to security questionnaires confidently can be enough to close deals where a formal SOC 2 report is not yet mandated. This lets you generate revenue from your security investment while the full audit process runs in parallel.
Choosing the Right Starting Point
Not every company needs to jump straight to a full SOC 2 audit program. The right starting point depends on what your buyers are actually asking for.
If buyers are asking security questions but not mandating SOC 2
Start with a Security Review Package. This gives you a documented security program, a penetration test, a Security Posture Report you can share with prospects, and security questionnaire support. IRAP funding can cover a significant portion of this. If you later move to a full SOC 2 program, the work carries forward: credits apply toward the full engagement, and the penetration test remains valid for 12 months.
If buyers are mandating SOC 2 or ISO 27001
Start with the full program. A gap assessment establishes your current state, followed by building and implementing controls, configuring your GRC platform, and preparing for audit. IRAP funding applies to the consulting and technical implementation work. The framework you choose depends on your market: SOC 2 is more common for North American buyers, ISO 27001 for international or regulated industries.
If you need both
Build one security program and map multiple frameworks onto it. The compliance automation ROI improves significantly when a single program supports SOC 2, ISO 27001, and security questionnaires simultaneously rather than treating each as a separate project.
How to Apply for IRAP Funding
The application process works through your assigned Industrial Technology Advisor (ITA):
1. Contact NRC IRAP through their website or regional office. You will be assigned an ITA who evaluates your company and project fit.
2. Define the project scope with your ITA. Frame the compliance initiative as a technology project: building security infrastructure, implementing automated monitoring, deploying a GRC platform, and developing technical documentation.
3. Submit a project proposal through your ITA. Include objectives, timelines, deliverables, and budget. Emphasize the technical work involved, not just the compliance outcome.
4. Receive approval and begin work. The contribution agreement defines the funding terms. Work can begin according to the agreed timeline.
5. Invoice according to IRAP requirements. Eligible costs are typically invoiced on an hourly basis. Your compliance partner should be able to structure invoicing to align with IRAP's format while maintaining budget certainty on the overall engagement.
Timing matters
IRAP funding is competitive, and contribution agreements have defined project windows. If you have an active IRAP relationship or approved funding, structuring your compliance engagement to maximize the funded portion before the window closes is important. Delaying the start of the project can mean leaving money on the table.
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Book a Strategy CallFrequently Asked Questions
Can NRC IRAP funding be used for SOC 2 compliance?
Yes. IRAP funding can cover a significant portion of SOC 2 compliance costs when the project is framed as a technology initiative that enhances your company's capabilities and competitiveness. Eligible activities include gap assessments, security program design and implementation, penetration testing, GRC platform configuration, and ongoing security operations.
How much IRAP funding can I get for cybersecurity compliance?
Funding amounts vary based on project scope, company size, and IRAP's assessment of the project. Contribution agreements typically cover a portion of eligible project costs. Contact your assigned Industrial Technology Advisor (ITA) for specific funding ranges applicable to your situation.
Does IRAP cover ISO 27001 as well as SOC 2?
Yes. IRAP funding is not limited to a specific compliance framework. Any cybersecurity compliance initiative that involves building technical capability, whether targeting SOC 2, ISO 27001, CMMC, or other frameworks, can potentially qualify. The eligibility depends on the project's technical merit and growth impact, not the specific certification being pursued.
Do I need to start with a gap assessment?
Not necessarily. While a gap assessment is a common starting point, IRAP funding can apply to broader engagements that include program design, control implementation, penetration testing, and ongoing operations. Some companies start with a Security Review Package that provides an immediate security story for prospects, then progress to a full audit program.
Can I use IRAP funding with a fixed-price consulting engagement?
Yes. The consulting engagement can use fixed pricing for budget certainty while structuring IRAP-eligible invoicing on an hourly basis. This is a standard approach that lets you maximize your IRAP funding while maintaining predictable costs for the overall project.
How long does the IRAP application process take?
Timelines vary, but companies should expect several weeks between initial contact with an ITA and project approval. If you have an existing IRAP relationship, the process is typically faster. Given that contribution agreements have defined project windows, starting the application process early ensures you can begin compliance work while funding is available.
What if my buyers don't require SOC 2 yet?
A Security Review Package provides a documented security program, penetration test results, and a Security Posture Report you can share with prospects without committing to a full SOC 2 audit. This is often sufficient for security reviews where a formal audited report is not mandated. If you later pursue SOC 2, the work carries forward with credits applied toward the full engagement.
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We've helped Canadian companies secure and apply IRAP funding for compliance.
Book a Strategy CallAbout the Author
Ali Aleali, CISSP, CCSP
Co-Founder & Principal Consultant, Truvo Cyber
Former security architect for Bank of Canada and Payments Canada. 20+ years building compliance programs for critical infrastructure.