Saskatchewan Lean Improvements in Manufacturing (SLIM)

2. Project Streams:

• Efficiency Stream: 50 per cent of eligible expenditures.
• Emissions Reduction Stream: 60 per cent of eligible expenditures.
• Expansion Stream: 50 per cent of eligible expenditures.

Maximum Funding

1. An applicant’s maximum funding cap is determined by assessing the project size against the Tiered Funding Model.

Tiered Funding Model

Tier 1: Project size of

Tier 1: $50,000 to $1,000,000

Tier 2: Project size greater than

Tier 2: $1,000,000 to $5,000,000

Tier 3: Project size greater than $5,000,000

Maximum funding up to $300,000* | Maximum funding up to $500,000* | Maximum funding up to $750,000*

Project Size

1. Project size is calculated by the sum of the approved eligible expenses under the SLIM program and additional allowable expenses as indicated in the table below.

• All project size costs must be attributable to the project, verifiable and incurred between April 1, 2023, to time of final claim submission.

2. Each completed project under the SLIM program cumulatively contributes to the project size over the Sustainable CAP SLIM Program.
3. Total eligible project expenditures must be a minimum of $50,000 per application to be eligible for rebate.

*Applicants will be given a predicted tier for their project after a business analysis is submitted based on estimated project size. The tier of each application/project is determined by the cumulative approved project size at time of final claim.

1. Project Size Allowable Expenses: Project size is calculated by the sum of the total approved and claimed eligible expenses and the allowable project size expenses as indicated below.

Allowable**; Project Size Allowable Expenses Contributions toward Project Size include but are not limited to the following:: Not allowable

Project Size Allowable Expenses Contributions toward Project Size include but are not limited to the following:: Building infrastructure

Project Size Allowable Expenses Contributions toward Project Size include but are not limited to the following:: Construction costs

Land purchase

Labour or wages

Shipping

Inventory

Software not directly attributable to improving automation or manufacturing processes

Trademark or patent purchases of other intellectual property

Utilities

Taxes, brokerage, legal costs or interest/financing costs

Office equipment

Startup operating costs

Ongoing business expenses

**These expenses contribute to the overall project size that determines the tier of the applicant and the maximum funding cap. They are not eligible for rebate under the SLIM program.

Interim Claim

1. Submitting an interim claim is optional and only one interim claim per project can be submitted for consideration under the following conditions:

• The SLIM project has received ministry approval.
• The claimed items have been approved and are fully installed, paid in full, and operational prior to requesting an interim payment. Submission of proof of payment (cheque image, bank statement etc.) is required.
• A 15 per cent holdback will be placed on all approved interim claims until the project has been completed and the final claim submitted. Holdback payment subject to maximum funding available.
• At least $200,000 in approved eligible expenses must be incurred and submitted to be eligible for an interim payment.
• The maximum of all interim payments cannot exceed $300,000 excluding the holdback.
• The provided claim form is fully completed and accompanied by a copy of all invoices for the completed work.
• An interim claim must be received at least 12 weeks prior to the applicant’s final claim deadline. Interim claims received less than 12 weeks prior to the final claim deadline will not be processed.

Final Claim

1. Applicants must submit claims to the Ministry of Agriculture’s Programs Branch.
2. Final claim can be submitted when equipment and materials are installed, fully paid for and operational. SLIM program requirements must be met prior to payment of any claim. An interim claim is not required to submit the final claim.
3. Applicants are responsible for obtaining and complying with any permits, licensing, or approvals required and for incorporating any relevant mitigation measures for your project.
4. Submission of a completed claim form, copies of all invoices and proof of payment (cheque image, bank statement etc.) is required to process the claim.

Business Analysis:

1. A business analysis is a review of the facility's current production methods and identifies where efficiencies can be gained or new technologies adopted to increase productivity, expand production or reduce emissions.
2. Approval to proceed with a business analysis and all of the required components of the report will be provided to eligible applicants after submission and ministry review of the pre-approval application form to ensure your company is eligible under SLIM.
3. The business analysis can be completed internally if the capability exists. All requirements of the report remain the same. Business analysis internally prepared is not eligible for in-kind rebate under the program.
4. Business analysis undertaken by an independent third-party consultant with experience and knowledge of efficient manufacturing principles, productivity and systems efficiency is eligible for rebate, subject to any funding caps indicated. The ministry does not provide referrals or recommendations on consultants.
5. Third-party business analysis reports will be eligible for rebate even if the applicant does not proceed with the project application or if the project is not approved. However, applicants must receive approval before beginning the business analysis.
6. A business analysis completed by third-party contractor can receive 50 per cent of the eligible costs to a maximum of $20,000. Third-party business analysis includes costs incurred for the following, but not limited to:

• Consultant fees;
• Consultant site visits to conduct efficient manufacturing assessments;
• Commercial assessments;
• Engineering, electrical or emissions reduction specialists who provide expertise and analysis to the identified improvements;
• Automation or manufacturing processes or technology improvements, engineering and technology design;
• Greenhouse gas emissions-reduction assessments and process audits relevant to the SLIM project stream(s);
• Third party costs directly related to developing the assessment of:
• New technology, including design;
• Equipment increasing labour productivity;
• Equipment increasing manufacturing capacity and expansion capability of producing new products in the facility; and
• Emission reduction equipment or infrastructure.

Efficiency Stream—50 per cent rebate of the following eligible expenditures:

1. Projects that result in cost-savings for the business, including but not limited to, reducing food or water waste, improving water quality or water use efficiency within the value-added production process.
2. Purchase of new or refurbished equipment and machinery replacing existing equipment and achieves processing efficiencies.

• Equipment must be new or refurbished. Refurbished equipment must be purchased from a reputable dealer or equipment manufacturer (arms-length transactions). In the event of any disagreement, final approval will be at the discretion of the ministry. It is recommended that applicants discuss refurbished equipment purchases with a program specialist before purchasing the equipment.

3. Nominal structural adjustments and renovations of buildings, including rental of equipment required to undertake the renovations.
4. Installation, delivery, shipping/handling fees and construction expenses provided by an independent third party.
5. Training costs directly related to the project (e.g., cost of independent third-party trainer, books, registration fees). Activities must have a significant impact on productivity and represent progressive development from equipment and processes currently used.
6. Consultation, design, engineering and related training provided by a third-party.
7. Software that is imbedded in eligible equipment and directly contributes to processing efficiency.

Emissions Reduction Stream—60 per cent rebate of the following eligible expenditures:

1. Anaerobic digestion of food waste, conversion of biogas into electricity, heat or renewable natural gas.
2. Upgrades to improve energy resource efficiency:

• Energy efficiency improvements to the building envelope including but not limited to lighting, ventilation upgrades and efficiency improvements to heating, refrigeration, cooling and water heating.
• The adoption of alternative energy sources such as solar, wind power or combined heat and power projects.

Expansion Stream—50 per cent rebate of the following eligible expenditures:

1. Water development projects including wells, connection to rural water utility, converting non-potable water to potable water and pipelines for commercial use.
2. The purchase of equipment, shipping and installation costs related to the addition of new product processing lines complimentary to processing already being undertaken. This would generally use the same Canadian agricultural commodities already sourced for processing but will result in the production of new products being developed.

• Equipment must be new or refurbished. Refurbished equipment must be purchased from a reputable dealer or equipment manufacturer (arms-length transactions). In the event of any disagreement, final approval will be at the discretion of the ministry. It is recommended that applicants discuss refurbished equipment purchases with a program specialist before purchasing the equipment.