May 15, 2025
Getting money for your business without taking on debt sounds too good to be true. But business grants exist in Canada, and thousands of small companies use them every year. The problem is most owners never apply because the process feels too complicated or they do not know where to start.
This guide walks you through what grants are available in 2025, who can get them, and how to actually apply without making the mistakes that get most applications rejected.
A business grant is money from the government that you do not have to pay back. The federal and provincial governments set aside billions of dollars each year for businesses that meet certain requirements.
These programs exist because the government wants to grow the economy. When your business expands, you hire people. When you develop new technology, Canada becomes more competitive. When you export products, money comes into the country. Grants are investments in those outcomes.
Not every business gets a grant. You need to match what the program is trying to do. If a grant exists to help rural businesses buy equipment, your city-based company will not qualify. If the program funds technology adoption, your flower shop probably will not fit. The match matters more than anything else.
Most grants are non-repayable. That means once you get approved and use the money correctly, you keep it. But there are conditions. You need to spend the money on what you said you would. You need to report back on results. Some programs require you to match a portion of the funding yourself. If you break the rules, they can ask for the money back.
People mix up these funding types all the time, but they work differently.
Grants: Money you receive upfront or through reimbursement. You do not pay it back if you follow the program rules. Most grants cover a percentage of your project costs, not 100%. You need to have your own money or other funding to cover the rest.
Loans: Money you borrow and must repay, often with interest. Some government loans have lower interest rates or special terms. The Canada Small Business Financing Program backs loans from banks. The Business Development Bank offers loans with more flexible terms than traditional banks. You still owe the full amount.
Tax Credits: Reductions in the taxes you owe. SR and ED is the biggest example. You claim these when you file your tax return. Some are refundable, meaning you can get cash back even if you do not owe taxes. Others just reduce what you owe. Tax credits come after you spend the money, not before.
Financing: This is a broader term that includes loans, lines of credit, and investor money. Traditional bank financing requires collateral and good credit. Alternative financing companies offer faster approvals but charge higher rates.
You can use different types of funding together. A business might use a grant to cover 50% of a project, a loan for 30%, and its own cash for the remaining 20%. This is called stacking, and it is allowed for many programs.
Eligibility changes by program, but most grants share common requirements.
You need to be incorporated. Sole proprietors qualify for some programs, but most federal grants require you to be a registered corporation with a Canada Revenue Agency business number.
You need revenue. Many programs set minimum and maximum revenue thresholds. A program might require at least $500,000 in annual revenue to prove you are established. Others cap it at $100 million to keep the focus on small and medium businesses.
You need employees. Some grants require at least one employee beyond the owner. Others set caps at 500 employees.
You need to be viable. Grant programs do not fund failing businesses. You need to show financial stability through cash flow or a clear path to profit.
Your business must operate in Canada. You can export or work abroad, but your core activity must stay in Canada.
Some programs target specific groups. Women-owned businesses, Indigenous founders, youth entrepreneurs, rural businesses, and newcomers sometimes get priority.
The industry matters. A clean tech grant will not fund a salon. A manufacturing grant will not help a digital agency. Always match the purpose.
CDAP stopped accepting new applications in 2024. Businesses approved before closure can still complete their projects. Most provinces launched local replacements.
IRAP funds up to 80% of R and D costs. Smaller fast-track projects can receive $50,000. Larger projects can reach into the millions. It also provides youth wage subsidies.
CanExport covered up to $50,000 at 50% cost share. The 2025 intake ended in May. It often reopens yearly.
Funds 50% to 100% of youth wages. Supports seasonal hiring from 6 to 16 weeks.
Each region delivers its own grants for job creation, innovation, exports, and rural development. Funding ranges from $25,000 to six figures depending on the project.
This section lists major federal, provincial, and sector-based business grants and funding programs active or expected to continue through 2025.
Canada Digital Adoption replacements
Micro grants for websites, ecommerce, POS tools, marketing systems. Funding often ranges from $1,500 to $10,000.
Ontario Digital Main Street Grant
Supports websites, ecommerce, POS systems, and digital marketing tools. Funding often ranges from $2,500 to $10,000.
BC Launch Online Grant
Supports online stores, booking systems, and digital tools. Funding up to $7,500.
Alberta Digital Economy Program
Supports cloud systems, automation, and digital tools. Funding varies by intake.
Canada Summer Jobs
Funds youth wages at 50% to 100%.
Student Work Placement Program
Funds $5,000 to $7,000 per student hire.
NRC-IRAP Youth Employment
Funds up to $30,000 per graduate hire.
Canada-Ontario Job Grant
Covers employee training up to $15,000 per worker.
CanExport SMEs
Up to $50,000 for trade shows, foreign websites, compliance, and marketing.
Saskatchewan STEP Grant
Up to $10,000 for export growth.
Ontario Export Programs
Trade missions, compliance setup, and market research funding.
NRC-IRAP
Up to 80% of R and D costs.
SR and ED Tax Credits
35% to 65% refunds on R and D costs.
Mitacs Programs
Provides funded graduate research workers to companies.
Canada Greener Homes grants for select business sectors
Energy efficiency upgrades.
BC Clean Energy Vehicle Program
Fleet conversions and EV charging.
Alberta Emissions Reduction Programs
Carbon reduction pilots
FedDev Ontario Programs
$25,000 to $250,000 for expansion.
Western Economic Diversification Programs
Rural business growth.
Atlantic Canada Opportunities Agency Programs
Tourism, fisheries, manufacturing funding.
Prairies Economic Development Programs
Agro tech and manufacturing support.
Futurpreneur Canada
Loans up to $75,000 with mentorship.
Ontario Summer Company
Student business grants up to $3,000.
Indigenous Business Development Fund
Non-repayable Indigenous business funding.
Women Entrepreneurship Strategy Programs
Funding streams for women-led companies.
Ontario
Ontario Creates, Eastern Ontario Development Fund, Southwestern Ontario Development Fund.
British Columbia
Innovate BC, clean tech grants, ecommerce support.
Alberta
Alberta Innovates, digital economy support, R and D tax credits.
Quebec
Investissement Québec loans, equity, and guarantees.
Saskatchewan
Small Business Loans Association and export programs.
Manitoba
Manufacturing and innovation grants.
Atlantic Provinces
Tourism, fisheries, ocean tech, and rural funding.
Northern Territories
High-cost infrastructure and shipping grants.
Digital and Technology Adoption
Hiring and Workforce Development
Export and International Trade
Green and Clean Technology
Startups and Early-Stage Businesses
Rural and Regional Growth
Innovation and R and D
| Program | Who Qualifies | Max Funding | Purpose | Region |
|---|---|---|---|---|
| Digital Main Street | Local businesses | $10,000 | Website, ecommerce, POS | Ontario |
| BC Launch Online | Small businesses | $7,500 | Online store tools | British Columbia |
| Alberta Digital Economy | SMBs | Varies | Automation, software | Alberta |
| Trade Association Digital Grants | Members | $1,500 to $5,000 | CRM, cyber security | Canada |
| Program | Who It’s For | Wage Coverage | Duration |
|---|---|---|---|
| Canada Summer Jobs | Youth employees | 50% to 100% | 6 to 16 weeks |
| Student Work Placement | Students | $5,000 to $7,000 | Up to 16 months |
| NRC-IRAP Youth Program | Graduates | Up to $30,000 | 6 to 12 months |
| Canada-Ontario Job Grant | Workers | Up to $15,000 | Course based |
| Program | Max Funding | Covered Activities | Region |
|---|---|---|---|
| CanExport SMEs | $50,000 | Trade shows, marketing | Canada |
| STEP Export | $10,000 | Trade missions | Saskatchewan |
| Provincial Export Grants | $5,000 to $25,000 | Translation, compliance | Provincial |
| CanExport Innovation | $75,000 | Global R and D | Canada |
Getting grant approval takes planning. Here’s the real process.
Step 1: Find the right programs
Don’t waste time applying to programs you don’t qualify for. Read eligibility requirements completely. If you don’t meet even one requirement, move on.
Use government databases. The Canada Business Benefits Finder and Innovation Canada portal let you filter by location, industry, and company size. Provincial websites usually have similar tools.
Talk to advisors. Your regional development agency, local Chamber of Commerce, and small business center offer free help identifying programs.
Step 2: Assess your match
Grant programs want specific outcomes. A program funding job creation wants to see new positions. An export program wants to see new market entry. An innovation program wants to see new technology.
Read past recipient lists if available. This shows you what types of projects actually get funded. If everyone who got money was a manufacturer and you’re a service company, that’s a signal.
Check timing. Many programs operate on intake periods. Missing a deadline means waiting months for the next one. Applications also take time to prepare. If a deadline is two weeks away and you need to gather financial statements, write a project plan, and get quotes from suppliers, you probably can’t make it.
Step 3: Prepare your documentation
Start a folder now, before you need it. Collect:
Financial statements need to be prepared by an accountant. Grant programs may accept notice to reader statements for smaller amounts, but larger grants often require review engagement or audited statements.
Your business plan doesn’t need to be 50 pages. A 10-page document that clearly explains what you do, who your customers are, how you make money, and where you’re headed is enough for most programs.
Step 4: Write your application
Grant applications ask similar questions:
Be specific. “Grow sales” is not specific. “Increase sales by 25% in the Ontario market by acquiring 30 new wholesale customers” is specific.
Show cause and effect. Don’t just say you’ll do something. Explain why that activity leads to the outcome. “We will attend the XYZ trade show because our target customers attend this event. In past years, 1,200 qualified buyers from our target market registered. We will book 15 meetings and follow up within two weeks.”
Avoid jargon and buzzwords. Grant reviewers are not always experts in your industry. If you need to use technical terms, define them clearly.
Step 5: Get quotes and confirmations
Many programs require quotes or estimates for costs over certain amounts. You can’t just say “equipment will cost $50,000.” You need a quote from a vendor on letterhead showing the exact specifications and price.
If your project involves partners, get letters confirming their involvement. A grant program won’t take your word that University X will collaborate with you. They want a letter from the university.
Step 6: Submit and follow up
Submit before the deadline. Not on the deadline day. Technical problems happen. Portals crash. Internet goes down. Give yourself a buffer.
Most programs send a confirmation email. If you don’t receive one, contact the program immediately.
You may need to answer questions during review. Respond quickly and completely. Slow responses signal lack of commitment.
Step 7: If approved, read your agreement carefully
Grant agreements are legal contracts. They specify exactly what you can spend money on, when you need to complete activities, what reports you need to submit, and what happens if things change.
Pay attention to eligible costs. The program might fund equipment but not maintenance. It might cover salaries but not benefits. Buying something ineligible means you pay for it yourself.
Reporting requirements vary. Some programs want quarterly updates. Others just need a final report. Most require you to submit receipts, invoices, and proof of payment. Keep records organized from day one.
Step 8: Execute your project and claim funds
Most grants pay by reimbursement. You spend the money first, submit proof, then get reimbursed. This means you need cash flow to cover costs upfront.
Some programs pay a portion upfront after approval. CanExport works this way. Most don’t.
Submit claims promptly. Missing a deadline can forfeit your funding even after approval.
Grant programs reject more applications than they approve. Here’s why.
Not meeting basic eligibility requirements
This is the number one reason. People apply hoping the program will make an exception. They won’t. If you don’t have the required revenue, employee count, or location, your application gets rejected immediately.
Asking for ineligible costs
Every program has a list of what it will and won’t fund. If you include ineligible costs in your budget, reviewers assume you didn’t read the guidelines. That signals you probably won’t follow the rules if funded.
Vague project descriptions
“We will improve our operations” tells reviewers nothing. What specific improvements? Which operations? What problems exist now? How will this change solve them?
Unrealistic budgets
If an industry standard cost is $50,000 and you budget $10,000, reviewers know you haven’t done proper research. If you budget $200,000 for something that costs $50,000, they think you’re padding numbers.
Get real quotes. Show your math. If you estimate labor hours, explain the calculation: “Two employees at 20 hours per week for 12 weeks at $35 per hour = $33,600.”
No matching funds when required
If a program requires you to contribute 50% and your budget shows you’re using 100% grant money, you get rejected. Reviewers need to see where your contribution comes from.
Missing deadlines
Late applications don’t get considered. Even by five minutes. Systems lock you out automatically.
Incomplete applications
Missing documents, unsigned forms, or sections left blank all result in rejection. Most programs don’t give you time to fix these problems. They just decline you and move to the next applicant.
No clear benefit to Canada
Federal grants exist to strengthen the Canadian economy. If your project doesn’t create jobs, generate export sales, develop new technology, or produce some other clear benefit, reviewers have no reason to approve it.
You need to explicitly state the benefit in your application. “This project will create 3 new full-time positions in Sudbury, Ontario and increase our export sales by $500,000 annually, bringing foreign revenue into Canada.”
Even if you meet requirements, some things reduce your odds.
Poor financial health
If your financial statements show consistent losses, mounting debt, or negative cash flow, programs worry you’ll go bankrupt before completing the project.
No skin in the game
Programs like to see that you’re investing your own money. If you’re asking for 100% funding and contributing nothing, it suggests low confidence in the project’s success.
Projects that already started
Most grants don’t fund retroactive costs. If you already bought the equipment or started the work before applying, those costs won’t be covered.
Weak market research
If you say “we think there’s demand for this” without any evidence, reviewers doubt your project’s viability. Show market research, customer letters, or sales data proving demand exists.
History of non-compliance
If you received government funding in the past and didn’t submit reports, missed milestones, or misused funds, that follows you. Grant programs check applicant history.
Timelines vary dramatically by program.
Fast programs like the accelerated NRC-IRAP stream can approve small projects in a few weeks. Standard NRC-IRAP takes about three months from proposal to decision.
Regional development agency programs often take four to six months. They have multiple review stages and committee approvals.
Large programs with high competition can take six months or longer. CanExport aimed for decisions within 60 business days, which is about three months.
After approval, payment timing matters too. Reimbursement programs pay 30 to 90 days after you submit claims. This means you could be waiting nine months from application to receiving money in your bank account.
Plan accordingly. Don’t apply for funding in March if you need money in April. The process takes longer than most people expect.
Yes, for many programs. This is called stacking.
Government programs generally allow stacking as long as you don’t exceed 100% of your project costs from all sources combined. If your project costs $100,000, you can’t get $75,000 from Program A and $50,000 from Program B. That’s 125% coverage.
But you can get $50,000 from Program A, $30,000 from Program B, contribute $15,000 yourself, and take a $5,000 loan for a $100,000 project.
Some programs specifically prohibit stacking with certain other programs. Read the terms. If it’s not clear, ask before applying.
The most common stacks are:
You need to disclose all funding sources in grant applications. Hiding other funding is grounds for immediate disqualification and can result in all funding being revoked.
Manufacturing company in Guelph, Ontario
A metal fabrication shop with 35 employees wanted to buy CNC machining equipment. The machines cost $280,000. They applied to the Federal Economic Development Agency for Southern Ontario and received $84,000 (30% of costs). They took a loan from their bank for $140,000 and contributed $56,000 from cash reserves. The project let them take on higher-precision work and hire 4 new operators.
Software startup in Halifax, Nova Scotia
A 12-person SaaS company wanted to enter the US market. They applied to CanExport SMEs and received $45,000 to cover half their costs. They used the money for a booth at a software conference in San Francisco, website localization, legal fees to set up a US entity, and a consultant to help with US sales tax compliance. They signed 8 new US customers in the first year.
Tourism business in rural BC
An adventure tourism operator with seasonal revenue wanted to extend their operating season. They applied to the BC rural economic development fund and received $28,000. They used it to buy cold-weather gear, add heating to their base lodge, and market their new winter packages. Extending their season from 5 months to 8 months increased annual revenue by 40%.
Research-intensive cleantech company in Montreal
A company developing air purification technology received $125,000 from NRC-IRAP for their R&D project. They hired two recent engineering graduates through the Youth Employment Program, getting an additional $60,000 in wage subsidies. They also claimed SR&ED tax credits, recovering 50% of their eligible R&D costs. The combined funding covered 75% of their development costs over 18 months.
Getting money is one thing. Using it correctly is another.
Spending on ineligible costs
A business receives $30,000 for equipment but uses $10,000 to cover operating expenses instead. When the final report and audit come, they can’t provide receipts for eligible equipment. They have to repay the $10,000.
Missing deadlines
Programs often require you to complete projects within 6 or 12 months. If you miss the deadline without getting approval for an extension, you may have to return funding, even for work you completed.
Not keeping proper records
You need receipts, invoices, proof of payment, and documentation for every dollar spent. “I know I bought it but can’t find the receipt” doesn’t work. No documentation means no reimbursement.
Changing the project without approval
You got approved to buy Equipment A, but Equipment B went on sale, so you bought that instead. If you didn’t get written approval for the change, that cost becomes ineligible.
Failing to complete the project
If your company runs into financial trouble and can’t finish the project, you may need to return grant money already received. This depends on the agreement terms.
Not submitting required reports
Every grant has reporting requirements. Skip them and you’ll be ineligible for future funding from that program and possibly from other government programs too.
Rejection is common. It doesn’t mean your business or project is bad.
Request feedback
Most programs provide limited feedback on rejected applications. Call the program office and ask for specific reasons. Was it eligibility? Score too low? Budget issues? Knowing why helps you improve.
Read scoring criteria
Many programs score applications on specific criteria: innovation, economic impact, feasibility, management capability. If your score was low in one area, strengthen that section for your next application.
Reapply with improvements
If the program has another intake period, revise your application based on feedback and submit again. Many successful applicants got rejected the first time.
Try a different program
Your project might fit better elsewhere. An innovation grant program might have rejected you, but a regional development program might approve the same project.
Break your project into smaller pieces
If you asked for $200,000 for a major expansion and got rejected, consider applying for $50,000 for just one component. Smaller projects often have higher approval rates.
Get help
Free advisory services from regional development agencies, business development centers, and industry associations can help you identify weaknesses in your application.
Paid grant writers charge fees (typically $2,000 to $10,000) to prepare professional applications. Some work on contingency, taking a percentage if approved. Weigh the cost against the potential funding.
Not if you follow the program rules. Grants are non-repayable contributions. But if you misuse funds, don’t complete the project, or violate terms in your agreement, repayment can be required.
There’s no universal limit. Some programs cap contributions at $50,000. Others go into the millions. You can apply to multiple programs, but total government funding across all sources usually can’t exceed 75% to 85% of project costs, and you can’t be funded more than 100% overall.
Usually yes, for time you spend on the funded project. But this depends on the program. Some cover owner salaries, some don’t. Your salary rate needs to be reasonable and supported by your financial statements.
You cover the extra cost. Grants typically fund a percentage of costs up to a maximum amount. If you budgeted $100,000 and it actually costs $120,000, the grant still only covers its approved amount. You pay the difference.
The grant pays based on actual costs, not your estimate. If you budgeted $100,000 but only spent $80,000, a grant covering 50% pays you $40,000, not $50,000.
Rarely. Most grants fund growth, expansion, innovation, or market development. Some programs support business succession planning, but these are specific and limited.
Grants typically don’t check personal credit. They assess business financials. If your company is profitable and financially stable, your personal credit usually doesn’t matter. But if you have outstanding tax debts or owe money to other government programs, that can disqualify you.
Government grants are usually taxable as business income. This surprises many people. You receive $50,000, spend it on your project, but that $50,000 counts as revenue on your tax return. Plan for the tax impact. Some grants receive special tax treatment – check with your accountant.
No, but they can help. If your project is straightforward and you write clearly, you can do it yourself. If you’re applying for large amounts, have a complex project, or struggle with written applications, a professional might be worth it.
This varies. Some programs let you apply multiple times as long as you’re doing different projects. Others restrict frequency, like once per year or once per fiscal year. Check specific program rules.
Many federal programs require at least one or two years of operations and financial history. Provincial and regional programs sometimes support newer businesses. Startup-specific programs exist but are fewer in number.
Getting grant funding takes preparation. Here’s what you should do now.
Step one: Build your document library. Start collecting financial statements, business registration documents, and your business plan today. Don’t wait until you find a grant to start gathering this information.
Step two: Review your upcoming projects. What are you planning for the next 12 to 24 months? New equipment? Hiring? Entering new markets? Technology upgrades? List these out. These are potential grant projects.
Step three: Research matches. Use the Canada Business Benefits Finder and your provincial business portal to see which programs match your projects and eligibility.
Step four: Set aside time. Applications take 10 to 40 hours to complete well. Block time in your calendar to work on them. Rushed applications get rejected.
Step five: Connect with advisors. Contact your regional development agency. Book a free consultation. They can tell you which programs fit your situation best and point out programs you might have missed.
Step six: Join a peer group. Other business owners who have applied for grants can provide insights. Your local Chamber of Commerce or industry association often hosts networking groups.
Step seven: Track deadlines. Create a calendar of application intake periods for programs you’re interested in. Set reminders 60 days before deadlines to start preparing.
Grants exist to help businesses grow. The money is real. The approvals happen. But only if you apply. Most business owners never take that step, which means less competition for those who do.
Your biggest advantage is taking action while others hesitate.
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