Startup Business Grants in Canada: Current Grants + Tips for Applying
Business grants are an essential funding source for Canadian startups, providing critical financial support during the early stages of growth. These non-repayable funds help entrepreneurs develop innovative ideas, expand operations, and create economic opportunities. By targeting specific business activities, demographics, industries, and regions, grants are designed to align with national and local economic goals while fostering inclusivity and innovation.
Key Takeaways
- Business grants are non-repayable funds designed to support startups and stimulate growth.
- Funding is provided by federal, provincial, and non-profit organizations to align with their goals.
- Eligibility is often based on business stage, industry, location, and adherence to program criteria.
- Grants commonly support R&D, hiring, expansion, marketing, and technology adoption.
- Alternatives to grants include loans, equity investments, and incubator programs for startups.
What is a Business Grant?
A business grant is financial support offered by governments or non-profit organizations to promote business growth, innovation, and economic development. Unlike loans, grants do not require repayment, making them a valuable funding option for startups.
Grants in Canada are structured to focus on specific needs:
- Activity grants: Provide funding for tasks like R&D, marketing, expansion, or hiring, enabling businesses to achieve specific operational goals.
- Audience grants: Target particular groups, such as women entrepreneurs, youth, or startups, to foster inclusivity and support underrepresented groups.
- Industry grants: Focus on sectors like technology, agriculture, and clean energy, often aligning with economic and policy priorities.
- Regional grants: Aim to boost local economies by supporting businesses in specific provinces, territories, or underserved areas.
Grants vs Loans for Startups in Canada
Business grants and loans are both important sources of funding, each offering unique benefits and challenges. Grants provide financial support without the need for repayment, which is advantageous for startups needing to conserve cash flow. However, grants are competitive and often come with restrictions on their use.
Loans, on the other hand, offer more flexibility in terms of funding amounts and usage but must be repaid with interest. This can put pressure on a startup’s finances, particularly during the early stages.
Comparison: Startup Grants vs Startup Loans
| Business Grants | Business Loans |
|---|---|
| Repayment? No | Yes, with interest |
| Financial Risk Low | High |
| Good credit and a solid business plan needed | Good credit and a solid business plan are needed |
| Application Competitive and rigorous | Dependent on financial institution |
Choosing between a grant and a loan depends on your startup’s goals, financial needs, and eligibility. Grants are ideal for startups aiming to fund specific activities without financial risks, while loans are better suited for businesses that need larger, more flexible funding options.
Types of Startup Grants in Canada
Business grants in Canada fall into three main categories: federal, provincial, and non-profit. Each type serves specific purposes and aligns with the goals of the granting organization.
Federal Government Grants for Startups
Federal government grants are designed to promote national economic growth and innovation. These grants often target broad initiatives such as technology advancement, export development, and job creation. The federal government provides grants to encourage startups to engage in research and development (R&D), adopt new technologies, or enter international markets. Federal grants aim to align with national priorities, ensuring that funded projects contribute to the overall economic and social well-being of the country.
Provincial Government Grants for Startups
Provincial government grants are tailored to meet the unique economic and development needs of individual provinces. These grants focus on fostering growth in priority industries, supporting small businesses, and enhancing regional economies. Provincial grants often provide funding for activities such as hiring, training, equipment purchases, and expansion projects. By addressing local challenges and opportunities, provincial grants help startups thrive within their specific regions while contributing to provincial economic goals.
Non-Profit Grants for Startups
Non-profit organizations offer grants to support entrepreneurs in specific industries or demographics. These grants are typically aimed at fostering entrepreneurship, promoting diversity, and addressing social or economic inequalities. Non-profit grants often focus on activities such as capacity building, mentorship, and community development. Startups that align with the mission of a non-profit organization can benefit from financial support and additional resources to establish and grow their businesses.
Eligibility Criteria for Startup Grants
Eligibility criteria for startup grants vary significantly but generally include these key factors:
1. Business Stage
2. Industry Relevance
3. Geographic Location
4. Alignment with Grant Objectives
5. Legal and Financial Compliance
Applying for Startup Grants in Canada: Top 5 Tips
1. Research Extensively:
2. Develop a Strong Proposal:
3. Provide Accurate Documentation:
4. Highlight Broader Impact:
5. Leverage Expert Support:
Alternatives to Startup Grants in Canada
Business Loans & Credit For Startup Entrepreneurs
Loans provide startups with the flexibility to finance a wide range of activities, including operations, equipment purchases, and expansions. Government-backed loans, like those under the Canada Small Business Financing Program, are particularly appealing for their favorable terms, such as lower interest rates and flexible repayment schedules.
These loans can be essential for startups needing immediate capital and are often used for scaling production, purchasing technology, or covering initial operating costs.
Startup Programs For Startup Entrepreneurs
Startup programs, including incubators and accelerators, provide comprehensive support that combines funding, mentorship, and access to valuable networks. These programs are particularly beneficial for early-stage entrepreneurs who need guidance in refining their business strategies.
Incubators typically provide a collaborative workspace and resources for a longer duration, while accelerators focus on fast-tracking growth within a set timeframe. Participation in these programs can also provide opportunities to connect with potential investors and industry leaders.
Equity Investment Programs For Startup Entrepreneurs
Equity financing through angel investors or venture capital firms is a viable alternative for startups with scalable and high-growth potential. These programs not only offer substantial funding but also grant startups access to mentorship, industry expertise, and strategic connections.
Equity investment programs often involve giving up a portion of ownership in exchange for funding, so startups should carefully evaluate terms and ensure alignment with long-term business goals. Securing equity investment can also enhance credibility and attract additional funding opportunities.
Startup Grants in Canada – Current Grants Available
In the sections below you’ll find a sample of the federal and provincial grants currently available for startup businesses:
$3,000
Grant
Description:
Summer Company is an amazing opportunity for young entrepreneurs to run their own business over Summer. Participants can expect to receive:
start-up money to kick-off a new summer business
advice and mentorship from local business leaders to help get the business up and running
Learning how to run your own student business is one of the best summer jobs you can have. You get to be your own boss while learning what it takes to manage a business. You’ll develop skills in areas such as sales, marketing, bookkeeping, customer relationship management, networking and more
$20,000
Grant, In-Kind Support
Description:
As TechAlliance takes bold steps towards equitable growth, we continue to unlock opportunities for some of Canada’s most promising startups and fastest-growing innovation companies with the i.d.e.a. Fund™ to foster a vibrant, inclusive and green ecosystem.
In Cohort 3, we will distribute up to a maximum of $20,000 in matching seed funding and up to 30 hours of expertise from our Venture Growth team to select innovative businesses in various sectors.
Minimum contribution of $50,000 and maximum of $250,000, alongside arm’s-length debt or equity financing
Grant
Description:
To provide contributions to Nunavut business ventures with anticipated economic development outcomes. These contributions are structured to complement and attract Debt Financing and/or Equity Investments.
No specific amount specified
In-Kind Support
Description:
Our Small Commercial Marine Business Program:
1. Allows marine businesses the opportunity to use Build Nova Scotia infrastructure in a manner that compliments traditional business development processes.
To support this initiative, Build Nova Scotia offers the Blue Line Accreditation Program. Successful applicants are granted access to designated shared areas within Build Nova Scotia owned and/or operated marine infrastructure throughout Halifax Harbour.
Accountable contributions, not to exceed $100,000 per recipient
Grant
Description:
The Small Business Opportunities Fund supports new and expanding small businesses managed by capable entrepreneurs who have identified promising business opportunities. The fund provides accountable contributions to offset costs associated with a wide range of planning, start-up, expansion, and marketing activities.
Up to $100,000 per recipient; business aftercare programs delivered by Nunavut organizations: up to 80% of the additional program delivery cost; businesses buying aftercare services: up to 70% of eligible costs
Grant
Description:
The Entrepreneur Development Fund supports the acquisition of foundational entrepreneurship and business skills by Nunavut residents and businesses by improving the availability of on-going assistance to small business operators. The fund will also help to build the capacity of Nunavut organizations and business service- providers to deliver services and training in the areas of entrepreneurship capacity, business aftercare or tourism safety and risk management.
No specific amount specified
In-Kind Support
Description:
Build Nova Scotia is seeking several local operators to “Pop-Up” their retail businesses in one of two modified shipping containers for one-week opportunities within Salt Yard on the Halifax waterfront.
Up to 50 per cent of eligible costs, to a maximum contribution of $5,000 in the first year of business only (marketing and promotions up to $2,500 plus professional fees up to $2,500), and to a maximum contribution of $2,500 for professional fees support in any other year
Grant
Description:
The Small Business Assistance Program helps small businesses in Prince Edward Island improve productivity and competitiveness. It supports eligible costs related to accessing expert advice for strategic planning and improving operations. New businesses can also get support for marketing and promotional costs in their first year of operations.
no fixed amount
Grant, In-Kind Support
Description:
The Workforce Expansion Self-Employment Benefit Program provides various types of support during the initial development phase of the business including financial assistance, coaching and ongoing technical advice to unemployed individuals to create a job for themselves by starting a new business.
No fixed amount
Grant, Entrepreneurship Program
Description:
Self-Employment Assistance is here to help you start your own business by providing financial and entrepreneurial support.
$3,000.00
Grant
Description:
The Summer Company program provides students aged 15 to 29 start-up money to kick-off a new summer business and advice and mentorship from local business leaders to help get the business up and running.
Applicants must start their business from May to July and end it on Labour Day or they can choose to keep running their summer business while in school.
$5,000.00
Grant
Description:
Starter Company Plus provides a grant of up to $5,000 to start a new company, expand an existing company or buy a business in Ontario. Applicants can also apply for training and mentoring.
No fixed amount
Grant
Description:
Entrepreneurship and Business Development (EBD) is one of three program contribution streams of the Northern Indigenous Economic Opportunities Program (NIEOP). EBD assists Indigenous entrepreneurs and Indigenous businesses through project-based support for activities that help facilitate the establishment or growth of Indigenous businesses.
$15,000 per internship unit (4 to 6 months), half from the partner organization and half from Mitacs; $20,000 units for postdoctoral fellows
Grant
Description:
Mitacs Accelerate Entrepreneur provides early-stage support to postdoctoral fellows (PDF) and graduate student entrepreneurs. Accelerate Entrepreneur funds student entrepreneurs to further develop the research or technology at the core of their business when hosted by an incubator facility. This helps student entrepreneurs to take real, meaningful advantage of the supports provided by the incubator, with the goal of commercializing the technology, product, or service rapidly. In a nutshell, they get paid to grow their company and get to market faster.
Funding ranging from $20,000 – $40,000 per recipient, plus custom business advisory services through TechAlliance growth coaches and a suite of other benefits
Competition, Grant, In-Kind Support
Description:
A City of London-funded London Community Recovery Network project, TechAlliance launched the London Innovation Challenge in 2020 to accelerate and scale select London-developed solutions to address the recovery in areas of focus identified by the London community – Investing in People, Driving Prosperity and Fostering Community.
The London Innovation Challenge encouraged London innovators to develop a sustainable technology solution to address challenges facing our community.
$3,000
Grant
Description:
The program teach youth the practical skills for starting up a successful business during the summer break. We then coach and fund them to run it.
$5,000
Grant, In-Kind Support
Description:
The Starter Company Plus program offers free training and mentorship to support early-stage, non-tech, Ottawa-based businesses.
$40,000
Grant
Description:
Invest Nova Scotia, the Nova Scotia Innovation Hub and Bioenterprise Canada Corporation have partnered to create GreenShoots, supporting early stage companies in the agriculture, agri-food, bioeconomy, clean technology, and related sectors. The goal of GreenShoots is to find and support high potential, early stage knowledge-based Nova Scotia companies, and encourage entrepreneurial activity in the province. The support is intended to help improve the export potential of companies, projected impacts on climate change, job creation, and generation of economic impact in rural areas.
$30,000 (Growth Stream) or $40,000 (Development Stream) in non-dilutive, non-repayable funding disbursed on an expense claim basis, up to $15,000 of which can be allocated to founder salaries
Accelerator, Grant
Description:
The Accelerate program helps Nova Scotia’s early-stage technology start-ups move faster on their path to market.
Accelerate offers two distinct streams based on a company’s path to market.
Conditional contribution of up to 50% of total eligible project costs to a maximum of $200,000
Grant
Description:
Invest North Launch The Invest North Program is designed to boost economic growth in Northern Ontario by encouraging businesses to invest in transformative, strategic and complementary business development opportunities in Northern Ontario communities. The program will support productivity, innovation, business competitiveness, revenue growth, export capacity development, job creation and retention. The Launch program is designed specifically to assist with the launch of new businesses in Northern Ontario.
Grants up to $25,000 based on the anticipated costs of the project, including artist subsistence (individual or collective projects)
Grant
Description:
Stream 3 supports artistic projects ready for implementation, production and/or presentation. This can include support for creation, subsistence, travel and/or mentorship. Projects may be individual or collective, and grants will be available up to $25,000 based on projected expenses, including artist subsistence.
No fixed amount
Grant, Loan
Description:
The Indigenous Economic Development Fund (IEDF) provides grants and financing to Indigenous entrepreneurs, businesses, communities and organizations. The fund helps promote economic development and improve employment opportunities for Indigenous people.
No fixed amount
Grant
Description:
Indigenous Agriculture Development Program Program Overview Funds are available under the Sustainable Canadian Agricultural Partnership to support First Nations communities, indigenous individuals or organizations who are interested in participating the New Brunswick agricultural industry, including local foods. Funding also supports the development of new and existing markets by providing financial assistance to Indigenous applications with viable agriculture projects.
Annual fellowship stipends ($60,000 including benefits for an individual or $90,000 for teams of 2) and up to $71,000 in annual seed funding to cover technology and business development expenses
Grant, Entrepreneurship Program, In-Kind Support
Description:
GreenSTEM is an entrepreneurial pilot program for Science, Technology, Engineering, and Math (STEM) Masters and Ph.D. graduates. The pilot program enables entrepreneurship and provides a two-year commercialization runway for “deep technology” companies involved in science-based innovation that:
1. is expensive
2. has a lengthy development process
3. is more challenging to commercialize than conventional goods or software
Up to $25,000 based on the anticipated costs of the project, including artist subsistence
Grant
Description:
The purpose of the program is to invest in a thriving and diverse arts community in Edmonton by supporting Edmonton based artists and collectives from communities that face barriers to access.
Stream 3 supports artistic projects ready for implementation, production and/or presentation.
Child care centres in Whitehorse: a maximum of $10,000 for requirements related to health and safety (communities may apply for more than $10,000 depending on community needs); family day homes: a maximum of $1,000 (more than $1,000 in communities depending on community needs)
Grant
Description:
Start-up funding is available through the Enhancement Fund for:
child care centres; and
family day homes.
Exterior: up to 50% of eligible construction costs, maximum $20,000 to $90,000 per building based on storefront linear footage, and a maximum of $120,000 per commercial site; Interior: up to 50% of eligible construction costs, maximum $20,000 per contiguous commercial site
Grant
Description:
The Corner Store Grant program provides matching reimbursement for exterior and interior renovations to property owners in Neighbourhood Commercial Areas.
$3,000
Grant
Description:
The Summer Company program (opens in new window) supports eligible young student entrepreneurs, aged 15 to 29, looking to launch and operate a small business during the summer.
no fixed amount
Grant
Description:
The Innovative Solutions Canada is a program for Canadian innovators who want to go into business, grow their companies and bring their innovations to market. It provides funding for research and development and allows prototypes to be tested in an operational setting.
No specific amount specified
Entrepreneurship Program
Description:
The Business Immigrant Essentials program (BIE) is designed to give newcomers the confidence to navigate starting a business in Canada and provide the business skills needed to launch, grow, and accelerate the time to market, all while building their network and fostering connections with others with shared experiences.
Up to $150,000 (total financial aid to any business at any time)
Grant
Description:
Beaver River assists small town and rural businesses in the Northwest of Saskatchewan start, expand and grow
The Beaver River Community Futures Corporation was established in 1988, and the Beaver River Business Development Corporation in 1989. In 1994, these two corporations merged into what is now the Beaver River Community Futures Development Corporation (BRCFDC). Today, we serve 46 communities in northwest Saskatchewan, in an area covering 120,000 square kilometres.
Our core funding, investment capital and special funds are provided by the Federal Government through Western Economic Diversification Canada. This support is part of the Government of Canada’s commitment to Community Futures Development Corporations in Saskatchewan.
Grants worth 12% of a project’s eligible capital costs
Grant
Description:
The Alberta Petrochemicals Incentive Program (APIP) is a key part of the Natural Gas Vision and Strategy to turn the province into a top global producer of petrochemicals. It provides grants to companies to attract investment in new or expanded market-driven petrochemical facilities.
Up to $55,000 per project (or a total of $70,000 per parent company with multiple projects) per fiscal year: Pre-development $15,000 | First draft $25,000 | Final draft $15,000
Grant
Description:
The Project Script Development Grant provides Alberta writers, directors and producers with funding to help cover expenses related to the development of professional quality, commercial-ready projects and scripts that are at least 30 minutes in broadcast length.
This grant, under the Alberta Media Fund, supports the growth, sustainability, competitiveness and business attraction of Alberta’s screen-based production industry.
70% of eligible costs, up to a maximum of $100,000 in funding for a project (up to 85% of eligible costs, maximum $100,000, with demonstrated financial need); only projects with a minimum of $25,000 in eligible costs will be considered
Grant
Description:
The Agricultural Workforce Equity and Diversity Initiative (the Initiative) provides funding to organizations to support underrepresented groups in starting or growing their own business in the agri-food sector.
Individual Indigenous entrepreneurs may receive up to $99,999 in funding assistance and eligible Indigenous community businesses may receive up to $250,000 (non-repayable equity contribution; amount depends on the proposal’s scope, demonstrated need and estimated budget)
Grant
Description:
The Aboriginal Entrepreneurship Program – Access to Capital stream provides annual, ongoing funding to Indigenous entrepreneurs through the network of Indigenous Financial Institutions (IFIs) and Métis Capital Corporations (MCCs). The AEP provides support to Indigenous small and medium-sized businesses with a non-repayable equity contribution and businesses services to start, expand or acquire a business.
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Maurice
