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
$500,000
Grant
Description:
Promote the development of a common vision of the priorities of an agri-food sector or a territory as well as the coordination of the actors involved in their implementation.
$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.
no fixed amount
Grant, Loan
Description:
CED supports economic development in all Quebec regions by paying particular attention to those grappling with economic difficulties.
That’s why CED has launched a new initiative to offer flexible conditions and targeted support to Quebec’s RCMs with the greatest economic vulnerability.
$75,000
Grant
Description:
This component aims to increase the number of collective actions necessary for the management and promotion of reserved designations and promotional terms.
$1,000,000
Grant, Loan, Subsidy
Description:
The Economic Development Project Support Program – Structuring projects of organizations in support of entrepreneurship development (PAPDE, component 1) aims to promote and support structuring projects of organizations that offer direct services to entrepreneurs.
No fixed amount
Grant
Description:
Provide assistance in the form of coaching, technical advice and financial support to help eligible individuals start a business.
$50,000
Grant, Loan
Description:
Support the implementation of a marketing plan in order to develop or consolidate local marketing and agritourism initiatives.
$25,000
Grant
Description:
The Ministerial Initiative ” Agricultural Succession and Entrepreneurship ” aims to help the next generation of farmers in Quebec start a new business or acquire or take over an existing business by supporting, from a sustainable development perspective, the making of necessary investments:
at the start of its agricultural activities;
to the sustainability of its business by improving profitability or reducing risks.
$250,000.00
Grant
Description:
The Nunavut Business Investment Schedule (NBIS) provides 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 fixed amount
Grant, In-Kind Support
Description:
Start-Up Yard is the incubation facility at COVE (Centre for Ocean Ventures and Entrepreneurship). They help early stage companies commercialize their ocean technologies and succeed in the global marketplace. Start-ups grow stronger, faster with their acceleration programs, incubation space and services, funding, shared equipment, expertise, mentoring and wharf access.
no fixed amount
Grant
Description:
Build Nova Scotia believes in entrepreneurship and innovation. We are proud to support vibrant, healthy, connected communities through the delivery of sustainable strategic infrastructure. Living by the ocean is our greatest natural advantage – it’s where we work and play, where world-class researchers and industry innovate and collaborate.
$100,000.00
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. The fund also provides assistance for small businesses facing viability or wind-down challenges.
$100,000.00
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 fixed amount
Grant
Description:
Build Nova Scotia is seeking several local operators to “Pop-Up” their retail businesses in a modified shipping container for one-week opportunities within Salt Yard on the Halifax waterfront. The Salt Yard business district opened in 2017 and has become one of the most visited areas along the Halifax waterfront. Salt Yard is now home to over 25 small, seasonal businesses and is a popular venue for community events and activations. The intent of these additional pop-up opportunities is to help further this natural growth of Salt Yard by providing new and flexible platforms for small local businesses.
$5,000
Grant
Description:
To encourage the creation and viability of small businesses in Prince Edward Island, Small Business Assistance supports activities that increase productivity and competitiveness. The program supports eligible costs related to internal planning and processes. A new business is eligible for support for marketing and promotion activities.
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
Description:
Self-Employment Assistance is an employment program that provides financial and entrepreneurial assistance to eligible individuals to help them create jobs for themselves by starting a business. The maximum duration of an agreement with a participant is 52 weeks, and 78 weeks for persons with a disability.
$150,000
Grant, Loan, Investment
Description:
These funds aim to stimulate entrepreneurship at the local level.
$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.
$6,000.00
Grant
Description:
Certain provisions of the working conditions allow the various civil service organisations to adopt a ministerial system for the organisation and reduction of working time (ARTT).
Such a system aims to improve the quality of life and motivation of employees and, depending on the circumstances, to generate savings on the payroll which could in particular enable jobs to be saved.
Below we present general information relating to the organisation and reduction of working hours.
To find out the terms of application that apply to you, we invite you to consult the regime specific to your organization.
no fixed amount
Grant
Description:
The Northern Isolated Community Initiatives (NICI) Fund supports current and new food initiatives that strengthen and diversify economic activity in the North. In Quebec, the targeted territory is Nunavik.
no fixed amount
Grant
Description:
The Entrepreneurship and Business Development (EBD) Program is one of two 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.
$33,000
Grant, Subsidy
Description:
Part 1 of the Nordic Incubator-Accelerator offers two tailor-made support courses, adapted to the stages of maturity of companies in order to provide them with the knowledge and tools to maximize their chances of success.
$5,000
Grant
Description:
Mitacs Entrepreneur International offers a travel grant to Canadian start-ups that are housed in an incubator or accelerator linked to an academic institution to connect them with host incubators abroad and explore new business development opportunities in international markets.
$15,000
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.
$40,000
Grant, In-Kind Support
Description:
The London Innovation Challenge aims to accelerate and scale select London-developed solutions. Two winners throughout the challenge will receive a $40,000 investment each, customized business advisory services, and a suite of other benefits from TechAlliance.
$10,000
Grant, In-Kind Support
Description:
We will invest up to $10,000 into your business as well as provide hands-on support, access to mentors, and potential access to investors. With help from us, you will have your new business launched or your current company vaulted into success.
$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.
$40,000
Accelerator, Grant
Description:
Delivered virtually, Invest Nova Scotia Accelerate is a milestone-based program that helps Nova Scotia start-ups get investment-ready. We are focused on five sectors where we can leverage our deep in-house expertise and our network of experts and investors to deliver value to our clients:
1. Agriculture Tech: start-ups addressing the global food production challenges while reducing dependency on fossil fuels or petrochemicals.
2. Clean Tech: start-ups addressing climate change and clean air, water and soil.
3. Health Tech: start-ups developing new therapeutics, medical devices or digital health technologies solving large unmet healthcare needs.
4. Ocean Tech: start-ups developing solutions in ocean health, fisheries and aquaculture, offshore energy, shipborne technologies and marine bioresources.
5. Software: start-ups working on software solutions leveraging artificial intelligence, computer vision, blockchain, or data network effects to solve large unmet market needs.
$200,000.00
Grant
Description:
The Investment – Launch Stream provides a conditional contribution of up to 50% of total eligible project costs to a maximum of $200,000 for businesses starting-up operations in Northern Ontario.
$25,000.00
Grant
Description:
The Edmonton Arts Council’s (EAC) Individuals & Collectives grant has three distinct streams, each with its own evaluation criteria and assessment process. An individual or collective may only apply to one stream at each deadline and may only receive one grant from this program annually from January to December.
No fixed amount
Grant
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:
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.
$250,000.00
Grant
Description:
An original and advantageous formula, this program is a non-refundable financial contribution , offered to local businesses. The interest generated by investments from immigrant investors, managed by Investissement Québec, are allocated to businesses.
$90,000.00
Entrepreneurship Program, Grant
Description:
The Government of Alberta, in collaboration with the University of Alberta, University of Calgary, and University of Lethbridge, developed GreenSTEM to offer a new funding model for high- quality technical talent to pursue entrepreneurship, develop the required business skills and move a deep technology concept towards commercialization.
The program supports a pan-Alberta cohort of technically-skilled GreenSTEM Fellows to transform their technical know-how into a business application and prioritize entrepreneurship over other conventional career paths.
$750,000
Grant
Description:
Facilitate the implementation of food processing business development projects by supporting the provision of external expertise and the acquisition of skills within them.
$500,000
Grant
Description:
Increase the production, profitability and biosecurity of commercial fisheries and aquaculture companies through the development of new products or the implementation of new company-specific processes.
$25,000
Grant, Loan
Description:
Promote the establishment of a first commercial fishing business by fishermen, including the next generation.
$50,000.00
Grant
Description:
The Financière Agricole du Québec’s Financial Support Program for Aspiring Farmers helps young producers establish themselves on an existing farm or start a new business. The program provides grants for young farmers to establish full-time or part-time establishments, pursue agricultural training, as well as funding for land improvement and equipment purchases. The Part-time grant offers financial support between $10,000 and $25,000. The Full-time grant offers financial support between $20,000 and $50,000.
$25,000.00
Grant
Description:
The Equity & Access in the Arts program is one of the ways the Edmonton Arts Council pursues our commitments to increasing support for artists and arts professionals from Indigenous and equity-seeking communities. 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.
$75,000.00
Grant
Description:
This program supports the implementation of entrepreneurial support projects in order to stimulate the development and improve the performance of cultural enterprises, regardless of the stage of development of these enterprises: start-up, diversification, entrepreneurial succession, growth, technological shift, recovery, transfer.
$10,000
Grant
Description:
Start-up funding is available through the Enhancement Fund for:
a) child care centres; and
b) family day homes.
$50,000
Grant
Description:
The Economic Action Plan Grant supports expansion and growth projects of local businesses and business associations that contribute to the implementation of the Economic Action Plan. This will lead to a more resilient, diverse and equitable local economy.
$1,000
Grant
Description:
The Corner Store grant program is targeted to Neighbourhood Commercial properties or properties that meet the commercial needs of local residents.
Initiatives that will improve the capacity, efficiency, productivity and/or competitiveness of the business.
$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.
$5,000.00
Grant
Description:
Aspiring or emerging publishers and other creative entrepreneurs can apply for up to $5,000 in start-up funding to plan, launch or further develop a company that publishes a digital periodical.
$25,000
Grant
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.
In this program, participants share their journeys with each other and learn how to overcome challenges they may experience as they integrate into the business community through a series of expert-led workshops.
$150,000
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.
$120,000,000.00
Grant
Description:
The Alberta Petrochemicals Incentive Program (APIP) is a key part of Alberta’s Recovery Plan and the Natural Gas Vision and Strategy to turn the province into a top global producer of petrochemicals. It financial incentives in the form of grants to encourage private sector investment in new or expanded Alberta-based petrochemical manufacturing facilities, including those producing value-added, petrochemical, hydrogen, fertilizer, and fuel products.
$70,000.00
Grant
Description:
The Project Script Development Grant supports Albertan writers, directors and producers by providing financial assistance towards the creation of quality, marketable and commercial production-ready projects and/or scripts.
No fixed amount
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.
$99,999.00
Grant
Description:
This program promotes entrepreneurship in Indigenous communities and seeks to increase the number of viable Indigenous-owned businesses. The program has 2 components: access to capital and business opportunities.
The Aboriginal Entrepreneurship Program: Access to Capital provides Indigenous businesses with access to non-repayable contributions of up to $99,999 for: supporting eligible business proposals and leveraging additional funds.
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Maurice