Business Subsidies in Canada: Government Support for Hiring, Training, and Innovation
Looking to reduce your business costs through government support? This article explains business subsidies in Canada, including how business subsidies work, what types are available at both the federal and provincial levels, and how you can qualify.
Whether you’re hiring new employees, investing in training, or expanding into new markets, this guide will help you understand and access the subsidy programs available to Canadian businesses.
✅ What Is a Business Subsidy?
A business subsidy is a form of non-repayable government support that helps businesses cover specific operational costs — most commonly related to employment, training, or innovation. Unlike grants, which often fund broader projects, subsidies reimburse businesses for specific expenses after they’ve been incurred. These programs are typically:
- Targeted at job creation, workforce development, or economic recovery
- Conditional on hiring certain groups or achieving certain outcomes
- Paid out as wage reimbursements, cost-sharing arrangements, or incentive payments
Subsidies are available through both federal and provincial governments, often in partnership with local organizations or post-secondary institutions.
✅ Common Types of Business Subsidies in Canada
Subsidy programs vary widely, but most fall into a few clear categories. Below are the most common types of business subsidies available to employers across Canada:
◾ Wage Subsidies
These programs reimburse a portion of employee wages, typically for a defined period. They often target:
- Youth and students (e.g. summer jobs, internships)
- Newcomers or underrepresented groups
- Workers in rural or remote communities
- Businesses affected by economic disruption or transitioning sectors
◾ Training & Skills Development Subsidies
Subsidies that help cover the cost of employee training — whether for onboarding new hires, upskilling existing staff, or meeting sector-specific certification requirements. These may support:
- In-house or third-party training
- Digital skills development
- Technical, trade, or safety certifications
◾ Employment Incentives
Subsidies that reward employers for hiring individuals from targeted groups or participating in employment programs. These may offer:
- Lump-sum payments per hire
- Bonuses for retaining employees past a minimum term
- Support for job placements through public employment services
◾ Innovation or R&D Subsidies
Some subsidies support early-stage R&D, product development, or commercialization. These may take the form of:
- Reimbursement for research staff salaries
- Support for testing, prototyping, or IP development
- Assistance for startups in incubators or accelerators
While some of these resemble grants, many operate as post-activity subsidies, reimbursing businesses for eligible costs.
◾ Export Market Subsidies
Designed to help businesses expand into new international markets, these subsidies may cover:
- Participation in international trade shows or export missions
- Marketing, translation, or product adaptation costs
- Travel and freight associated with export development
These programs are often available through regional development agencies with federal or provincial funding.
✅ Who Offers Business Subsidies in Canada?
Business subsidies are offered by a mix of federal, provincial, and regional agencies. These include:
- Federal departments and agencies, such as Employment and Social Development Canada (ESDC), Innovation, Science and Economic Development Canada (ISED), and regional development agencies like FedDev Ontario, PrairiesCan, and CanNor.
- Provincial and territorial governments, often through ministries responsible for labour, workforce development, or economic growth.
- Delivery partners, such as post-secondary institutions, Indigenous economic development organizations, and sector-specific non-profits, which help administer subsidy programs on behalf of governments.
✅ How to Qualify for a Business Subsidy
Eligibility criteria vary, but most business subsidy programs require that you:
- Operate a registered business in Canada (or a specific province or region)
- Intend to hire, train, or retain employees during the subsidy period
- Meet specific program requirements — such as hiring a person from a target group, creating a new position, or investing in employee development
- Submit documentation such as job descriptions, payroll records, training plans, or proof of payment
- Apply within a defined intake window or program timeline
Some subsidies are first-come, first-served, while others are competitive or ongoing year-round through approved delivery organizations.
✅ How to Apply for a Business Subsidy
Each subsidy program has its own application process, but most follow a similar path:
- Confirm eligibility by reviewing the program guidelines (sector, business size, employee demographics, etc.)
- Prepare documentation, including a job offer or training plan, projected wages, and a clear explanation of how the subsidy will be used
- Apply through the appropriate channel — often a federal or provincial portal, or via a delivery partner such as a local employment centre or educational institution
- Track and report — you’ll usually need to submit proof of payment, track hours worked, or report on outcomes to receive reimbursement
Tip: For student or intern-related subsidies, coordination with a college or university is often required.
✅ Alternatives to Business Subsidies
If your business doesn’t qualify for a subsidy — or if you’re looking to stack funding sources — there are other programs worth exploring:
◾ Grants
Non-repayable funding for broader business initiatives such as hiring, innovation, expansion, or regional development.
◾ Loans
Government-backed loans (federal or provincial) with flexible terms and lower interest rates than private lenders.
◾ Tax Credits
Programs like SR&ED (Scientific Research and Experimental Development), digital media tax credits, and provincial R&D incentives help reduce business tax liabilities.
◾ Equity Investment Programs
Startups and high-growth businesses may access capital through angel investors, venture capital funds, and innovation-focused public-private partnerships.
✅ Business Subsidies in Canada: Current Subsidies Available
In the following sections you’ll find business subsidy programs that are currently offered by the Canadian federal government, as well as various provincial governments:
Federal Government Business Subsidies Currently Available:
Up to 50% of total eligible expenses to a maximum of $25,000 (publishing internships), $30,000 (technology internships) or $50,000 (business planning); up to 75% (max $37,500 / $45,000 / $50,000) for Indigenous, racialized, official language minority or disabled interns or equity-owned publishers; total government assistance cannot exceed 75% of total project expenditures
Grant
Description:
The Business Development sub-component provides assistance to publishers for internship projects and business planning projects:
1. Internships: Publishing and technology internships provide valuable training for new Canadian book industry professionals, who in turn accomplish useful work that the firm might not otherwise have had the resources to carry out.
2. Business planning: Business planning projects help recipients develop strategic approaches to improving their business activities and competitiveness.
No fixed amount
Grant
Description:
The Science and Technology Internship Program (STIP) – Green Jobs provides funding to eligible employers across Canada
to hire, train, and mentor youth (aged 15-30) in the natural resources sector (energy, forestry, mining and critical
minerals, earth sciences, and clean technology) including in STEM fields (science, technology, engineering, and
mathematics). The STIP – Green Jobs has been part of the Government of Canada’s
Youth Employment and Skills Strategy
since 1997.
Subsidy applied against the total cost of an eligible product (including product purchasing cost, transportation, insurance and overhead) shipped to an eligible community; rates vary by type of transportation, location of the community and category of item (high, medium or low levels by air); registered businesses are reimbursed through monthly claims (subsidy budget of $144.8 million for 2024 to 2025)
Subsidy
Description:
Nutrition North Canada (NNC) is a Government of Canada program that helps isolated, northern communities make nutritious food and some essential items more affordable and more accessible.
NNC subsidizes a list of nutritious eligible foods, as well as certain non-food items such as diapers and personal hygiene products, sold by registered retailers, suppliers, country food processors and local food growers.
No fixed amount
Subsidy
Description:
Young talent offer fresh perspectives that can fuel innovation. Our youth employment program provides financial assistance to companies so they can hire young talent to contribute to their innovation needs.
1. The Youth Employment Program offers financial assistance to offset the cost of hiring young talent to work on projects with R&D, engineering, multimedia or market analysis components or to help develop a new product or process.
Not-for-profit organizations: up to 100% of wage costs and mandatory employment-related costs; private sector employers: up to 50% of wage costs and mandatory employment-related costs
Subsidy
Description:
This program provides youth with summer employment opportunities where they can gain work experience and develop important employability skills.
Funding is provided to eligible First Nations and Inuit communities, governments and organizations, as well as not-for-profit associations, private sector employers and schools and employers who then provide activities for First Nations and Inuit secondary and post-secondary students.
Private sector employers: up to 50% of wage costs and mandatory employment-related costs; not-for-profit organizations: up to 100%; all employers: 100% of the wage and Mandatory Employment-Related Costs when a participant with disabilities is hired, plus a maximum contribution of $3,000 per participant with disabilities for special equipment and facilities
Subsidy
Description:
This program helps First Nations and Inuit youth acquire essential employment skills and learn about job and career options.
Funding may be provided to eligible First Nations and Inuit communities, governments and organizations, as well as not-for-profit associations, private sector employers and schools and employers who then provide activities for First Nations and Inuit youth.
Up to $5,000 for every opportunity offered to a student through the program
Subsidy
Description:
The Student Work Placement Program gives post-secondary students across Canada paid work experience related to their field of study.
How the program works
ESDC works with Employer Delivery Partners. Employer Delivery Partners are a group of recognized associations and organizations that represent the interests of employers in industries.
They work with businesses and post-secondary education institutions to:
1. provide wage subsidies to employers that offer quality student work placements, and
2. create partnerships with colleges, universities, polytechnics and CEGEPs to recruit students for these placements
No fixed amount
Subsidy
Description:
Canada Summer Jobs (CSJ) is a program under the Youth Employment and Skills Strategy (YESS). It helps youth aged 15 to 30 gain paid summer work experience and develop skills for the job market.
If approved, your organization can gain valuable wage subsidies that make it easier to hire motivated youth.
Alberta Business Subsidies Currently Available:
Compensation based on the average commercial value for the type and class of animal on the day it was killed; minimum payment of $400 on a confirmed kill of a cow
Subsidy
Description:
The Wildlife Predator Compensation Program provides compensation to ranchers whose livestock are killed or injured by wildlife predators.
Free four-session program for Alberta-based businesses (customized coaching, expert access and help developing an export plan); companies that do not meet the attendance commitment may have to pay the course price of $500
Accelerator, In-Kind Support
Description:
The Trade Accelerator Program (TAP) provides the tools, connections, and knowledge needed to successfully enter and grow in new markets.
TAP is offered by Calgary Economic Development in conjunction with the Government of Alberta. The four-session program is free for Alberta-based businesses and focuses on accelerating your strategic development and grounding you in the export basics.
100% of the value of the animal to a maximum, in the case of a horse, of $2000.00
Subsidy
Description:
The Shot Livestock Compensation Program provides compensation to producers whose livestock is shot by another person in a Wildlife Management Unit in which there is an open recreational season for the hunting of big game or game birds.
No fixed amount
Subsidy
Description:
The Marketplace Development Program will help export-ready operators sell their experiences at Canada’s Travel Trade Marketplaces including Canada’s West Marketplace. The program will help operators prepare for the marketplaces through the development of necessary materials for the show as well as training on how to be successful at the marketplace. The 3-year program will also help subsidize a portion of the cost of attending the marketplace as well as the necessary materials needed (eg. flatsheets, print materials).
No specific amount specified
In-Kind Support
Description:
The Green Buildings Priority Stream is a voluntary program offered by the City of Calgary that assists with the development of new energy-efficient buildings. It provides enhanced coordination and faster reviews for development and building permit applications.
Grant at 50% of demolition costs not to exceed a rate of $15 per square foot of original gross floor area of office space demolished (an additional $5 per square foot may be considered for asbestos abatement and/or hazardous material removal), up to a maximum of $3 million per property unless Council approves a greater amount
Grant
Description:
The program supports downtown property owners to redevelop or remove underused office space and bring in a greater mix of amenities and services that support a thriving and resilient downtown community.
The Downtown Office Demolition Incentive Program, a key component of the Downtown Calgary Development Incentive Program, supports the demolition of office buildings that are unsuitable for office conversions.
No specific amount was identified.
Subsidy
Description:
The Downtown Calgary Development Incentive Program offers funding to downtown property owners to help them convert empty office spaces into residential units, co-living developments, hotels, schools and performing arts centres.
No fixed amount
Insurance, Subsidy
Description:
Agriculture Financial Services (AFSC) brings producers peace of mind through its insurance offerings, which includes annual and perennial crops as well as honey and bee overwintering.
Federal and provincial governments support AgriInsurance programs by paying all administration expenses and sharing premium costs with clients.
Phase 1: up to $4,000 or 50% (whichever is lower) of the costs to develop an EV Charging Road Map; Phase 2: EV Enabled Rebate of 50% of eligible infrastructure costs, up to $6,000 per stall to a maximum of $90,000 per property, plus EV Charger Rebate of 50% of Level 2 charger purchase and installation costs, up to $1,000 per single-port or $2,000 per dual-port station to a maximum of $10,000 per property; combined maximum rebate of $100,000 per property
Grant, Rebate
Description:
ChargeYYC is a new pilot program designed to support residents living in condos, apartments, townhouses, rowhouses, and other multi-residential buildings to install electric vehicle (EV) chargers.
Phase 2 offers up to $100,000 in rebates per property to support EV charging infrastructure.
9-cent-per-litre provincial fuel tax exemption on the purchase of dyed gasoline and diesel; eligible producers are fully exempt from the provincial tax on propane and aviation fuel used for farming purposes
Subsidy
Description:
The Alberta Farm Fuel Benefit (AFFB) Program allows eligible producers to receive a 9-cent-per-litre provincial fuel tax exemption on the purchase of dyed gasoline and diesel.
B.C. Business Subsidies Currently Available:
Up to $25,000 per food producer: wage subsidy of up to 75% of an employee’s hourly wage, to a maximum of $17.00 per hour (maximum total wage subsidy $21,000); short-term occupational skills training up to 100% of eligible costs, to a maximum of $4,000
Subsidy
Description:
The Food Producer Wage Subsidy and Training Support program provides support to primary food producers in the Basin. The program will provide flexibility for eligible producers to hire and/or train employees as needed throughout the 2026 growing and harvesting season.
$3 per hour wage subsidy per eligible ECE plus 19.56 per cent mandatory employment related costs (total $3.59/hour), up to a maximum of 40 hours/week for full-time employees, for up to 12 months in the calendar year
Subsidy
Description:
This Early Childhood Educator Wage Subsidy Program helps strengthen the Early Childhood Educator (ECE) workforce by providing a $3 per hour wage subsidy to enhance the wages of eligible ECEs employed by licensed child care facilities in the Columbia Basin Trust region.
Newfoundland and Labrador Business Subsidies Currently Available:
25% subsidy of eligible costs, up to a total for one event of $2500.00, once per year for one business or organizational representative (maximum from all levels of government not to exceed 75%)
Subsidy
Description:
This program is designed to assist tourism stakeholders in enhancing the quality and market readiness of their tourism services, businesses and products.
no fixed amount
Subsidy
Description:
The Summer Employment Program for Students (SEPS) provides funding to assist private sector businesses and not‐for‐profit organizations create summer employment for students (post-secondary or high school). Through this program, students benefit by gaining valuable work experience that will facilitate future labour market participation.
JobsNL-42: wage subsidy for 28 weeks within a 42-week employment period (first 14 weeks 60% up to $12/hour, second 14 weeks no subsidy, third 14 weeks 80% up to $12/hour); JobsNL-28: 60% subsidy, up to $12/hour, for 10-28 weeks of seasonal/short-term employment
Subsidy
Description:
The JobsNL Wage Subsidy program helps connect employers with employees by providing funding to create long-term or seasonal/short-term jobs. It offsets salary costs to help create new positions, especially for individuals who lack work experience and skills.
75 per cent wage subsidy up to $15 per hour toward the hourly wage for 10 to 28 weeks, plus a training allowance for up to $3,000 per employee hired
Subsidy
Description:
The Employment Enhancement program supports employers in the forestry, aquaculture, agriculture, and fishing sectors, who are engaged in value-added secondary processing, by providing funding to create long-term or seasonal jobs and offering a training allowance for new employees.
Wage subsidy of 75%, to a maximum of $14.00 an hour, for all apprentices funded under the program, paid directly to employers
Subsidy
Description:
The Apprenticeship Wage Subsidy (AWS) program assists apprentices in gaining work experience in a skilled trade, and progress to journeyperson certification by providing a wage subsidy to employers. The AWS program provides a wage subsidy of 75%, to a maximum of $14.00 an hour, for all apprentices funded under the program.
Nova Scotia Business Subsidies Currently Available:
no fixed amount
Subsidy
Description:
The Sync Nova Scotia Program will encourage films and TV productions shot in Nova Scotia to license the music of Nova Scotian artists for their productions by providing a 25% subsidy toward the licensing fees paid by production companies for songs by Nova Scotian artists.
Wage incentive plus training, equipment and other costs of a new hire, assessed by ENS on a case-by-case basis, to a maximum of $25,000 per hire
Subsidy
Description:
The START Program helps connect employers with unemployed Nova Scotians who can fill their job vacancies. For employers, START offers a wage incentive and other types of funding if they hire an unemployed Nova Scotian.
30% of the first year’s salary and 15% of the second year’s salary, plus an additional 10% subsidy in the first year for a graduate from an equity-deserving group. The subsidy is calculated on salary up to a maximum of $70,000 a year for GTO Innovate. From the sixth graduate onward the rate drops to 15% of the first year’s salary and 5% of the second year’s salary.
Subsidy
Description:
The Graduate to Opportunity (GTO) program helps build a stronger workforce and retain young people in Nova Scotia. The program provides a salary incentive that makes it easier to hire recent graduates.
GTO Innovate is for Nova Scotia businesses looking to hire a recent masters or PhD grad for an innovation-focused job that pays at least $60,000 a year.
25% of the first year’s salary and 12.5% of the second year’s salary, plus an additional 10% subsidy in the first year for a recent graduate from an equity-deserving group; subsidy calculated on the actual salary up to a maximum of $60,000 a year for GTO Grow (sixth and later graduates: 15% of the first year’s salary and 5% of the second year’s salary)
Subsidy
Description:
The Graduate to Opportunity (GTO) program helps build a stronger workforce and retain young people in Nova Scotia. The program provides a salary incentive that makes it easier to hire recent graduates.
GTO Grow is for Nova Scotia employers looking to hire a recent graduate into a new, permanent, full-time position that pays at least $37,500 a year.
Subsidy of $8 an hour for the wages you pay the student, reimbursing up to 640 hours, plus a diversity bonus of $1.50 per hour; IRAP or SR&ED recipients may receive 50% of the hourly wage up to a maximum subsidy of $10 an hour
Subsidy
Description:
The Co-op Education Incentive (CEI) provides wage assistance to organizations that offer career-related work experiences for university and college co-operative students.
Nunavut Business Subsidies Currently Available:
No fixed amount
Subsidy
Description:
The Commercial Fisheries Freight Subsidy Policy (Policy) provides financial support to eligible commercial fishing businesses in Nunavut to offset the freight costs required to move their product to market and for air charters for fly-in fisheries.
Cost differential for power consumption between Iqaluit rates and other Nunavut communities paid, with subsidized rates calculated at 50 percent of the Iqaluit base rate, for up to the first 1000 kilowatt-hours of monthly power consumption
Subsidy
Description:
In support of the development of northern business and the encouragement of private home ownership, the Government of Nunavut will provide for equitable power rates by providing small commercial enterprises and private residential power consumers with equitable rates for power consumption.
PEI Business Subsidies Currently Available:
Weekly living allowance or EI benefits, or a combination of the two, during the first year in business; may also be eligible for a $1,000 consulting grant
Subsidy, Grant
Description:
Self Employ PEI is an employment program developed to help job seekers who want to launch their own business. This program provides financial support and business counselling to new entrepreneurs during their first year of operation.
Maximum one-year rental subsidy up to $6.00 per square foot (excluding common area costs) on 500 up to a maximum of 10,000 square feet, payable monthly; combined non-repayable government funding cannot exceed 75 per cent of eligible costs
Subsidy
Description:
Rental Incentive Assistance contributes to rental costs for Prince Edward Island businesses to establish a new business or to expand existing production capabilities.
Funding for full-time positions: 50% of the provincial minimum wage plus 4% vacation pay for up to 40 hours per week (Private Sector); 100% of the provincial minimum wage plus 4% vacation pay for up to 40 hours per week (Non-Profit and Public Sector)
Subsidy
Description:
PEI employers who hire students during summer may qualify for the employee wage subsidy offered through two separate student employment programs:
Supports full-time post-secondary students working a minimum of 12 to a maximum of 18 weeks during the summer.
Private Sector: 50% of the provincial minimum wage plus 4% vacation pay for up to 40 hours per week for full-time positions (Non-Profit and Public Sector: 100% of the provincial minimum wage plus 4% vacation pay for up to 40 hours per week)
Subsidy
Description:
This program supports students aged 15-29 working 8-12 weeks during summer and students must be returning to school in the Fall.
no fixed amount
Subsidy
Description:
The Graduate Mentorship Program is an employment program developed to help employers create long term employment opportunities for unemployed recent post-secondary graduates in their field of study.
Wage subsidy of up to 50% of the new employee’s wages, to a maximum contribution of $12.50 per hour, for a maximum of 20 weeks
Subsidy
Description:
Employ PEI is an employment program developed to help employers create long term employment opportunities for job seekers. An employer receives a temporary wage subsidy to provide on-the-job training for a new full-time employee. If you are hiring a new employee who lacks the work experience necessary for the position, we can subsidize up to 50% of the wages to a maximum of 20 weeks.
Quebec Business Subsidies Currently Available:
Yukon Business Subsidies Currently Available:
$8.25 per hour to a maximum of 600 hours between May 1 and September 1
Subsidy
Description:
This program is for hiring a Yukon youth or student in secondary or post-secondary school.
$7.20 per hour for 450 to 600 hours of employment
Subsidy
Description:
The Student Training and Employment Program (STEP) offers wage subsidies to hire post-secondary students for summer jobs. The subsidy is $7.20 per hour for 450 to 600 hours of employment.
No fixed amount
Subsidy
Description:
Staffing UP provides funding for projects that help organizations find, hire and keep workers.
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