Canada Small Business Grants: Complete Guide to Grants & Resources
If you’ve been struggling to understand small business grants in Canada, this is the only guide you need!
Because in this comprehensive guide we cover the business grant questions that we most commonly hear at Canada Business Grants.
We have the largest, most comprehensive database of Canadian business grants (as well as 52 other types of financial incentives for Canadian businesses), and our research team has a combined thousands of hours of experience in the field. So you’re in good hands!
What is a Business Grant?
Simply put, a business grant is a financial award that has these characteristics:
The Government of Canada distinguishes between grants and contributions. Here’s the difference:
Another big difference: whereas contributions can be repayable or non-repayable, grants are non-repayable.
How Business Grants Work in Canada
Grants are given to businesses to achieve a specific purpose. In other words, granting organizations have a goal in mind when they set up a grant program.
In analysing the grant programs in our database, we discovered that the majority of programs have one (or more) of the following broad goals:
We call this the AAIR Framework (for Activities, Audiences, Industries, and Regions), and it’s an excellent way of quickly remembering what funders provide grants for.
What Kind of Grants are Available for Businesses in Canada?
As mentioned in the previous section, business grants in Canada tend to be given for specific business activities, to specific audiences or industries, and to businesses in certain regions.
Grant Tip
While some grant programs target specific business activities, audiences, industries, or regions, there are also grants that are open to business owners in any industry and region. Examples include some hiring and training grant programs, which are among the easiest programs to qualify for.
In the following sections, we cover the most common business activities, audiences, industries, and regions that receive business grants.
Activity Grants
Grant organizations tend to favour certain uses of grant money. More grant programs are available for the following business activities:
Grant organizations provide funding to businesses that are looking to hire new employees, particularly students and recent graduates, because young workers often have a harder time finding employment due to their lack of experience. Additionally, hiring students and recent graduates can help businesses diversify their workforce and bring new perspectives and ideas to the table. Hiring grants can cover up to 80% of a new employee’s wages for a specific amount of time.
Providing grants for employee training can benefit both the employer and the employee. The employer can improve the skills and productivity of their workforce, while the employee can gain new skills and improve their job prospects. Training grants typically cover 50% – 75% of training costs, but some grant programs cover a full 100% of training costs.
Innovation is critical for businesses looking to stay competitive and adapt to changing market conditions. Research and development grants can help businesses invest in new technologies, processes, and products that can help them grow and succeed in the long term.
Canada is a trading nation, and many Canadian businesses rely on exports to grow and succeed. Export development grants can help businesses expand their reach and tap into new markets, which can lead to increased revenue and job growth.
By supporting businesses in integrating new technologies, grants help improve operational efficiency, reduce costs, and open new markets. This support is crucial for staying competitive in the rapidly evolving digital economy and fostering a culture of continuous improvement and advancement in various sectors..
Energy efficiency is becoming an increasingly important issue for businesses, both from a financial and environmental standpoint. Grants for energy efficiency upgrades can help businesses reduce their energy costs, improve their environmental footprint, and stay competitive in a changing marketplace.
Access to advanced equipment helps companies stay competitive, meet industry standards, and expand their capabilities. Grant support is particularly crucial for small and medium-sized enterprises that might struggle with the high upfront costs of equipment, thereby fostering economic growth and innovation across various sectors.
Registering a Business: Canada
While some grants can be used for any business purpose, many support specific business activities. Here are the most popular (click to go to the guide):
Audience Grants
Funders sometimes have grant programs that target specific demographic groups, i.e. audiences. These grant programs focus on groups that have been historically underrepresented among business owners in Canada, or operate businesses in industries that are considered integral to the Canadian economy, such as the following:
Agriculture is a significant industry in Canada, and farmers face a range of challenges, including rising costs, unpredictable weather, and changing market conditions. Providing grants to farmers can help to support their businesses and promote sustainable farming practices that benefit both the environment and the economy.
Governments in Canada recognize the historical disadvantage experienced by Indigenous people in the country. Providing business grants to Indigenous entrepreneurs is a way of addressing this disadvantage and promoting economic development within Indigenous communities. It can also help to address some of the systemic barriers faced by Indigenous entrepreneurs when accessing traditional forms of business funding.
Supporting women-led businesses helps to bridge the gender gap in entrepreneurship, stimulate innovation, and contribute to economic resilience. These grants aim to address the unique challenges faced by women entrepreneurs, such as access to capital, networking opportunities, and mentorship, thereby empowering them to succeed and drive economic development across various industries..
Artists play a crucial role in Canada’s cultural landscape and often face significant financial barriers in pursuing their craft. Grants for artists can help to provide them with the financial resources needed to create and promote their work, and to support the overall development of the arts sector in Canada.
Like young entrepreneurs, student entrepreneurs face unique challenges in starting a business, including balancing their studies with their entrepreneurial pursuits. Grants for student entrepreneurs can provide them with financial resources and support to help them develop their businesses while still pursuing their education.
Starting a business is challenging, and it can be even more challenging for young entrepreneurs who may have limited access to capital and business networks. Grants for young entrepreneurs can provide them with the support they need to develop their businesses and become successful entrepreneurs.
Directory of Grant Guides by Audience
We have complete guides to business grants for many demographic groups in Canada. To read a guide, click on a link below:
Industry Grants
While there are grant programs that are eligible to businesses in all industries, some funding organizations focus their programs on specific industries (this is particularly the case with government business grants).
These are the industries that tend to have targeted grant programs:
Agriculture and farming are important sectors in Canada, and funding organizations provide grants to support the growth and sustainability of these industries. Grants are often used to fund research and development, improve infrastructure, and promote environmentally sustainable practices.
Funders recognize the value of arts, media, and entertainment in promoting culture and diversity, and in creating jobs and economic growth. Grants are often used to support artists, cultural organizations, and festivals, and to promote Canadian content and talent.
Funders target grants to the construction and real estate industry because it is vital for economic growth, job creation, and infrastructure development. This sector builds and maintains essential infrastructure and supports housing availability and affordability. Grants often promote sustainable building practices, energy efficiency, and innovative technologies, contributing to environmental goals and economic resilience.
Manufacturing is a large part of the Canadian economy, and both the federal and provincial governments provide grants to support innovation, productivity, and competitiveness. Grants are often used to fund research and development, upgrade equipment and facilities, and promote exports.
Funding organizations recognize the importance of technology in driving innovation and economic growth. Grants are often used to support research and development, commercialization of new technologies, and to promote entrepreneurship and start-ups.
Tourism stimulates local economies, especially in rural and remote areas, by attracting visitors and spending. Grants often aim to enhance infrastructure, promote sustainable practices, and market destinations to boost competitiveness. This support helps diversify the economy and preserve cultural heritage and natural landscapes.
Directory of Grant Guides by Industry
Some business grant programs support specific industries. Here are the most popular:
Regional Grants
While some grant programs are Canada-wide (notably grants provided by the federal government), there are many grant programs provided by provincial governments that target either a province or a region of a province. (One example of a region that gets a significant amount of grant funding is Northern Ontario.)
Directory of Grant Guides by Province / Territory & City
Provincial Grant Guides
Municipal Grant Guides
Major Business Grant Programs
There are some large federal grant programs that have been around for years and have provided funding to many Canadian businesses. These programs tend to have broad eligibility requirements and are therefore open to most entrepreneurs.
In addition to grant programs, there are other types of funding programs that offer attractive incentives to business owners.
Here are some major federal grant, tax credit, and government-guaranteed loan programs available to businesses across Canada, as well as some major funders:
Who is Eligible for Small Business Grants in Canada?
Because there are literally hundreds of business grants available in Canada, most Canadian business owners are eligible for at least a few grant programs.
But many grant programs have a common set of criteria that applicants must meet. If you can align your business with these common criteria, you’ll be eligible for more free money!
Common Eligibility Criteria for Business Grants
- Be Incorporated. While there are grants available for sole proprietors, many grant programs require that a business be incorporated.
- Be Registered. If you are not incorporated (i.e. you operate as a sole proprietorship or partnership), you should be registered in the province your business is headquartered in.
- Be Operating for a Minimum of One Year. Many grant programs require that a business be operational (i.e., earning revenue) for at least twelve months, with some programs requiring twenty-four months of continuous operation.
- Have Established Revenue. A history of revenue signals to grant organizations that a business is established (and therefore less risky), so many grant programs require that a business already be earning income.
- Have Employees. Grant programs that provide large grants tend to have minimum employee criteria (but this not the case with many smaller grants).
Where Can I Get a Business Grant in Canada? Major Sources of Funding
There are hundreds of organizations that provide business grants to Canadian businesses and aspiring entrepreneurs. The majority of them fall into one of four sectors: federal government; provincial government; municipal government, private organization; or non-profit organization.
Canadian Federal Government Funding
The largest source of grant funding for businesses is the Canadian federal government.
The federal government provides grants to businesses for a variety of reasons, including to support economic growth, job creation, and innovation:
Provincial Government Funding
Canadian provincial governments also have business grant programs (as well as tax credits and other types of financial incentives).
Provincial governments have similar reasons for providing incentives as the federal government, but also reasons related to:
Municipal Government Funding
Municipal governments in Canada don’t provide as many financial incentives as the federal or provincial governments, and funding tends to be focused on land-use and energy efficiency upgrades.
We have profiles of 80+ municipalities in Canada. You can find a list of those municipalities on our Funding
Private Organizations Funding
While private organizations (corporations) do give out grants to small businesses, they tend to be in the form of business competitions (in which a start-up pitches its business idea in return for funding), or small grants offered through business incubators. The other major way that private organizations fund businesses is through equity investments, which are made directly through angel investing or venture capital, or business accelerators.
Non-Profit Organizations Funding
Non-profit organizations typically offer business grants that target specific demographic groups that are under-represented in business, such as Indigenous entrepreneurs and women entrepreneurs.
How Hard Is It to Get a Small Business Grant in Canada?
The key to getting a small business grant is to find a grant program that is a close fit with your business idea (for a new business) or your funding needs (if you have an existing business).
There are many Canadian businesses that receive multiple grants from different grant organizations, year after year. When done right, it’s an unbeatable way to grow a business!
How Much Can You Get for a Business Grant?
Since there are hundreds of Canadian business grant programs, the value of the grants varies widely. In fact, in our database we have grant programs ranging from $2,500 (for sole proprietor startups and small retail businesses) to over $10 million (for large, established corporations) – and every dollar amount in between.
Having said that, there is more grant money available for established businesses than for start-ups.
Why?
Because grant-giving organizations see established businesses as less risky than start-ups. Makes sense – businesses with a track record have already proven themselves.
For start-ups, the key to getting any kind of funding, whether it be grants, loans, or other types of funding, is to ensure that:
How Many Business Grants Can I Apply For?
There is no limit on the number of business grants you can apply for.
It’s important to understand, however, that grant programs have specific eligibility criteria. Make sure to clearly understand the eligibility requirements for each grant program before applying, to increase your chances of success.
Grant Are Just the Start…
Remember that grants are just one type of financial incentive for businesses in Canada (learn about the other 52 types here).
We strongly recommend that every business owner develop a plan to “stack incentives”. Stacking incentives involves identifying every financial incentive that your business is eligible for (including grants, but also subsidies, rebates, tax incentives, and more).
Can I Apply for More Than One Grant for the Same Expense?
Yes! In some cases…
In the grants business we refer to the “stackability” of grants. Funding programs are “stackable” when grant recipients can combine multiple grants or funding sources to support a single project.
In a stackable grant program, recipients may be able to layer multiple grants or funding sources on top of each other to create a more substantial pool of funding for their project. This can allow recipients to leverage multiple sources of funding and maximize the impact of their project. It’s extremely important to find out if a grant is stackable. Which leads to a related important point.
What is a Grants Calendar and How Can It Help Me Get More Funding?
A grants calendar is a tool used by businesses to keep track of business grant opportunities throughout the year. It is a document that lists upcoming grant opportunities, application deadlines, and other important dates related to the grant application process.
Having a grants calendar is extremely important for businesses that want to stay organized and plan ahead for grant applications, ensuring you have enough time to complete necessary preparations such as researching grant guidelines, developing proposals, gathering supporting documents, and drafting budgets.
Bottom line: a grants calendar not only gets you excited by showing how much funding is available for your business over the next year – it can also reduce the stress of last-minute applications and increase your likelihood of grants success!
How Long Does It Take to Get a Business Grant?
Once you’ve applied for a business grant, the time it takes for approval of your application depends on the grant program. The time range is generally from four weeks to four months, although some hiring grant programs respond with as little as ten days.
As a rule of thumb, the larger the grant organization, the longer it can take to hear back from them. Check the grant program website to see if they have a timeframe for approval.
When Can I Apply for Government Funding?
The “intake periods” of government funding dictate when applicants can submit their funding applications and start incurring project expenses. There are two types of intake periods – “continuous intake” or “periodic intake”:
Continuous intake refers to a process where grant applications are accepted and reviewed on an ongoing basis, rather than being restricted to specific application periods or deadlines.
In a continuous intake system, applicants can submit their grant applications at any time, and the applications are typically reviewed on a rolling basis, with awards being made throughout the year. This system allows for more flexibility and responsiveness in the grant process, as it allows organizations and individuals to apply for funding as soon as they have a project or program that is ready for implementation, rather than having to wait for a specific application period.
Periodic intake refers to a process where grant applications are accepted and reviewed during specific application periods or cycles, rather than being accepted on an ongoing basis.
In a periodic intake system, grant applications are typically accepted during specific timeframes or cycles, which may occur on a quarterly, bi-annual, or annual basis. Applicants are required to submit their applications within these specified periods, and applications are then reviewed by the grant provider after the application period closes. Awards are typically made after all applications have been reviewed.
Periodic intake systems are often used for larger grants or grants that support specific initiatives or projects, such as research projects, infrastructure development, or capital projects. These types of grants may require more substantial planning and preparation, and may have more rigorous application requirements, which can make it difficult to accept applications on a continuous basis.
Steps to Get a Business Grant in Canada
Business grants have been around for decades, so there are some tried-and-tested steps to ensure success when applying.
We’ve grouped those steps into a framework we call the 3Fs: Find > Filter > Focus
3Fs Funnel for Maximizing Business Grants
- FIND all Business Grants. There are literally hundreds of grants available to Canadian entrepreneurs. To state the obvious: the more grants on your list, the more potential for free money for you!
- FILTER out the grants you’re not eligible for. You obviously don’t want to apply for grants that you have no chance of getting – that would be a huge waste of time.
- FOCUS on the grants that are a close match with your business. Once you have a shortlist of grants that are the closest match with your business’s activities, audiences, industries, and/or regions, you want to focus your time on creating the best application possible for each target grant.
Bonus Step to Maximize Your Business Funding
Here’s the one simple step to get all the funding you need for your business:
THINK BEYOND GRANTS
As we explore in our guide to Canadian business funding, there’s a universe of funding opportunities available to Canadian businesses, consisting of thousands of programs.
With such a wide range of funding programs, there are almost certainly options available for your business that you’ve never even heard of.
In our guide we cover 52 distinct types of business funding (besides grants) and grouped them into four buckets:
- Self-Funding (aka Bootstrapping a Business)
- Free Funding (Grants, Subsidies, Rebates & Much More)
- Debt Financing (Loans & Credit)
- Equity Financing (Selling a Stake in Your Business)
If you aren’t aware of these types of funding, you’re missing out. Click here to read the funding guide now.
Small Business Grants FAQs: Answers to Common Questions
In this section we answer more of the commonly asked questions we get from Canadian entrepreneurs regarding business grants:
