Hospitality Grants in Canada: Current Grants + Tips for Applying
The hospitality industry is a cornerstone of Canada’s economy, encompassing businesses such as hotels, restaurants, travel services, and event venues. With its reliance on tourism and consumer spending, the industry faces unique challenges and opportunities. Various funding options, including grants, loans, and equity investments, are available to support growth, innovation, and recovery.
Key Takeaways
- Hospitality business grants provide non-repayable financial assistance for projects that support innovation, workforce development, and recovery in the hospitality sector.
- Funding is offered by federal and provincial governments, non-profit organizations, and industry associations.
- Typical eligibility criteria include being part of the hospitality industry, aligning with grant objectives, and sometimes matching funds requirements.
- Funds can typically be used for activities such as workforce training, marketing campaigns, facility upgrades, and adoption of technology solutions.
- Complementary funding options include business loans, tourism recovery programs, and equity investments tailored to the hospitality industry.
What is a Grant for Hospitality Businesses?
A hospitality business grant is a form of non-repayable financial support provided by government bodies, non-profit organizations, or industry associations to support businesses in the hospitality sector. These grants aim to foster recovery, innovation, workforce development, and competitiveness by funding specific activities or projects that align with broader economic and industry goals.
Grants are typically categorized into:
- Activity Grants: Focused on funding specific business activities like workforce training, marketing, or technology upgrades.
- Audience Grants: Targeted at specific groups, such as women entrepreneurs or minority-owned businesses in the hospitality industry.
- Industry Grants: Designed to enhance innovation and competitiveness within the hospitality sector.
- Regional Grants: Aimed at boosting economic growth in specific provinces, territories, or underserved regions.
Grants vs Loans in Canada for Hospitality Entrepreneurs
| Aspect | Business Grants | Business Loans |
|---|---|---|
| Repayment | Not required | Required with interest |
| Financial Risk | Minimal | Moderate to high |
| Eligibility | Strict and project-specific | Based on creditworthiness |
| Application Process | Competitive and time-consuming | Faster but requires financial proof |
For specific projects such as workforce training, adopting new technologies, or marketing campaigns, grants can be highly beneficial. However, if your business needs immediate capital for general operations or expansion, loans offer a faster and more flexible option.
Types of Grants for Hospitality Businesses in Canada
Federal Government Grants for Hospitality Businesses
Federal government grants focus on national priorities like innovation, workforce development, and recovery in the hospitality sector. These grants often fund projects with significant industry impact, including sustainable practices, digital transformation, and advanced marketing strategies. Federal initiatives frequently support businesses adopting cutting-edge technologies to enhance customer experiences and improve operational efficiency.
Provincial Government Grants for Hospitality Businesses
Provincial government grants address region-specific needs and aim to promote tourism and local economic development. These grants often fund projects such as marketing campaigns highlighting local attractions, investments in regional events, and facility upgrades. They also target rural or underserved areas, supporting SMEs with workforce training and sustainability efforts to boost community-level economic activity.
Non-Profit Grants for Hospitality Businesses
Non-profit organizations and industry associations provide grants to encourage collaboration, sustainability, and innovation in the hospitality sector. These grants often fund programs that promote diversity, community engagement, and leadership development. Non-profit grants may also support businesses implementing initiatives that enhance cultural and environmental sustainability or foster partnerships with local suppliers and community groups.
Eligibility Criteria for Hospitality Business Grants in Canada
Eligibility criteria for hospitality business grants are designed to ensure funds are allocated to impactful and relevant projects. Key criteria include:
1. Industry Alignment
2. Project Specificity
3. Geographic Requirements
4. Business Size and Status
5. Financial Contribution
6. Expected Impact
7. Required Documentation
Applying for Hospitality Business Grants: Top 5 Tips
1. Identify Relevant Grants
2. Develop a Detailed Proposal
3. Demonstrate Financial Stability
4. Align with Grant Objectives
5. Follow-Up After Submission
Alternatives to Hospitality Business Grants in Canada
Business Loans & Credit for Hospitality
Startup Programs for Hospitality
Equity Investment Programs for Hospitality
Hospitality Business Grants – Current Grants Available in Canada
In the sections below you’ll find a sample of the federal and provincial grants currently available for hospitality businesses in Canada:
$2,500.00
Grant
Description:
The Web Presence Assistance is a non-repayable contribution provided to Prince Edward Island businesses and local not-for-profits to assist them in establishing a presence on the Internet or to upgrade an existing website to include e-commerce. The purpose of this assistance is to help Island businesses and not-for-profits increase business by creating a website to establish online visibility and reach.
No specific amount was identified.
Subsidy
Description:
The Trade Accelerator Program (TAP) is an innovative 4-session initiative, designed to accelerate the strategic development of your business and to better prepare you for an expansion into international markets. With TAP, you’ll get the tools, connections and knowledge you need to take your business into new markets. Our team understands the challenges you’re facing and is here to support and prepare you.
$5,000,000
Grant, Loan, Investment
Description:
Improving the condition of the hotel park infrastructure and adding tourist accommodation units;
More specifically, this component aims to:
The renovation and upgrading of accommodation units, meeting or conference rooms, public areas (entrance hall, reception, rest areas, public toilets, bar and other interior fittings) or the exterior structure of the building (cladding, roof, doors and windows, etc.);
The addition of hotel infrastructure.
$15,000
Grant
Description:
The Tourism Cooperative Marketing Fund (TCMF) helps the Yukon’s tourism industry attract visitors and gain international exposure. These marketing activities help strengthen the territory’s tourism brand.
$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.
No specific amount was identified. Consult the program Framework/guide for detailed one.
Grant, Subsidy
Description:
The Quebec Alcohol Positioning Support Program – Support for increasing sales and the supply of Quebec alcohol in the Société des alcools du Québec network (PAPAQ, section 1) aims to increase sales and the supply of value-added products from Quebec alcoholic beverage producers.
$20,000
Grant
Description:
This is a matching reimbursement grant for small exterior renovations
$50,000
Grant
Description:
This is a matching reimbursement grant for large, significant exterior renovations, up to 50% of project costs.
$5,000
Grant
Description:
The Spark Tourism Micro-grant program supports new and emerging entrepreneurs who offer visitor experiences and services in the Yukon. The program helps turn your idea into reality and acts as a catalyst to spark larger future projects.
$5,000,000.00
Grant, Loan
Description:
The Southwestern Ontario Development Fund provides support for projects and investments to existing businesses, municipalities and not-for-profit organizations for economic development in southwestern Ontario. The objective of the program is to provide financial support and services to help growing companies in southwestern Ontario make investments to:
1. Grow their businesses
2. Improve productivity
3. Invest in innovation and skills development
4. Pursue new markets
5. Generate broad positive regional economic impact
6. Create new good, sustainable jobs
A project is a distinct undertaking, separate from ongoing operations, that will result in benefits to the organization such as business growth or access to new markets.
$10,000.00
Grant
Description:
This program provides grants to individuals, organizations, businesses, or societies who wish to undertake projects and/or activities that support the promotion, advocacy, research, development and diversification of Nunavut’s sealing and fur sectors.
$100,000.00
Grant
Description:
This program encourages the use of Nunavut sealskins for the value-added sealskin industry. The program provides Nunavut harvested dressed and/or dyed sealskins to Nunavummiut at cost price to ensure equal and easy access to sealskins for all Nunavummiut. The program acquires its seal skins exclusively from Department of Environment’s Sealskin Purchasing Program which provides financial compensation to harvesters for quality sealskins.
$150,000.00
Grant
Description:
This program provides financial assistance to individuals, organizations, businesses, or societies who wish to undertake projects and/or activities that support the promotion, advocacy, research, development and diversification of Nunavut’s sealing and fur sectors.
no fixed amount
Grant
Description:
The Save on Energy Retrofit program offers businesses in Ontario incentives to upgrade equipment, reduce energy bills, lower their carbon footprint and increase productivity. The incentives are designed to help businesses speed up their payback on energy-efficiency equipment upgrades. The program offers incentives in two streams:
– Custom stream for larger, more complex retrofit projects to capture greater energy savings;
– Prescriptive stream for targeted retrofit projects focusing on commonly used products and technologies.
$50,000
Grant
Description:
The Revitalization Extensive Project Fund offers organizations the opportunity to apply for funding for larger-scale projects in Revitalization Areas.
$10,000
Grant
Description:
Small retail businesses are the heart of Toronto’s main streets, employ thousands of residents, and are a key driver of the city’s prosperity.
This program provides access to retail training, advisory services and mentoring opportunities. In addition, it offers a micro grant valued at $10,000 to help retail businesses develop and expand.
No specific amount was identified.
Tax Credit
Description:
In order to benefit from the tax credit for carrying out a design activity (internally or externally), a company must obtain a certificate with regard to a design activity for industrially manufactured goods (or “certificate of activity”).
No fixed amount
Subsidy
Description:
Nutrition North Canada is a Government of Canada program that helps 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 soap, hand-sanitizers and personal hygiene products, sold by registered retailers, suppliers, and country food processors.
No funding involved
In-Kind Support
Description:
Nova Scotia Loyal is a government program designed to make it easier for Nova Scotians to identify, purchase, and support local products.
No funding involved
In-Kind Support
Description:
The Island Good logo is a trusted brand, now available to growers, producers, processors, distributors, and retailers on Vancouver Island and the surrounding rural islands. Businesses can use the logo on product packaging, signage, websites, and social media to highlight their connection to the local community.
$50,000.00
Competition
Description:
The HardTech Pitch Competition, held in partnership by ventureLAB and the Regional Municipality of York, is open to small and medium enterprises incorporated in Canada developing hardware innovations. Finalists will have the opportunity to pitch for their chance to take home a collective $50,000 in cash and showcase their breakthrough products and innovations in hardware technology to a broad audience including industry, investors, government, media, and more!
$125,000.00
Grant
Description:
The Grow Ontario Market Initiative provides funding to primary producers, processors and industry organizations to find and develop domestic or export market opportunities.
You may use the funding to grow your business through:
1. Marketing analysis and planning
2. New product development
3. Marketing activities
$3,000,000
Grant
Description:
The FSDR program is under the Food Affordability and Innovation Fund (FAI), an up to $20M fund. FAI aims to improve the affordability of food in BC through targeted investments in supply chains, food system innovations and partnerships. Specifically, the Fund will support approaches and collaborations at strategic nodes along the food supply chain to strengthen and streamline logistics, storage and transportation and improve access to affordable food, particularly in remote, rural, and/or indigenous communities. Learn more about FAI.
$5,000,000
Loan, Investment
Description:
The Financing Fund for Hotel Establishments (PADAT section 2) is part of the perspective of responding to a significant need for renewal of infrastructure in the hotel accommodation sector. Read the contents of note number1. This component aims to improve the state of the hotel infrastructure and add tourist accommodation units.
$250,000
Grant, Loan, Subsidy
Description:
This simplified component of the EcoPerformance program offers a subsidy to supermarkets and convenience stores that wish to install a refrigeration system that runs on CO2 , which is not very harmful to the environment.
No specific amount was identified.
Grant, Loan, Subsidy
Description:
The simplified component of the EcoPerformance program supports small energy consumers in the business sector who wish to heat their building with electricity instead of using fuel oil or propane. Read the contents of note number1 .
No fixed amount
Grant
Description:
Downtown Kitchener is a hub of activity, and downtown businesses want to make a lasting impression on visitors. Our façade grant program can help.
We offer grants to eligible downtown property owners and tenants who want to make street-facing building façade improvements.
$200,000
Grant, In-Kind Support
Description:
The Boilers program is designed to provide system upgrade, expert help and incentives to improve boiler energy efficiency and saves money. Without proper system design, boilers can waste energy and increase operational costs. Enbridge Gas’ Energy Solutions Advisors can help eligible customers identify projects and take advantage of incentives through the following programs:
1. Affordable Multi-Family Housing Program;
2. Commercial Custom Retrofit Program;
3. Industrial Custom Engineering Program.
no fixed amount
Rebate
Description:
Efficiency Nova Scotia provides energy rebates to businesses that choose energy efficient product solutions that can help them save energy, and the environment. The rebates make it more affordable to integrate these products into the business.
$5,000,000.00
Grant, Loan
Description:
The Eastern Ontario Development Fund provides support for projects and investments to existing businesses, municipalities and not-for-profit organizations for economic development in eastern Ontario. The objective of the program is to provide financial support and services to help growing companies in eastern Ontario make investments to:
1. Grow their businesses
2. Improve productivity
3. Invest in innovation and skills development
4. Pursue new markets
5. Generate broad positive regional economic impact
6. Create new good, sustainable jobs
A project is a distinct undertaking, separate from ongoing operations, that will result in benefits to the organization such as business growth or access to new markets.
$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.
$10,000
Grant
Description:
The Corner Store grant program is targeted to Neighbourhood Commercial properties or properties that meet the commercial needs of local residents.
Improvements to an underutilized ground floor or vacant commercial interior space.
$20,000
Grant
Description:
The Corner Store grant program is targeted to Neighbourhood Commercial properties or properties that meet the commercial needs of local residents.
Improvements to an underutilized ground floor or vacant commercial interior space.
$15,000
Grant
Description:
The Corner Store grant program is targeted to Neighbourhood Commercial properties or properties that meet the commercial needs of local residents.
Exterior improvements to active storefronts
$60,000
Grant
Description:
The Corner Store grant program is targeted to Neighbourhood Commercial properties or properties that meet the commercial needs of local residents.
Exterior improvements to active storefronts.
$8,000
Grant
Description:
Murals are an important form of public art that can have a profound and positive impact on a city and its well-being.
No specific amount has been identified.
Grant
Description:
This program offers technical assistance to employers who are considering implementing collective dismissals. Besides, it provides financial support to help cover the expenses associated with running the committee and carrying out reclassification activities.
No funding is involved
Accelerator
Description:
The Circular Economy Accelerator Program provides 1:1 support to businesses seeking to find operational efficiencies, reduce waste and emissions, increase revenue, and develop innovative practices. This program – the first of its kind in Canada – will position your business as an industry leader, attracting talent and investment, increasing revenue, and paving the way to a prosperous, sustainable, and resilient future for your community.
There is no minimum or maximum amount for individual projects.
Grant
Description:
The Chinatown Vibrancy Fund aims to support the implementation of the Chinatown Strategy by bringing visitors into the area through festivals, events and cultural projects as well as building community cohesion and empowering residents both housed and unhoused
No fixed amount
Investment
Description:
The $500 million Growth Venture envelope continues and expands on the mandate of the previous Funds I and II. It targets late-stage, innovation-based businesses that are at an inflection point and show strong potential for meaningful scale. Our team and network give entrepreneurs the structure and strategies to build markets worldwide.
About the author
Maurice
