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:
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.
Advertising and marketing: TCMF covers 50% of approved activities; contributions between $2,500 and $25,000 for Yukon tourism businesses, First Nations Governments, Municipalities and non-government organizations, and up to $50,000 for Yukon Destination Marketing Organizations. Travel-related activities (flat rates): approved shows $1,400/show Western Canada, $2,800/show Central Canada, $3,800/show Atlantic Canada, $3,800/show United States, $4,200/show overseas; all other travel-related activities (familiarization tours, sales calls, sales missions, etc.) up to $2,000/activity.
Grant
Description:
The Tourism Cooperative Marketing Fund (TCMF) helps the Yukon’s tourism industry attract visitors and gain international exposure.
Matching reimbursement grant of 50 per cent of the project total to a maximum of $1,000 per building
Grant
Description:
For commercial buildings and businesses located or planning to locate in Business Improvement Areas (BIAs), the City offers the following grants:
This is a matching reimbursement grant for small exterior renovations, up to a maximum of $1000 per building.
Matching reimbursement grant of up to 50% of eligible costs, to a maximum of $25,000 for a mid-block building, or for a corner building $50,000 if both facades facing public sidewalks are active ($25,000 / facade) or $30,000 if one facade is active ($25,000 active, $5,000 inactive)
Grant
Description:
For commercial buildings and businesses located or planning to locate in Business Improvement Areas (BIAs), the City offers the following grants:
This is a matching reimbursement grant for large, significant exterior renovations, up to 50% of project costs.
Successful applicants receive between $1,000 and $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.
Business projects: up to 15% of eligible project costs — loans up to 15% to a maximum of $5M, interest free during the project period (up to 4 years), with up to 30% of the loan (to a maximum of $500,000) forgivable; grants up to 15% to a maximum of $500,000 (rural companies with fewer than 100 employees) or $1,500,000 (strategic projects). Community economic development projects: up to 50% of eligible project costs for a maximum grant of up to $1.5 million
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.
$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.
Up to 50% of eligible project costs (Prescriptive set incentives or Custom incentives from verified kWh/kW peak reductions); double incentive rate for most non-lighting projects in electricity-constrained areas, capped at 50% of eligible project costs; solar PV $1,000/kW-DC for systems ≤10 kW-DC or $770/kW-AC for systems >10 kW-AC up to 1 MW-AC
Grant
Description:
We help businesses by providing financial incentives to upgrade to more energy-efficient equipment that can reduce energy bills, lower carbon footprints and enhance staff comfort.
Projects that achieve sustainable, measurable reductions in electricity use may be eligible for the Save on Energy Retrofit Program.
Funding for larger scale projects from $20,001 up to $50,000
Grant
Description:
The Revitalization Extensive Project Fund (REPF) offers applicants the opportunity to apply for funding for larger-scale projects in Revitalization Areas.
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 specific amount specified
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.
Whether you’re a consumer, retailer, or producer – Nova Scotia Loyal has a way to help you express your loyalty for local.
No specific amount specified
In-Kind Support
Description:
Island Good is a membership program, stewarded by the Vancouver Island Economic Alliance, for businesses that make or manufacture goods on Vancouver Island or the Rural Islands, or that carry, use or showcase Island-made products. Members pay an annual licensing fee based on the size of their organization.
Share of $50,000 in cash prizes awarded to the top two ventures, plus 1:1 pitch coaching and an exclusive booth at HardTech Summit for finalists
Competition
Description:
The HardTech Pitch Competition connects Canada’s top hardware innovators with high-profile investors, strategic partners, and government champions.
If you’re a Canadian SME with bold tech and big potential, this is where deals begin.
50% of Eligible Costs up to a maximum of $60,000.00 per Project for Processor and Primary Producer Recipients; 50% of Eligible Costs up to a maximum of $125,000 per Project for Industry Organization Recipients
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.
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.
Business projects: up to 15% of eligible project costs (loans up to 15% to a maximum of $5M, interest free during the project period, up to 30% of the loan to a maximum of $500,000 may be forgiven; grants in specific circumstances up to 15% to a maximum of $500,000 or $1,500,000); Community economic development projects: up to 50% of eligible project costs for a maximum grant of up to $1.5 million
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.
Exterior: up to 50% of eligible construction costs, maximum $20,000 to $90,000 per building based on storefront linear footage, and a maximum of $120,000 per commercial site; Interior: up to 50% of eligible construction costs, maximum $20,000 per contiguous commercial site
Grant
Description:
The Corner Store Grant program provides matching reimbursement for exterior and interior renovations to property owners in Neighbourhood Commercial Areas.
$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.
Up to $8,000 each in funding on a matching funds basis; applicants must contribute 25% of the total requested funding (provided on a reimbursement basis)
Grant
Description:
This funding can be used for consultations, artist services, paint supplies, anti-graffiti coating or other needs associated with the creation and installation of a mural.
1. Community Mural Grant Projects for community leagues, non-profit organizations or licensed businesses will be eligible for funding based on a matching funds basis
No specific amount specified
In-Kind Support, Accelerator
Description:
The Circular Economy Accelerator Program sought to create an inclusive circular economy in urban and rural communities within the Vancouver Island-Coast region. This project supported existing businesses to incorporate circular economy practices into their operations and facilitate regional cluster development to divert waste to circular processes and new economic opportunities in these communities.
No specific amount specified
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.
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