Manufacturing Grants in Canada: Current Grants + Tips for Applying
The manufacturing industry is a critical driver of Canada’s economy, producing goods that serve domestic needs and support global trade. From advanced manufacturing technologies to traditional production lines, the sector is vital for job creation, innovation, and economic resilience. To help businesses in this industry thrive, various funding opportunities, including grants, loans, and equity investments, are available.
Key Takeaways
- Manufacturing business grants provide non-repayable financial support for projects that drive innovation, improve efficiency, and support workforce development in the manufacturing sector.
- Funding is offered by federal and provincial governments, non-profit organizations, and industry associations.
- Typical eligibility criteria include operating within the manufacturing industry, aligning with grant objectives, and sometimes matching funds requirements.
- Funds can typically be used for activities such as adopting new technologies, improving sustainability, scaling production, and workforce training.
- Complementary funding options include business loans, tax incentives, and equity investments tailored to the manufacturing sector.
What is a Manufacturing Grant?
A manufacturing grant is a non-repayable financial resource provided by government bodies, non-profit organizations, or industry associations. These grants aim to support businesses in achieving goals such as innovation, sustainability, and economic growth by funding specific activities or projects that align with broader industry and government priorities.
Grants are typically categorized into:
- Activity Grants: Focused on funding specific manufacturing activities such as R&D, technology adoption, or energy efficiency improvements.
- Audience Grants: Targeted at specific groups, such as women-owned manufacturing businesses or Indigenous entrepreneurs.
- Industry Grants: Designed to support the advancement of the manufacturing sector as a whole, including collaborative initiatives.
- Regional Grants: Aimed at bolstering economic development in particular provinces, territories, or underserved areas.
Grants vs Loans in Canada for Manufacturing
| 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 like upgrading production lines, implementing advanced technologies, or conducting R&D, grants are highly beneficial. Loans, however, are ideal for broader or urgent needs, such as scaling operations or managing cash flow.
Types of Grants for Manufacturing in Canada
Federal Government Grants for Manufacturing
Federal grants focus on national priorities such as advancing manufacturing technologies, fostering clean energy solutions, and improving workforce capabilities. These grants often fund projects with industry-wide impact, including automation adoption, sustainability initiatives, and digital transformation. Federal programs also aim to enhance Canada’s global competitiveness in manufacturing by supporting export-oriented businesses.
Provincial Government Grants for Manufacturing
Provincial grants address region-specific manufacturing challenges and opportunities. These grants frequently support small and medium-sized enterprises (SMEs) in areas such as process modernization, energy efficiency upgrades, and workforce development. Many provinces offer grants tailored to their key manufacturing industries, such as automotive, aerospace, or food processing, helping businesses thrive within their regional economies.
Non-Profit Grants for Manufacturing
Non-profit organizations and industry groups often provide grants to promote innovation, collaboration, and sustainability within the manufacturing sector. These grants may focus on industry-specific projects, such as adopting eco-friendly production methods, fostering partnerships between manufacturers and research institutions, or developing community-driven initiatives that enhance local manufacturing capabilities.
Eligibility Criteria for Manufacturing Grants in Canada
Eligibility criteria for manufacturing business grants are designed to prioritize 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 Manufacturing Grants: Top 5 Tips
1. Research Grant Opportunities
2. Create a Strong Proposal
3. Show Financial Stability
4. Align with Grant Priorities
5. Engage Early and Follow Up
Alternatives to Manufacturing Grants in Canada
Business Loans & Credit for Manufacturing
Startup Programs for Manufacturing
Equity Investment Programs for Manufacturing
Manufacturing Grants in Canada – Current Grants Available
In the sections below you’ll find a sample of the federal and provincial grants currently available for manufacturers businesses in Canada:
Generally up to 33% of eligible capital costs and up to 50% of eligible non-capital costs; assistance available for SMEs is repayable
Loan
Description:
Through its Regional Economic Growth through Innovation program, FedNor can help existing Northern Ontario manufacturers upgrade and improve capital equipment used in manufacturing processes, including information and communications technology, to improve their competitiveness and productivity.
Up to 50 percent of eligible project costs to a maximum of $15,000 per assessment; contributions are non-repayable
Grant
Description:
Through its Regional Economic Growth through Innovation program, FedNor can help existing Northern Ontario manufacturers to better plan, prioritize and implement changes that will result in efficiencies, improved quality, productivity, profitability and overall competitiveness.
Up to $10,000 of matched funding per four-month internship, to a maximum of $20,000 per company (1:1 match by the SME)
Grant
Description:
The Talent Development – Internship Program (TDI) provides support for recent undergraduate or Master’s graduates, to work on industry- driven projects related to the six CIT Critical Technology areas: 5G and advanced networks, AI, Blockchain, Cybersecurity, Quantum, and Robotics, in any one of the four key sector areas: Advanced Manufacturing, Agri-Food, Construction, Mining. Companies can tap into world-class talent coming out of Ontario’s publicly funded post-secondary institutions and strengthen their capacity to develop new products, services and processes, while interns receive hands-on industry experience in areas such as software and hardware development, artificial intelligence, and data analytics.
Up to 40 per cent of eligible costs to a maximum of $20,000 in assistance per approved project (up to two applications per business within a twelve-month period, totaling a maximum of $20,000)
Grant
Description:
Strategic Improvement Assistance supports Prince Edward Island businesses undertaking strategic activities to become more productive, profitable and competitive. The program supports costs for outside professional expertise required for projects related to improving operational efficiencies, internal planning or processes, and quality assurance.
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.
Grant equivalent up to 100 percent of the municipal property tax increase created by the project for up to 10 years after project completion
Grant
Description:
Intended to provide financial incentive to stimulate new investment in small businesses in the targeted sectors for the purposes of expanding and diversifying the local economy.
Consists of a grant program, whereby new or existing businesses that are expanding will be eligible to receive a grant for a percentage of the tax increment generated from the investments made in the development or redevelopment of the building or property in conformity with this Community Improvement Plan (CIP).
$1,000,000
Grant
Description:
As part of the broader Critical Industrial Technologies initiative, the Sector Adoption (SA) Program is a challenge based multi-partner program that drives significant impact and advancement of a whole sector.
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.
Non-repayable grants of up to $450,000 per project; the funding request is for no more than 30 per cent of the proposed budget
Grant
Description:
The Saskatchewan Advantage Innovation Fund (SAIF) accelerates the commercialization of game-changing innovations in Saskatchewan’s core sectors.
SAIF provides non-repayable grants of up to $450,000 to novel technological solutions that address specific industry challenges and benefit Saskatchewan’s core sectors.
Up to 15% of eligible project costs; loans up to 15% to a maximum of $5 million, interest free during the project period (up to four years), with up to 30% of the loan (to a maximum of $500,000) forgivable; grants only in specific circumstances, up to 15% to a maximum of $500,000 for small companies in rural communities or $1.5 million for strategic projects
Grant, Loan
Description:
The Advanced Manufacturing and Innovation Competitiveness (AMIC) Stream will provide financial support to advanced manufacturing companies with a focus on small and medium-sized enterprises across Ontario.
$10,000
Grant
Description:
The Next Level program provides funding for Northwestern Ontario businesses with an innovative product or service and looking to expand. The support may be applicable to contracted expertise, services or direct costs in any of the following areas: equipment purchase, expansion to new markets, conference & tradeshows costs ($1,000 max), training & certification costs.
Up to 50 per cent of eligible costs to a maximum of $50,000 in assistance per approved project
Grant
Description:
The Innovation Fund assists businesses to bring a new product, service, or process (“product”) to market by providing financial support for the costs to refine and commercialize an innovative product that has demonstrated potential for export market uptake.
Grants of up to $20,000 per unit for projects receiving funding under other HAF initiatives, up to $10,000 per unit for projects not receiving funding under other HAF initiatives, and $5,000 per unit for projects funded under the HAF Missing Middle Intensification (Infill and ADU) grant program; funding for a maximum of 10 units per application
Grant
Description:
The City of Fredericton’s Housing Accelerator Fund (HAF) Modular and Manufactured Housing Grant program (the “Program”) provides grants to facilitate the use of modular or manufactured construction for new rental or home ownership units. It is intended to further reduce the cost of construction for new housing units and provide an opportunity to further grow the missing middle housing option. Both non- profit and private sector developers as defined below are eligible for funding under the Program subject to Program guidelines.
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.
Up to $10,000 of matched funding per company (1:1 match by the SME)
Grant
Description:
The Future Ready (FR) program provides support for Ontario-based SMEs working in CIT’s four key sectors (Advanced Manufacturing, Construction, Agri-food and Mining) to upskill/reskill current employees on Critical Technologies (5G and advanced networks, AI, Blockchain, Cybersecurity, Quantum,
and Robotics) to support the company’s adoption of Critical Technologies and commercialization of new products and services. Under this program eligible SMEs receive support to hire an external third-party consultant to train their employees in the adoption and implementation of these Critical Technologies.
Up to 60% of pre-determined eligible costs for approved Global Trade Services trade activities; up to 75% of pre-determined eligible costs, to a maximum Innovation PEI contribution of $3,000, for incoming buyers; combined non-repayable government funding cannot exceed 75 per cent of eligible costs
Grant
Description:
Export Trade Assistance provides support to Prince Edward Island exporting businesses to explore new global opportunities. Support may be available to participate in Innovation PEI’s Global Trade Services coordinated trade activities, focused on international and domestic exporting, or to bring buyers and business partners to Prince Edward Island to strengthen business relationships or close sales.
Program Contribution 50% (maximum) of total eligible project costs, up to $50 000; SME Applicant Company 50% (minimum) of total eligible project costs
Grant
Description:
The ENCQOR 5G Demonstration Program supports standalone small- and medium-sized enterprise (SME) projects and SME collaborations with industry partners and/or public sector organizations such as municipalities, healthcare facilities, public utilities for testing and validation activities using the ENCQOR 5G Innovation Platform as a Service (iPaaS) testbed in order to develop or advance new technologies, products, processes and services.
100 per cent of the increase in the municipal taxes attributable to the eligible development over a five-year period (temporarily increased from 60 per cent of the Municipal Tax Increment); up to seven years when combined with Brownfield Remediation Tax Assistance
Grant
Description:
The Economic Development and Growth in Employment (EDGE) Incentive Program supports new construction or major renovation of buildings in targeted employment sectors. The program provides tax increment equivalent grants, whereby the City refunds a portion of the increase in property taxes that results from new development or redevelopments.
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.
$70,000
Grant, In-Kind Support
Description:
In partnership with Dalhousie University, and Landmark Decisions Inc., the Digital Twinning for an Organization (DTO) Adoption Program enables Atlantic Canadian small and medium-sized enterprise (SME) manufacturers to get the consulting, staff, and education required to adopt DTO simulation modeling.
Grant to offset up to 100 percent of development charges paid for a project
Grant
Description:
The program is aimed at attracting new businesses to the city and the expansion of existing businesses through the development, redevelopment, rehabilitation or adaptive reuse of buildings and properties in the Community Improvement Project Area.
Consists of a grant program, whereby businesses will be eligible to receive a grant for a percentage of the development charges owing from the development or redevelopment of a building(s) or property in conformity with this Community Improvement Plan (CIP).
$200,000
Grant
Description:
The Development and Commercialization (DC) Program supports the development and commercialization of Ontario made products and services that integrate/adopt Critical Technologies (5G and advanced networks, AI, blockchain, robotics, quantum, cybersecurity) related to four key sectors: Advanced Manufacturing, Agri-Food, Construction and Mining.
Non-repayable grant and contribution funding of up to 75% of eligible project expenditures (above 75% considered under exceptional circumstances); stacking up to a maximum of 100% of eligible costs
Grant
Description:
The NRC developed 5 funded collaborative research and development (R&D) programs led by NRC program directors.
These funded collaborative R&D programs help bring together the NRC’s national network of researchers and facilities with collaborators from industry, academia, and governments to work on game-changing scientific discoveries and technological breakthroughs. Grant and contribution (G&C) funding is provided through the NRC’s National Program Office (NPO) to collaborators offering complementary expertise, including academic institutions and SMEs.
Up to 25 per cent of the eligible costs to a maximum of $25,000 assistance (combined non-repayable government funding cannot exceed 75 per cent of eligible costs)
Grant
Description:
Capital Acquisition Assistance supports Prince Edward Island businesses investing in technology, equipment, and infrastructure needed to grow their business and increase capacity and competitiveness. The program provides businesses with financial assistance to leverage other traditional and non-traditional financing and reduce risk.
$200,000 to $5M per project, as interest-free repayable contributions
Loan
Description:
The Business Scale-up and Productivity (BSP) program invests in high-growth businesses in B.C. that are scaling and developing innovative goods, services or technologies. It focuses on both established and emerging sectors to enhance B.C.’s leadership in priority areas.
Interest-free, repayable funding up to 50% of eligible project costs: minimum $200,000; maximum $5 million per project from PrairiesCan (maximum $10 million to any 1 organization)
Loan
Description:
It supports high-growth* businesses that are seeking to improve productivity, scale-up and commercialize technology. It offers interest-free, repayable funding to incorporated businesses
Grant equivalent up to 100 percent of the municipal property tax increase created by the project for up to 10 years after project completion
Grant
Description:
Intended to provide incentive to encourage existing businesses to make new capital investment in targeted economic sectors for the purposes of expanding and diversifying the local economy.
Consists of a grant program, whereby existing businesses will be eligible to receive a grant for a percentage of the tax increment generated from the investments made in the development or redevelopment of the building or property in conformity with this Community Improvement Plan (CIP).
Repayable term loans at an interest rate equal to the Bank of Canada rate + 0.5%
Loan
Description:
The Business Investment Program provides term loans to small and medium-sized enterprises (SMEs) in strategic growth sectors as identified by Jobs, Growth and Rural Development. The fund is also available to businesses which have export potential and require assistance to enter or expand in external markets.
Grant equivalent up to 100 percent of the municipal property tax increase created by the project for up to 10 years after project completion
Grant
Description:
Intended to provide financial incentive to stimulate new investment in targeted economic sectors for the purposes of expanding and diversifying Windsor’s economy.
Consists of a grant program, whereby new businesses will be eligible to receive a grant for a percentage of the tax increment generated from the investments made in the development or redevelopment of the building or property in conformity with this Community Improvement Plan (CIP).
$50,000
Grant
Description:
The BC Manufacturing Jobs Fund (BCMJF) is helping manufacturing companies modernize, innovate, and grow by providing funding for capital projects in all regions in B.C., particularly in communities affected by economic impacts or downturns.
The program welcomes applications from all manufacturing sectors. There is a particular focus on helping the forestry sector retrofit and develop new, sustainable value-added business lines that reduce dependency on old growth logging and make innovative use of biomaterials.
No specific amount specified
Grant
Description:
The BC Manufacturing Jobs Fund (BCMJF) first launched in 2023 to support manufacturing companies to modernize, innovate, and grow by providing funding for capital projects in all regions in B.C., particularly in communities affected by economic impacts or downturns.
75% of eligible costs, to a maximum non-repayable contribution of $50,000
Grant
Description:
The Advanced Manufacturing Technology Assessments will assist manufacturers who are seeking innovative solutions to increase their efficiency, productivity and competitiveness.
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