Transportation Industry Grants in Canada: Current Grants + Tips for Applying

The transportation industry is the backbone of Canada’s economy, connecting people, goods, and services across vast distances. This sector includes businesses involved in logistics, freight, passenger transport, and infrastructure development.

With increasing demands for efficiency, sustainability, and innovation, transportation companies often require funding to modernize operations and expand their capabilities. Various funding opportunities, including grants, loans, and equity investments, are available to support businesses in this dynamic sector.

Key Takeaways

  • Transportation business grants provide non-repayable financial assistance for projects that enhance efficiency, sustainability, and infrastructure within the transportation sector.
  • Funding is offered by federal and provincial governments, non-profit organizations, and industry associations.
  • Typical eligibility criteria include operating within the transportation industry, alignment with grant objectives, and sometimes matching funds requirements.
  • Funds can typically be used for activities such as technology adoption, fleet upgrades, sustainability initiatives, and workforce development.
  • Complementary funding options include business loans, tax incentives, and equity investments tailored to the transportation industry.

What is a Transportation Business Grant?

A business grant in the transportation industry is a form of non-repayable financial support provided by government bodies, non-profit organizations, or industry associations to support innovation, sustainability, and infrastructure development within the transportation sector.

Transportation business grants address challenges such as reducing environmental impacts, modernizing fleets, and improving logistics efficiency by funding specific projects that align with industry and government priorities.

Grants are typically categorized into:

  • Activity Grants: Focused on funding specific activities such as fleet modernization, implementing advanced logistics systems, or improving safety protocols.
  • Audience Grants: Targeted at specific groups, such as women-owned transportation businesses or Indigenous entrepreneurs.
  • Industry Grants: Designed to support the overall advancement of the transportation sector, including collaborative and innovation-driven initiatives.
  • Regional Grants: Aimed at fostering transportation growth in specific provinces, territories, or underserved areas.

Grants vs Loans in Canada for Transportation Businesses

AspectBusiness GrantsBusiness Loans
RepaymentNot requiredRequired with interest
Financial RiskMinimalModerate to high
EligibilityStrict and project-specificBased on creditworthiness
Application ProcessCompetitive and time-consumingFaster but requires financial proof


For specific projects like upgrading fleets, adopting new technologies, or improving logistics systems, grants are highly beneficial. Loans, however, are ideal for broader or immediate financial needs, such as covering operational costs or expanding services.

Types of Grants for the Transportation Industry in Canada

Federal Government Grants for Transportation Businesses

Federal grants focus on national priorities such as improving transportation infrastructure, advancing clean technologies, and enhancing logistics systems. These grants often fund large-scale projects with significant industry impact, including the adoption of electric vehicles, the development of smart transportation networks, and the implementation of sustainable practices. Federal programs also aim to strengthen Canada’s competitiveness in global trade by improving supply chain efficiency.

Provincial Government Grants for Transportation Businesses

Provincial grants address region-specific challenges and opportunities within the transportation sector. These grants frequently support projects that drive local economic development, such as improving regional transit systems, upgrading freight corridors, and adopting energy-efficient technologies. Many provinces also provide funding for businesses in rural or underserved areas to enhance transportation connectivity and infrastructure.

Non-Profit Grants for Transportation Businesses

Non-profit organizations and industry associations provide grants to encourage innovation, collaboration, and sustainability within the transportation sector. These grants often fund initiatives such as workforce training programs, partnerships with research institutions, and community-driven projects aimed at improving transportation accessibility and safety. Non-profit grants may also support businesses in addressing emerging trends like green logistics and autonomous vehicle integration.

Eligibility Criteria for Transportation Business Grants in Canada

Eligibility criteria for transportation business grants are designed to prioritize impactful and regionally relevant projects. Key criteria include:

1. Industry Alignment

  • Businesses must operate within the transportation sector and align with the grant’s objectives, such as sustainability, innovation, or regional development.

2. Project Specificity

  • Grants typically fund well-defined projects, such as fleet upgrades, implementing advanced logistics systems, or adopting green technologies. Detailed plans and measurable outcomes are essential.

3. Geographic Requirements

  • Some grants target specific regions or underserved areas to enhance local transportation networks and economic activity.

4. Business Size and Status

  • Eligibility may extend to small and medium-sized enterprises (SMEs), startups, or larger organizations, depending on the grant’s focus. Certain grants may also prioritize community-led or minority-owned transportation businesses.

5. Financial Contribution

  • Many grants require applicants to provide matching funds, demonstrating financial stability and commitment to the project.

6. Expected Impact

  • Applications should highlight how the project will benefit the transportation industry, such as reducing emissions, improving logistics efficiency, or creating jobs.

7. Required Documentation

  • Applicants may need to provide proof of business registration, financial statements, project proposals, and relevant certifications or permits.

Applying for Transportation Business Grants in Canada: Top 5 Tips

1. Research Grant Opportunities

  • Identify grants at federal, provincial, and non-profit levels that align with your business goals. Review application requirements and deadlines to ensure eligibility and preparedness.

2. Develop a Detailed Proposal

  • Clearly outline your project’s purpose, scope, timeline, and budget. Highlight how your project aligns with grant priorities, such as sustainability or regional connectivity. Use supporting data and metrics to strengthen your case.

3. Show Financial Stability

  • Provide comprehensive financial documentation, such as income statements, balance sheets, or proof of matching funds. This demonstrates your ability to manage and execute the project successfully.

4. Align with Grant Priorities

  • Tailor your application to emphasize how your project supports the grant’s goals, such as improving logistics, enhancing sustainability, or boosting local economic activity.

5. Engage Early and Follow Up

  • Begin the application process early to address potential issues. Communicate with grant administrators for clarification and feedback. After submission, follow up to ensure your application is reviewed.

Alternatives to Grants for Transportation Businesses in Canada

Business Loans & Credit for Transportation Businesses

  • Business Development Bank of Canada (BDC): Offers tailored financing solutions for transportation businesses, including loans for fleet upgrades, infrastructure improvements, and working capital. BDC also provides advisory services to support business growth.
  • Export Development Canada (EDC): Provides loans and credit solutions for transportation companies targeting international markets, helping them enhance global logistics operations.
  • Lines of Credit: Flexible credit options from banks help transportation businesses manage cash flow, particularly during periods of high operational demand.

Startup Programs for Transportation Businesses

  • Futurpreneur Canada: Supports transportation startups with financing, mentorship, and business resources to help entrepreneurs launch and grow their businesses.
  • Regional Transportation Programs: Many provinces offer startup-focused initiatives that provide funding, training, and networking opportunities to boost local transportation ventures.
  • Innovation Hubs: Regional hubs often include programs tailored to transportation startups, offering access to funding, mentorship, and collaborative networks.

Equity Investment Programs for Transportation Businesses

  • Angel Investors: Angel investors focus on high-potential transportation ventures, particularly those with innovative or sustainable solutions. Networking through industry events or investor platforms can connect businesses with these investors.
  • Impact Investors: These investors prioritize businesses that contribute to social or environmental sustainability, making them ideal for transportation businesses adopting green logistics or community-focused practices.
  • Tax Credits and Incentives: Transportation businesses can leverage tax credits for activities such as sustainability initiatives, hiring programs, or fleet modernization projects.

Transportation Industry Grants in Canada – Current Grants Available

In the sections below you’ll find a sample of the federal and provincial grants currently available for transportation businesses in Canada:

Vehicle Retrofit Program (Persons with Disabilities)

Amount:

$8,000.00

Type of Program:

Grant

Description:

This Vehicle Retrofit Program is designed to increase the mobility of persons with a disability residing in the province of New Brunswick by providing financial assistance towards the cost of supplying and installing eligible retrofitting and accessibility features for vehicles. Eligible applicants include individual residents, organizations, municipalities or private companies providing transportation services to persons with a disability.

More Info

Trade Accelerator Program

Amount:

No specific amount was identified.

Type of Program:

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.

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The Roulez vert financial assistance program

Amount:

Up to $7,000 for new fully electric vehicles. Up to $5,000 for plug-in hybrid vehicles, depending on battery capacity. $600 rebate for purchasing a home charging station. Additional incentives available for businesses purchasing fleets.

Type of Program:

Rebate, Grant

Description:

The Roulez vert financial assistance program is offered by the Gouvernement du Québec to encourage the acquisition of electric vehicles and the installation of charging stations.

The Program is open to individuals, companies, organizations and municipalities in Québec.

More Info

TalentEdge Fellowship Program (TFP) Stream

Amount:

$35,000

Type of Program:

Grant

Description:

The TalentEdge Fellowship Program (TFP) stream of Ontario’s Vehicle Innovation (OVIN) program provides support for PhD graduates and post-doctoral fellows, to work on industry-driven research and development projects related to automotive and smart mobility technology such as Connected and Autonomous Vehicle (C/AV) technologies, Electric Vehicles (EV), battery technologies,

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Support measure for the purchase of electric off-road vehicles (ERVs)

Amount:

$49,500

Type of Program:

Grant, Loan, Subsidy

Description:

The support measure for the purchase of electric off-road vehicles (VHRE) helps support the electrification of the off-road vehicle fleet of tourist organizations by granting financial assistance.

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Shipbuilding and Ship Repair Industry Tax Credit

Amount:

$5,250

Type of Program:

Tax Credit

Description:

The shipbuilding and ship repair industry tax credit is a tax credit for eligible employers that employ apprentices in the B.C. shipbuilding and ship repair industry.

More Info

Roll Green program

Amount:

No specific amount was identified. Consult the program URL for detailed one.

Type of Program:

Grant, Subsidy

Description:

The Financial Assistance Program for National Leisure Organizations (PAFONL) constitutes a financial lever which aims to support the actions of national leisure organizations (ONL) which participate in the development of leisure in Quebec.

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Rail Climate Change Adaptation Program

Amount:

$300,000.00

Type of Program:

Grant

Description:

Transport Canada’s Rail Climate Change Adaptation Program was created to help Canada’s rail sector research, develop, and implement innovative technologies, tools, and approaches to address these risks.

More Info

Passenger Transportation Accessibility Program (PTAP): Wheelchair Accessible Vehicle (WAV) Maintenance and Operation Rebate

Amount:

No fixed amount

Type of Program:

Rebate

Description:

The Passenger Transportation Accessibility Program (PTAP) supports the taxi industry in delivering improved services and experiences for the accessibility community by providing funding and training to expand availability of wheelchair accessible taxis.

The WAV Maintenance and Operation Rebate provides rebates for applicants for the added maintenance costs associated with operating a WAV taxi compared to operating a non-accessible taxi.

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Passenger Transportation Accessibility Program (PTAP): Wheelchair Accessible Vehicle (WAV) Acquisition and Conversion Rebate

Amount:

No fixed amount

Type of Program:

Rebate

Description:

The Passenger Transportation Accessibility Program (PTAP) supports the taxi industry in delivering improved services and experiences for the accessibility community by providing funding and training to expand availability of wheelchair accessible taxis.

The Acquisition and Conversion Funding Stream will subsidize applicants for the added costs associated with purchasing or converting a WAV taxi compared to a non-accessible taxi by providing rebates for eligible costs.

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LiONʼS LAIR

Amount:

No fixed amount

Type of Program:

Competition

Description:

LiONʼS LAIR is an annual competition presented by Innovation Factory in partnership with the City of Hamilton Economic Development office, which brings together the entrepreneurship and innovation community in Hamilton. The competition gives up-and-coming entrepreneurs the opportunity to pitch their business to a panel of Hamilton’s top business experts for a chance to win cash prizes.

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Invest Ontario Advanced Manufacturing

Amount:

No fixed amount

Type of Program:

Investment

Description:

Experience innovation in Ontario’s manufacturing sector. Join a vibrant community of industry leaders who are charting the future of production in Ontario. Here, you will find access to state-of-the-art technologies and tailored support, all designed to help your business thrive.

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Integrated Marketplace: Heavy-Duty Low and Zero Emission Vehicles Trucking Project (HDZEV)

Amount:

No fixed amount

Type of Program:

Accelerator

Description:

The Heavy-Duty Low and Zero Emission Vehicles (HDZEV) pilot test project is working to de-risk and accelerate the adoption of zero and low emission trucks for operators throughout the province.

Operating with funding from Transport Canada, the Province of British Columbia’s Ministry of Transportation and Infrastructure (MOTI) and Prince Rupert Port Authority, the project is delivered through Innovate BC’s Integrated Marketplace program in collaboration with the Prince Rupert Port Authority and other regional stakeholders.

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HardTech Pitch Competition

Amount:

$50,000.00

Type of Program:

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!

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Green Transportation:Direct current fast charging station shutter

Amount:

$150,000.00

Type of Program:

Grant

Description:

Transportez Vert is a program that aims to support the reduction of petroleum products and greenhouse gas (GHG) emissions and to increase energy efficiency in the road transportation sector. Its Direct Current Fast Charging (DCFC) Stations component provides financial assistance for the acquisition and installation of DC fast charging stations to promote the electrification of vehicle fleets.

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Green Transportation: Energy Management Support

Amount:

$150,000.00

Type of Program:

Grant

Description:

Energy management in vehicle fleets allows the profitability of different actions that reduce fuel consumption and GHG emissions to be assessed, their implementation to be planned and their monitoring to be carried out.

This component provides financial assistance to pay for the services of a coach who can help fleet managers with energy management, i.e. to:

carry out an assessment of the energy consumption and GHG emissions of their vehicle fleet;
implement measures ;
monitor results to reduce fuel consumption and GHG emissions.

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Green Transportation: Eco-driving Training

Amount:

$30,000.00

Type of Program:

Grant

Description:

Eco-driving allows for a reduction in vehicle operating and maintenance costs, an improvement in road safety and a reduction in the environmental footprint of vehicles. Eco-driving training provides drivers of light or heavy road vehicles with the tools they need to:

understand the factors that explain the fuel consumption of a road vehicle;
acquire new knowledge to adopt the most appropriate behaviors to reduce energy consumption;
adopt more energy-efficient and safety-friendly driving

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Funding for businesses in southern Ontario

Amount:

$10,000,000.00

Type of Program:

Loan

Description:

FedDev Ontario is investing in people, potential, and possibilities. We want to help you grow so you can reach your potential and unlock new possibilities.

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Financial assistance for the electrification of interurban and private transport (Ecobus)

Amount:

$100,000.00

Type of Program:

Grant, Rebate

Description:

This program is designed to participate in the fight against climate change by reducing greenhouse gas (GHG) emissions from the private passenger transport industry by more than 33,000 tonnes of GHG by March 31, 2025, and to promote the use of buses, minibuses, vans and fuel cell vehicles equipped with technologies whose effectiveness has been demonstrated in terms of GHG reduction.

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Ecotrucking Program

Amount:

$125,000

Type of Program:

Grant

Description:

This component is designed to increase the penetration rate of technologies that have demonstrated their effectiveness in reducing greenhouse gas (GHG) emissions among companies in the road freight and service vehicle transportation sector.

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Cluster Support Programs (formerly Supercluster Support Programs)

Amount:

no fixed amount

Type of Program:

Grant

Description:

Innovation, Science and Economic Development Canada launched the Global Innovation Clusters to support business-led innovation and large-scale collaboration among industry leaders, small and medium enterprises (SMEs) and post‑secondary institutions, to develop and scale high-potential technologies in advanced manufacturing, agri‑food, clean technology, digital technology, health, bioscience and clean resources, infrastructure and transportation.
Cluster support programs:
1. Advanced manufacturing (Funded collaborative R&D in support of Canada’s Next Generation Manufacturing cluster. automation and robotics; machine vision; inspection and sensors; simulations and modelling; additive manufacturing; and advanced materials manufacturing);
2. Digital Health and Geospatial Analytics (Funded collaborative R&D in support of Canada’s Digital Technology Supercluster in the areas of: Artificial intelligence and digital enablement for health – using artificial intelligence and digital technologies to improve healthcare delivery and connect it to real-world, evidence-based clinical research; and Geospatial Analytics – using digital geospatial technologies to solve compelling challenges in areas such as agriculture, forestry, environmental monitoring, transportation, and clean energy);
3. Ocean (Funded collaborative R&D in support of Canada’s Ocean Supercluster in the areas of: bio assets; intelligent ocean assets; coastal resilience; and pollution remediation);
4. Sustainable Protein Production (Funded collaborative R&D in support of Canada’s Protein Industries Supercluster in the areas of: genetics and genomics; pre‑breeding crop development and plant technologies; microalgal and macroalgal protein; microbial communities; processing and ingredients; food safety, traceability and sustainability);
5. Artificial Intelligence (AI) for Logistics (Funded collaborative R&D in support of Canada’s AI- Powered Supply Chains Supercluster (Scale AI) in the areas of: transportation and warehousing; condition of infrastructure and goods; cybersecurity for logistics; and Canadian logistics AI‑powered modelling.

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Call for mobilizing projects on the development of tomorrow’s transport technologies

Amount:

$ 10,000,000 ​

Type of Program:

Grant, Subsidy

Description:

This call for projects is aimed at Quebec companies that have a design or demonstration project in partnership or in collaboration with other companies and public research centers in the aerospace sector.

This call is part of the Innovation program, section 2 – Support for mobilizing projects.

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Business Development Incentives: City of Saskatoon Business Development Incentive

Amount:

No fixed amount

Type of Program:

Tax Credit

Description:

Administered by SREDA, the City of Saskatoon established tax abatement incentives to encourage the attraction and expansion of businesses to facilitate investment and long-term job creation.
These Business Development Incentives may include exemptions or reductions of city taxes or fees, waiving of utility deposits and down payments on land, and exemptions or reductions of prepaid servicing levies.

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BDC Industrial, Clean and Energy Technology (ICE) Venture Fund

Amount:

No fixed amount

Type of Program:

Investment

Description:

We operate on the frontier of innovation where tomorrow’s technologies are born. With deep expertise and agility, we manage $300 million in capital — investing in Canada’s most innovative technology companies, firms that are redefining how the world works by bringing digital transformation to a wide range of industries. We’re often the first institutional investor in, because we recognize opportunity when we see it.

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BDC Growth Venture Fund

Amount:

No fixed amount

Type of Program:

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.

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AVIN Ventures at Communitech

Amount:

$50,000

Type of Program:

Grant

Description:

This program provides Ontario-based startups and scale-ups using HD mapping technologies up to $50,000 in funding with a 1:1.5 match thanks to the Autonomous Vehicle Integration Network (AVIN).
There are 3 application streams:
1. Self-Healing Maps,
2. Smart Cities and Mobility,
3. Open call for other project applications.

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Aviation Infrastructure Funding

Amount:

$35,000

Type of Program:

Grant

Description:

The BC Air Access Program provides cost-sharing opportunities for infrastructure, environmental and in select cases, airport master plans – all of which must be at eligible, public-use facilities.

Examples of projects that are eligible for BCAAP funding:
Airside operating area projects such as those related to aprons and runways
Avionics such as hazard beacons and runway lighting
Air terminal building enhancements
Environmental projects such as the preparation of a greenhouse gas inventory (baselining)
Groundside projects such as parking facility enhancements
Airport master plans for small airports

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Alberta Indigenous Opportunities Corporation — Loan Guarantees

Amount:

$250,000,000.00

Type of Program:

Loan Guarantee

Description:

AIOC’s Loan guarantees help Indigenous groups access capital that might otherwise be out of reach. With a loan guarantee in place, First Nation and Métis groups can get loans easier, and at preferred rates – allowing them to become equity owners in large-scale revenue-creating projects.

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Alberta Indigenous Opportunities Corporation — Capacity Support

Amount:

No fixed amount

Type of Program:

Grant

Description:

The capacity grant program is designed to be closely aligned with AIOC’s Loan Guarantee Investment Program. AIOC has a pool of discretionary funds available to help provide access to third-party professional services, expertise and support that can build their capacity to participate in qualified project opportunities. This capacity support assists with deal development, and may include providing legal, technical and economic expertise to Indigenous communities who want to move toward being long-term strategic partners with industry and the Alberta government.

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Maurice

About the author

Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Canada to identify and maximize funding to grow their business.

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