Ontario Government Business Loans: Financing Options for Startups and Small Businesses
Looking for flexible financing to support your business in Ontario? This article outlines business loans offered or supported by the Ontario provincial government, including what types of loans are available, how they can be used, and what it takes to qualify.
Whether you’re starting a business, expanding operations, or investing in growth, this guide will help you explore government-backed financing options available in Ontario.
✅ What is a Government-Backed Business Loan?
A government-backed business loan is financing offered or supported by a public-sector body. These loans are designed to make capital more accessible to small and medium-sized businesses by offering:
- Lower interest rates
- Longer or more flexible repayment terms
- Reduced collateral requirements
- Support for riskier or underserved ventures
Unlike grants, these funds must be repaid — but their terms often make them more attractive than traditional bank loans, particularly for startups and growing businesses.
✅ Types of Provincial Government Business Loans in Ontario
Ontario’s provincial loan programs cover a range of business needs and stages. The most common types include:
◾ Startup Loans
Designed for early-stage businesses that need funding to cover launch expenses such as working capital, inventory, marketing, or equipment.
◾ Expansion Loans
For businesses looking to scale, enter new markets, increase capacity, or grow their workforce.
◾ Capital Asset Loans
Support for purchasing machinery, vehicles, buildings, or other fixed assets needed for business operations or expansion.
◾ Working Capital Loans
Short- or medium-term loans to help manage cash flow, cover payroll, or address seasonal fluctuations in revenue.
◾ Sector-Specific Loans
Some provincial loan programs target priority sectors in Ontario such as advanced manufacturing, clean technology, agri-food, life sciences, digital media, or tourism.
✅ How to Qualify for a Government Business Loan in Ontario
Eligibility criteria vary depending on the loan program, but in general, you will need to:
- Operate or plan to operate a registered business in Ontario
- Be a Canadian citizen or permanent resident
- Submit a detailed business plan with financial projections
- Demonstrate your business’s ability to repay the loan
- Align with the loan program’s focus, such as innovation, job creation, or rural development
Some loan programs may require collateral, a personal guarantee, or co-investment, especially for larger amounts or higher-risk ventures.
✅ Alternatives to Provincial Government Loans in Ontario
If a loan doesn’t suit your needs — or you’re looking for additional support — consider these alternatives:
◾ Grants
Non-repayable funding is available for activities such as hiring, training, R&D, export development, and clean tech adoption.
◾ Wage Subsidies
Programs that offset payroll costs, especially for hiring students, youth, newcomers, or other equity-deserving groups.
◾ Tax Credits
Ontario offers several targeted credits for eligible business activities, including the Ontario Innovation Tax Credit and incentives for digital media, film production, and apprenticeships.
◾ Equity Investment Programs
Startups and growth-stage companies may access equity capital through Ontario-based angel investor networks, venture capital funds, or government-supported innovation hubs.
✅ Ontario Government Business Loans: Current Loans Available
$200,000
Loan
Description:
The Upgrade to Building Code Loan offers financial support for interior improvements to your building, including upgrades to plumbing, electrical systems, HVAC, mechanical systems, roofing, fire protection systems, and other work required to meet Building Code standards.
$450,000
Loan
Description:
The Start-up and Office Tenant Attraction (SOTA) Program is intended to provide
low-interest Loans or Forgivable Loans that will facilitate the undertaking of eligible leasehold
improvements to office space by property owners or authorized tenants in order to support the
creation of new office space and improve the marketability and attractiveness of existing office
space. This Program will serve as a tool to reduce office vacancy rates in Downtown Hamilton
and other eligible commercial areas and serve as a means of attracting new and expanding office
uses and businesses to Hamilton.
$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.
No fixed amount
Loan
Description:
Since its inception in 2012, the Social Impact Fund has unlocked the Foundation’s assets in order to create positive change in the community by providing loans to social enterprises and affordable housing projects.
no fixed amount
Grant, Loan
Description:
The Regional Development Program – Business Projects provides support for projects and investments to businesses and not-for-profit organizations for economic development in eastern and southwestern Ontario.
$5,000,000.00
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. It will provide investments in:
1. Capital equipment
2. Technology adoption
3. Skills development
The fund supports projects that:
1. Create jobs and build talent
2. Attract and encourage private sector investment
3. Help companies to adopt technologies that improve their competitiveness
4. Lead to business growth and broad positive economic impacts
5. Encourage innovation, collaboration, and cluster development
$5,000,000.00
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. It will provide investments in capital equipment, technology adoption and skills development.
$5,000,000
Grant, Loan
Description:
The Ontario Together Trade Fund (OTTF) provides financial support to help businesses near-term investments so they can serve more interprovincial customers, develop new markets and re-shore critical supply chains in the face of U.S. tariffs.
Projects must address the impacts of U.S. trade disruptions and align with Ontario’s key economic priorities, including:
Trade diversity:
– Diversifying sales portfolios: Expanding market reach to new markets, with a focus on interprovincial trade.
Trade security:
– Enhancing competitiveness: Increasing manufacturing capacity and capabilities and increasing profitability through investments in advanced technology and innovative processes.
– Contributing to regional and sectoral ecosystems: Strengthening Ontario’s supply chains through reshoring and efforts to procure more equipment and supplies from Ontario and Canada.
– Creating and or retaining jobs
$5,000,000.00
Grant, Loan
Description:
The Investment – Locate Stream provides financial support to businesses locating new business operations to Northern Ontario.
$1,000,000.00
Grant, Loan
Description:
The Investment – Grow Stream provides financial support to businesses expanding existing operations in Northern Ontario.
$2,500,000
Loan
Description:
The High-Rise Retrofit Improvement Support Program (Hi-RIS) program makes low-cost financing available for owners of residential apartment buildings built before 1990 of three or more storeys to make improvements that reduce energy and water consumption.
Hi-RIS is made possible through an amendment to the provincial regulation regarding local improvement charges, which are municipal financing tools used to help cover the costs of local infrastructure improvements, such as streetlights or sidewalks. The amendment allows municipalities to advance funding to consenting private property owners to cover the cost of building improvements that improve energy efficiency and water conservation.
$50,000
Loan
Description:
The Hamilton Community Heritage Fund will be the source of funding for this loan program. The purpose of the loan is to act as a catalyst for stimulating the rejuvenation of designated heritage properties within the City of Hamilton.
Acting as a lender, the City provides financial support for the program and ensures that conservation and development activity arising from the program within the City is consistent with sound principles of managing and protecting designated heritage properties.
$3,000,000
Grant, Loan
Description:
The Forest Sector Investment and Innovation Program (FSIIP) – Business Projects program provides funding for strategic investments in the forest sector to for-profit manufacturers and processors of wood and forest biomass across Ontario.
Strategic investments must improve productivity and innovation, enhance competitiveness, support new market access, provide benefits to Ontario’s broader forest sector and strengthen regional economies.
$400,000
Loan
Description:
The Ontario Creates Film Fund – Production streams (Drama and Documentary) are intended to increase the level of domestic feature film production in Ontario. The Film Fund provides support to Ontario producers for feature film projects in the final stages of production financing. The prime objectives of the fund are to: – increase investment and jobs in Ontario by Ontario-based feature film production companies; – increase the number of high quality, original feature films produced in Ontario by Ontario-based production companies; and – assist in capitalizing Ontario-based feature film production companies.
$25,000
Loan
Description:
The Ontario Creates Film Fund – Development Stream is intended to support development activities that lead to the production of domestic feature film in Ontario. The Film Fund provides support to Ontario producers for all stages of development activities.
$50,000
Loan
Description:
The Façade Improvement Loan offers financial support for enhancing building exteriors, covering upgrades to windows, doors, brick repairs, painting, lighting, and signage attached to the façade.
$400,000
Loan
Description:
The ERASE Commercial District Remediation Loan (ECDRL) Program provides low-interest Loans which are intended to overcome barriers owners may face obtaining traditional financing for costs required to remediate historical environmental contamination on brownfield sites in support of their redevelopment/reuse. Specifically, this Program is intended to work in concert with broader efforts to support the revitalization of strategic commercial districts and corridors, including those programs and initiatives established under the Revitalizing Hamilton’s Commercial Districts Community Improvement Plan.
$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.
$4,000,000
Loan
Description:
The Downtown and Barton/Kenilworth Housing Opportunities Program (the Program) is
intended to provide financial assistance in the form of a low-interest Loan to promote the
development of multiple dwelling units that will create new housing opportunities and support
robust local commercial district populations that add vibrancy and support demand for local
commercial businesses/services. Activities supported by this program include:
– The creation of at least 10 new dwelling units through the development of a multiple
dwelling on vacant land, surface parking areas or the redevelopment of existing
buildings;
– A building addition containing at least 10 new dwelling units; and/or,
– The conversion of existing non-residential space into housing consisting of at least 10
new dwelling units
No fixed amount
Loan
Description:
The Additional Residential Unit (ARU) Forgivable Loans offer financial assistance to property owners to help offset the costs of creating new detached additional residential units.
No fixed amount
Grant, Loan
Description:
A Community Improvement Project Area (CIPA) is a designated zone within a municipality aimed at strengthening communities and business districts. It provides financial incentives and loans to help businesses and property owners make improvements to their buildings, fostering growth and development in the area. Ontario’s Planning Act defines these areas as locations where community improvement is deemed necessary by the local council.
$600,000
Grant, Loan
Description:
The Commercial District Housing Opportunities Program (the Program) is intended to provide
financial assistance in the form of a low-interest Loan and Grant to promote the improvement
or development of dwelling units that will create new/improved housing opportunities support
robust local commercial district populations that add vibrancy and support demand for local
commercial businesses/services. Activities supported by this program include:
– Converting existing non-residential spaces into dwelling units where permitted in accordance with the applicable City zoning by-law;
– Undertaking renovations to existing dwelling units;
– Creation of new dwelling units, including accessory Dwelling Units, via building additions or new detached accessory buildings, including laneway housing; and/or
– Creation of new dwelling units through development of vacant land, surface parking lots or redevelopment of existing buildings.
No fixed amount
Loan
Description:
The Additional Residential Unit (ARU) Loan offers financial assistance to property owners to help offset the costs of creating new additional residential units.
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