Regional Business Grants in Canada: Unlocking Opportunities for Local Entrepreneurs

In addition to nationwide grants, each province and territory in Canada offers unique programs designed to boost local economies. This means that by exploring your specific region, you may find grants that align closely with your business’s goals and needs.

In this guide we cover levels of government that provide grants funding to businesses, as well as what they typically provide funding for.

Key Takeaways

  • Regional business grants in Canada are offered by federal, provincial, and municipal governments and support activities like expansion, innovation, sustainability, and job creation, .
  • Many grants target specific industries or goals, such as exporting, R&D, clean energy, or regional economic development.
  • Grant programs aim to strengthen local economies, attract investment, drive innovation, and create jobs for communities.
  • Grants have strict eligibility criteria and competitive application processes, requiring alignment with government priorities and measurable outcomes.

Federal Government Business Grants

Federal government grants in Canada provide financial support to businesses across various industries. These grants are often competitive, aiming to stimulate economic growth, innovation, and job creation. They are an excellent opportunity for your business to secure funding without the need to repay the money.

Key Federal Government Agencies That Fund Businesses

The Canadian federal government has a number of ministries and agencies that provide grants, loans, and other types of funding to Canadian small businesses. Here are the main ones:

  • Innovation, Science and Economic Development Canada (ISED) – Manages several federal programs to support innovation, digital transformation, and economic growth, including the Strategic Innovation Fund and Innovative Solutions Canada, which help businesses scale, conduct R&D, and commercialize new technologies.
  • National Research Council of Canada (NRC) – Provides funding and advisory services to help small and medium-sized businesses undertake R&D and bring new products to market, with a strong focus on technological innovation and commercialization.
  • Export Development Canada (EDC) – Supports Canadian businesses looking to expand internationally by providing financing, insurance, bonding, and advisory services to help mitigate risks and secure deals in global markets.
  • Business Development Bank of Canada (BDC) – Offers financing, growth capital, advisory services, and venture capital for SMEs across Canada, with specialized support for digital transformation, environmental sustainability, and women-led businesses.
  • Indigenous Services Canada (ISC) – Provides funding and resources through programs like the Aboriginal Entrepreneurship Program, which supports Indigenous-owned businesses by improving access to capital and offering business advisory services.
  • Agriculture and Agri-Food Canada (AAFC) – Supports Canada’s agriculture and agri-food sector through funding, research, and policy initiatives, including programs like the Canadian Agricultural Partnership (CAP) for innovation and sustainability, and risk management programs like AgriInvest and AgriStability to help farmers manage income fluctuations.

Examples of Popular Federal Government Grant Programs for Business

  1. CanExport SMEs provides funding to help small and medium-sized Canadian businesses expand into international markets by covering costs related to market research, trade shows, and other export development activities.
  2. Strategic Innovation Fund (SIF) offers funding for large-scale, transformative projects across various sectors, focusing on projects that drive innovation, support growth, and create high-quality jobs in Canada.
  3. Aboriginal Entrepreneurship Program supports Indigenous entrepreneurs and businesses through funding and advisory services aimed at improving access to capital, building capacity, and fostering economic development in Indigenous communities.
  4. Black Entrepreneur Program provides funding, mentorship, and business development support to Black Canadian entrepreneurs and business owners to help them grow their businesses and overcome systemic barriers.
  5. Canada Council for the Arts offers a variety of grants and funding programs to support Canadian artists, organizations, and arts projects across disciplines, with a focus on fostering creativity, innovation, and access to the arts.

These federal programs are designed to empower you to reach new markets, invest in R&D, and scale your business. And there are hundreds more federal programs targeted toward specific industries, activities, and demographic groups.

Federal Government Regional Development Grants

The federal government has a number of “regional development agencies” (RDAs) that focus on specific regions of Canada. Here are the six federal RDAs in Canada:

  • Atlantic Canada Opportunities Agency (ACOA) – Drives economic growth, innovation, and job creation across the Atlantic provinces (New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island) through funding programs aimed at strengthening local economies and supporting SMEs.
  • Canada Economic Development for Quebec Regions (CED-Q) – Provides funding and support for small to medium-sized enterprises (SMEs) in Quebec, focusing on innovation, regional economic growth, and community revitalization through grants, loans, and other financial programs.
  • Federal Economic Development Agency for Northern Ontario (FedNor) – Promotes economic development, business growth, and job creation in Northern Ontario by funding projects related to business expansion, technology adoption, and community development, especially in remote and rural areas.
  • Federal Economic Development Agency for Southern Ontario (FedDev Ontario) – Supports SMEs in Southern Ontario with funding for innovation, productivity improvements, and business scale-up initiatives, along with programs to foster regional economic development and community resilience.
  • Prairies Economic Development Canada (PrairiesCan) – Provides financial support and services to businesses and communities in Alberta, Saskatchewan, and Manitoba, focusing on innovation, economic diversification, and business scale-up, with a particular emphasis on rural and Indigenous communities.
  • Pacific Economic Development Canada (PacifiCan) – Facilitates economic growth in British Columbia by funding initiatives that enhance business productivity, innovation, and competitiveness, including support for technology adoption, entrepreneurship, and export development.

Provincial/Territorial Government Business Grants

Provincial government grants in Canada support economic growth, job creation, and innovation by addressing local economic needs, such as fostering small businesses, enhancing workforce skills, and promoting sustainability. By funding businesses, provinces aim to stimulate local economies, improve competitiveness, and retain talent, which contributes to long-term economic health.

These grants are often sector-specific, reflecting each province’s economic strengths and strategic goals. For example, Ontario may focus on manufacturing and technology, Alberta on energy and agriculture, and British Columbia on clean tech and tourism. This targeted approach helps develop key industries, aligning funding with local priorities and industry trends.

Provincial grants can be province-wide or regional. Province-wide grants are available to businesses across the province, while regional grants are tailored to specific areas, often targeting rural or economically disadvantaged regions. Regional grants address local challenges, like supporting economic diversification or providing resources to remote communities, allowing provinces to balance broad development goals with targeted local support.

Examples of Popular Provincial Government Grant Programs for Business

  1. Alberta Export Expansion Program provides funding to Alberta businesses to help cover costs related to exporting, such as international marketing, trade shows, and travel, with the goal of expanding Alberta products and services into global markets.
  2. Innovate BC Ignite offers funding for collaborative research and development projects in British Columbia, focusing on innovative solutions in natural resources, applied sciences, and engineering sectors, with the aim of accelerating commercialization.
  3. Creative Saskatchewan supports creative industries in Saskatchewan, including film, music, publishing, and visual arts, by providing grants for production, marketing, and distribution, to boost industry growth and market reach.
  4. Racialized and Indigenous Supports for Entrepreneurs (R.A.I.S.E) is a program in Ontario that offers funding, mentorship, and business training for racialized and Indigenous entrepreneurs, aiming to reduce barriers and support business growth.
  5. JEDI Aboriginal Development Fund provides funding and business support for Indigenous entrepreneurs in New Brunswick, focusing on economic development, capacity building, and job creation within Indigenous communities.
  6. Ontario Summer Company Program offers grants, mentorship, and training for students in Ontario aged 15-29 to start and run their own summer businesses, encouraging youth entrepreneurship and skill development.

Explore Top Business Grants in Each Province & Territory

  • Alberta
  • British Columbia
  • Manitoba
  • New Brunswick
  • Newfoundland & Labrador
  • Northwest Territories
  • Nova Scotia
  • Nunavut
  • Ontario
  • Prince Edward Island
  • Quebec
  • Saskatchewan
  • Yukon

Northern Canada Business Grants

Specialized Northern programs offer tailored support for businesses willing to invest in the Yukon, Northwest Territories, or Nunavut. Here are the main federal and provincial government agencies that support businesses in Canada’s North:

Canadian Northern Economic Development Agency (CanNor)

CanNor is the primary federal agency focused on promoting economic development in Canada’s three northern territories, with a mandate to foster economic growth, diversification, and resilience in Northern communities,

CanNor provides funding and support for projects that contribute to business development, infrastructure, workforce skills, and community capacity building. The agency also focuses on advancing Indigenous economic development through programs that specifically support Indigenous businesses and communities in the North.

Yukon Department of Economic Development

Yukon’s Department of Economic Development is the territorial government agency responsible for promoting economic diversification, supporting investment attraction, and helping local businesses expand.

The agency offers funding, research, and support services to key sectors such as tourism, mining, and renewable energy, aiming to create a resilient and sustainable economy. The department also works to build partnerships with Indigenous communities and other stakeholders to advance economic opportunities across the territory.

Prosper NWT

Prosper NWT (formerly Northwest Territories Business Development and Investment Corporation) is a Crown corporation of the Government of the Northwest Territories, dedicated to supporting entrepreneurship and economic growth within the territory.

Prosper NWT provides financing, business support services, and training to help local businesses succeed and expand, particularly in small and remote communities. Its mandate includes promoting economic self-sufficiency, reducing barriers to capital, and fostering a diversified economy across the Northwest Territories. The agency also operates business service centres to provide resources and advisory support for new and existing businesses.

Nunavut Department of Economic Development and Transportation

The Department of Economic Development and Transportation (EDT) within the Government of Nunavut is responsible for promoting economic growth, business development, and community infrastructure across Nunavut.

EDT supports a range of sectors, including fisheries, arts and crafts, tourism, and transportation, aiming to create sustainable economic opportunities for Nunavummiut. The department also focuses on building capacity within communities, supporting Inuit-owned businesses, and fostering partnerships to strengthen Nunavut’s economy. Through its programs and initiatives, EDT addresses the unique challenges of the territory, including remote locations, high costs, and limited infrastructure.

Municipal Business Grants

Municipal business grants are funding programs offered by local governments (cities, towns, or regional municipalities) to support businesses within their jurisdiction.

These grants typically provide non-repayable financial assistance for specific business activities, such as starting a new venture, expanding operations, investing in sustainability, creating jobs, or revitalizing local neighbourhoods.

Municipal grants may target industries or projects that align with local economic development priorities, such as tourism, innovation, or small business growth.

Why Do Municipalities Fund Businesses?

Municipalities fund businesses to strengthen their local economies, attract investment, and improve the quality of life for residents. By providing grants, municipalities aim to:

  1. Encourage Job Creation: Supporting businesses enables the creation of local employment opportunities, helping to reduce unemployment and boost household incomes.
  2. Stimulate Economic Growth: Funding programs help businesses expand, innovate, and succeed, which contributes to a stronger, more diversified local economy.
  3. Enhance Competitiveness: By offering grants, municipalities can attract new businesses, retain existing ones, and create a more competitive business environment within the region.
  4. Support Targeted Development: Grants can be used to achieve specific goals such as revitalizing downtown areas, encouraging sustainable practices, or fostering innovation in key sectors like technology or tourism.
  5. Improve Tax Revenues: Thriving businesses generate higher tax revenues for municipalities through property, sales, and business taxes, which can be reinvested in public services and infrastructure.

What Do Municipalities Aim to Achieve by Funding Businesses?

Municipalities aim to foster a thriving business ecosystem that contributes to their long-term goals, such as:

  • Economic Development: Strengthening the local economy by supporting businesses that drive investment, attract talent, and stimulate commerce.
  • Community Revitalization: Revitalizing neighborhoods by supporting local businesses, enhancing retail districts, or redeveloping underutilized spaces.
  • Sustainability Goals: Promoting environmentally friendly practices, such as energy efficiency upgrades or green building initiatives, that align with local climate action plans.
  • Social Equity: Supporting underrepresented entrepreneurs, such as women, Indigenous Peoples, or newcomers, to create a more inclusive and diverse business environment.

By funding businesses, municipalities create a win-win situation: they empower entrepreneurs to succeed while achieving broader economic, social, and environmental objectives for the community.


Explore Business Grants for Top Municipalities in Canada

  • Toronto
  • Montreal
  • Vancouver
  • Calgary
  • Edmonton
  • Ottawa
  • Winnipeg
  • Quebec City
  • Hamilton
  • Kitchener-Waterloo

How to Maximize Regional Business Grants

To make the most of regional business grants, consider combining different types of funding, organizing your application efforts with a calendar, fostering relationships with economic development officers, and paying attention to matching fund requirements.

1. Stack Grants (And Other Types of Funding)

Combining different grants can enhance your financial resources. Look for opportunities to supplement regional grants with federal and provincial options.

Meet with local business network groups to learn about lesser-known funding opportunities. Speaking to advisors can reveal overlapping grants you’re eligible for, maximizing your funding potential.

Prepare a financial strategy that ensures all grants complement each other. Be aware of each grant’s conditions to avoid conflicts. Prioritize which grants to apply for based on timelines and relevance to your business objectives.

2. Create a Grants/Funding Calendar

Organizing your time is crucial. Develop a calendar that highlights important grant deadlines. Include key dates for application submissions, follow-up communications, and reporting obligations.

Allocate time for gathering necessary documentation and writing your applications. In doing so, avoid last-minute scrambles.

Set reminders for each grant stage in your calendar. Regular updates will ensure you’re prepared and can adjust for any changes in deadlines or requirements. This structured approach helps you stay on top of multiple applications.

3. Get to Know Regional Economic Development Officers

Reach out to regional economic development officers. These professionals can provide invaluable insights and guidance on available grants and application processes.

Schedule informational meetings to learn about specific criteria that can strengthen your applications. Building relationships with these officers can also give you access to exclusive funding news or emerging opportunities.

They often can connect you to other local resources, helping you build a network of support. Be proactive and maintain open lines of communication to fully leverage their expertise.

4. Remember Matching Fund Requirements for Some Grant Programs

Some grants require businesses to match a certain percentage of the funding. Understanding these requirements is crucial for budgeting and financial planning.

Calculate your available funds accurately to ensure you can meet any matching conditions. Failure to do so might disqualify you from receiving the grant.

List all grants specifying matching requirements alongside potential match sources. Prioritize the most viable options to sustain your business’s growth.

Thoroughly review grant conditions to prevent any misunderstandings. Adapting your financial strategies to align with these conditions will set your business up for success.

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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