Get Funding with Small Business Grants in Canada
Securing funding is one of the biggest challenges small business owners in Canada face when launching a new venture or planning to expand. While loans and private investment are options, small business grants remain highly sought after because they provide non-repayable funds to help businesses grow.
The good news? More funding opportunities are available than ever—if you know where to look.
We’re diving into the top government-run initiatives and grant programs available in Canada. We’ll cover both federal and provincial opportunities and share essential tips for applying successfully. Plus, we’ll introduce other financing options when grants don’t quite cover everything. Whether you’re just starting out or ready to scale, we’ll help you find the perfect funding for your business.
Key Takeaways:
- Canada offers a wide range of federal, provincial, and industry-specific grants for small businesses.
- Programs like the Canada Small Business Financing Program (CSBFP) and CanExport provide accessible funding support.
- Strategic planning improves your chances of securing a grant.
- City-level funding opportunities are growing across Canada.
- When grants aren’t enough, fast business financing options are available through Merchant Growth.
Types of Grants Available
Grants are a valuable resource for businesses at every stage of growth, but not all grants are created equal. Each type is tailored to meet different needs, whether you’re just getting started or looking to scale. Let’s break down the various options available so you can find the right fit for your business journey.
| Grant Type | Description |
|---|---|
| General Support & Start-Up Grants | Help new businesses with initial costs like training, equipment, or marketing. (Example: Starter Company Plus Program in Ontario.) |
| Grants for Innovation & R&D | Fund research, technology development, and commercialization projects. (Example: Industrial Research Assistance Program (IRAP).) |
| Grants for Exports & International Expansion | Support businesses entering international markets. (Example: CanExport SMEs Program.) |
| Grants for Digital Adoption | Help businesses adopt digital tools and e-commerce solutions. (Example: Canada Digital Adoption Program.) |
Each grant program has its own eligibility criteria, funding limits, and application process, so it’s important to find the right fit for your needs.
Canada Small Business Financing Program (CSBFP)
Although not a grant in the traditional sense, the Canada Small Business Financing Program (CSBFP) is a critical government initiative that helps small businesses access financing they might otherwise struggle to secure. By sharing the risk with lenders, CSBFP encourages banks and credit unions to provide loans of up to $1 million for purchasing or improving equipment, commercial property, or leasehold improvements.
Top Federal Grants for Small Business
Canada provides a range of powerful federal grants designed to fuel business growth, spark innovation, and help companies expand their reach globally. Whether you’re looking to enhance your product development, adopt new technologies, or break into international markets, these grants can offer the support you need to turn your vision into reality.
Industrial Research Assistance Program (IRAP)
The IRAP offers funding and advisory support to small and medium-sized businesses in Canada that are working on technology-driven innovations. This program is particularly beneficial for businesses that are developing new products, processes, or services in technology sectors such as engineering, electronics, or software. The amount of funding varies depending on the project size and scope, but it can cover up to 80% of eligible project costs.
Example businesses that would benefit:
- A tech startup developing a new software tool or mobile app.
- A small electronics company working on innovative hardware products.
Accessibility:
- Moderate to difficult: The process involves submitting a detailed project proposal and demonstrating the potential technological innovation. Successful applicants often have a clear innovation pathway and the ability to show a defined technological challenge.
Canada Digital Adoption Program (CDAP)
The CDAP provides small businesses with grants of up to $15,000 to help them create digital adoption strategies. This is an excellent program for businesses that are looking to increase their digital presence, enhance customer engagement through online tools, or implement new technologies. In addition, the program offers access to 0% interest loans for technology upgrades such as new software or digital infrastructure.
Example businesses that would benefit:
- A retail business seeking to establish an online store and improve its e-commerce capabilities.
- A manufacturing business looking to integrate digital tools for better supply chain management.
Accessibility:
- Moderate: The application process requires proof that the business is ready to adopt digital solutions and that the funding will lead to measurable improvements in digital capabilities.
Canada Job Grant
The Canada Job Grant helps businesses cover up to two-thirds of training costs for new or existing employees, with a maximum of $10,000 per employee. This grant is ideal for businesses looking to invest in the skill development of their workforce, whether through specialized training, certification programs, or other professional development.
Example businesses that would benefit:
- A manufacturing company seeking to train employees on new machinery or technology.
- A healthcare provider looking to fund professional development in advanced patient care or software use.
Accessibility:
- Easy to moderate: The application is relatively straightforward, requiring businesses to show how the training will benefit their employees and the company. Training must be with an eligible third-party provider.
CanExport Program
The CanExport SMEs Program provides grants of up to $50,000 to help small and medium-sized businesses expand into international markets. This grant can cover costs associated with market research, promotional activities, and attending trade shows or missions. It’s an excellent option for businesses looking to increase their exports and gain exposure in foreign markets.
Example businesses that would benefit:
- A Canadian food producer aiming to enter the European market.
- A software development company seeking to expand its client base to the U.S. or Asia.
Accessibility:
- Moderate: The application process requires businesses to demonstrate a clear strategy for international expansion and market development. Success is more likely with a solid plan and an understanding of the target market.
Strategic Innovation Fund (SIF)
The Strategic Innovation Fund (SIF) offers funding to large-scale projects that support growth in critical sectors like life sciences, clean tech, advanced manufacturing, and aerospace. This fund is designed to promote innovation and investment in transformative projects that will have long-term benefits for the Canadian economy. The funding can be substantial, often in the millions, depending on the project size and potential impact.
Example businesses that would benefit:
- A clean tech company developing breakthrough renewable energy solutions.
- A pharmaceutical company conducting advanced R&D in medical treatments.
Accessibility:
- Difficult: The SIF is highly competitive and typically requires businesses to demonstrate substantial innovation, scalability, and the potential for significant economic impact. Projects must also show alignment with Canada’s innovation priorities.
Innovation Solutions Canada (ISC)
ISC provides innovation challenges, grants, and contracts to help Canadian businesses scale their research solutions for public sector use. This program is designed to help businesses develop innovative products and services that can solve public sector problems. It’s a great option for businesses with research-based solutions that could benefit government operations.
Example businesses that would benefit:
- A cybersecurity company developing solutions to protect government data.
- A company creating software for improving healthcare delivery in the public sector.
Accessibility:
- Moderate to difficult: ISC challenges businesses to find solutions to specific government needs. It requires companies to engage with public sector issues and demonstrate the value of their innovation in a government setting.
Women Entrepreneurship Strategy (WES)
The Women Entrepreneurship Strategy (WES) supports women entrepreneurs looking to grow their businesses and expand into international markets. WES provides funding for projects that help women entrepreneurs overcome barriers to success, including mentorship, networking, and access to financing.
Example businesses that would benefit:
- A woman-owned fashion business looking to expand its brand internationally.
- A female tech entrepreneur seeking funding to scale her software development company.
Accessibility:
- Moderate: The WES is designed to support women entrepreneurs, but the application process is competitive. Businesses must clearly outline how the funding will help them scale and overcome specific challenges related to gender-based barriers in entrepreneurship.
Small Business Grants by Province
Across Canada, every province provides unique grants designed to support and nurture small businesses in their local communities. These region-specific programs not only reflect the diverse needs of businesses but also offer opportunities for growth and innovation in various sectors. Let’s explore some of the key programs available in different provinces to help you take your business to the next level.
- Ontario: Starter Company Plus Program – Grants and mentorship for entrepreneurs aged 18+.
- British Columbia: Innovate BC – Funding and resources for tech companies.
- British Columbia: Launch Online Grant Program – Funding to develop or improve e-commerce platforms.
- Alberta: Alberta Innovates – Supports R&D and innovation initiatives.
- Alberta: Digital Economy Program – Supports small businesses adopting digital solutions.
- Quebec: Programme d’aide à l’entrepreneuriat – Provides financial assistance to new entrepreneurs.
City-Level Grant Opportunities to Get Funding in Your Community
Beyond the provincial and federal programs, many cities across Canada provide their own unique set of small business grants, tax incentives, and specialized support services. These local opportunities are designed to help businesses thrive in specific communities, whether it’s through financial support, resources for innovation, or access to networking and mentorship. City-based economic development offices are often at the forefront, offering tailored solutions to help businesses grow and succeed within their unique local economies.
For example:
- Toronto: Digital Main Street grants.
- Vancouver: Small Business Grants Program (VEC).
- Calgary: Calgary Innovation Grants.
Find the Right Grant for You
Finding the right grant for your business can be a game-changer, but it often depends on your specific business type and goals. Whether you’re just starting out, running an e-commerce store, or leading a non-profit organization, there are grants tailored to your unique needs. This table highlights some of the best grant options available for different business types, helping you quickly identify the right fit and take the next step toward growth and success.
| Business Type | Relevant Grant Options |
|---|---|
| New Entrepreneurs | Starter Company Plus, Futurpreneur Canada Grants |
| Retail/E-Commerce | Launch Online Grant, Digital Main Street |
| Tech Startups | IRAP, SIF, Innovate BC |
| Rural Business Owners | CanExport Community Investment, Regional Development Agencies |
| Non-Profits | Canada Summer Jobs Grant, Community Services Recovery Fund |
| Solo/Freelancers | Canada Digital Adoption Program (Boost Your Business) |
| Indigenous Business Owners | Aboriginal Entrepreneurship Program, Indigenous Growth Fund |
| Women in Business | Women Entrepreneurship Strategy |
Take the Guesswork Out of Finding Small Business Grants
Finding grants can be time-consuming and overwhelming. That’s where Granted Consulting comes in—with tools like GetGranted, a searchable database of Canadian grants, and a comprehensive Small Business Grant Guidebook to help entrepreneurs identify and secure available funding.
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6 Tips for Successful Grant Applications
Applying for grants can be competitive, but with the right approach, you can improve your chances of success. Whether you’re a first-time applicant or a seasoned pro, these key steps will help you create a thoughtful, strong application that stands out. Here’s how to get started:
1. Research & Plan
Before jumping into the application process, take the time to thoroughly research the grants available to you. Understand the specific criteria, funding amounts, and deadlines. It’s important to ensure that the grants you apply for align with your business goals and that you meet all eligibility requirements. Proper planning can save you time and effort in the long run, helping you focus on the opportunities most suited to your needs.
2. Keep it Concise & Clear
Funders read dozens, if not hundreds, of applications. To make sure yours gets the attention it deserves, keep your application clear and to the point. Avoid jargon and lengthy explanations. Funders are looking for straightforward answers that quickly demonstrate how your business fits the criteria and how the funding will be used. A concise, well-organized application is more likely to make a lasting impression.
3. Tailor Your Application to the Grant
Every grant has its own specific requirements and goals. It’s important to customize each application to address the criteria outlined by the funding body. Highlight how your business aligns with the grant’s objectives and explain exactly how the funding will help achieve those goals. A tailored application shows that you’ve put in the effort and are truly invested in the success of the program.
4. Review & Revise
After completing your application, take the time to review and refine it. Proofread for any spelling or grammatical errors, and make sure your ideas flow logically. If possible, ask a mentor or advisor to look over your application and provide feedback. A fresh set of eyes can catch details you might have missed and offer valuable suggestions to improve clarity and impact.
5. Follow-Up
Once you’ve submitted your application, don’t be afraid to follow up—if the process allows. A polite follow-up can show your enthusiasm for the grant and reinforce your commitment to the project. It’s also an opportunity to address any lingering questions or provide additional information that may support your application.
6 Don’t be Afraid to Try Again
Rejection isn’t the end of the road. If your application is unsuccessful, don’t be discouraged. Instead, use the feedback you receive to strengthen your future applications. Whether it’s adjusting your approach, refining your business plan, or providing more evidence of your project’s impact, each rejection is an opportunity to learn and improve your chances next time.
The Difference Between Grants & Loans
Grants and loans are both valuable sources of funding, but they serve different purposes. Grants are non-repayable funds provided for specific purposes, such as supporting innovation, business growth, or community development. While grants can be highly beneficial, they are also often highly competitive, requiring businesses to meet certain criteria and demonstrate clear goals. On the other hand, loans are funds that must be repaid with interest. Loans tend to be quicker and more flexible compared to grants, making them a more accessible option for businesses that need immediate funding or require larger sums of money. While loans come with the responsibility of repayment, they can offer more straightforward access to capital.
The Limitations of Small Business Grants in Canada
While grants are attractive, they come with limitations. Many grants require funds to be used for a specific project, such as hiring, digital adoption, or export development, which may not match your immediate needs. Grant applications can also take months to process, delaying critical initiatives. If you’re facing urgent needs, business financing may offer faster, more flexible support.
Fast & Flexible Funding Solutions When Grants Aren’t Enough
If you’re ineligible for grants or need quicker funding, Merchant Growth offers flexible financing options built for Canadian small businesses.
Term Financing
At Merchant Growth, we offer term financing ranging from $5,000 to $800,000 to support a wide variety of small businesses, from restaurants and coffee shops, to construction contractors and hardware stores. The application process takes only a few minutes, and you can receive funding in as little as 24 hours. Unlike a traditional loan, our financing does not require collateral and offers flexible payment terms to meet your needs.
Business Line of Credit
Our business line of credit is a versatile financing option designed to give small businesses quick access to capital whenever they need it. With this revolving credit facility, you can borrow funds as required and only pay interest on the amount you withdraw. This helps business owners manage cash flow effectively and reduce dependency on credit cards. Our business line of credit features competitive interest rates and repayment terms that suit your business’s needs, providing the flexibility to borrow, repay, and borrow again as needed.
Wrapping Up: Navigating Small Business Funding
Small business grants provide a powerful funding option for entrepreneurs across Canada, but they aren’t always enough or available when you need them. Whether you’re applying for grants, seeking a loan, or combining funding sources, planning ahead is key to building a sustainable, thriving business.
At Merchant Growth, we’re proud to offer flexible, fast financing solutions to support Canadian small businesses through every stage of their journey.
Minimum Eligibility Requirements:
- Located in Canada
- Monthly revenue of at least $10,000
- Minimum of 6 months in business
