During the global COVID-19 pandemic, many businesses struggled to stay afloat when dozens of sectors were hit with shutdowns and layoffs. This has left thousands of Canadians shifting gears for their businesses and many Canadians purchasing items based on low costs, forgoing regular memberships, and staying home to save money. But where does that leave countless small businesses in Canada as they continue down the road to recovery post-pandemic?
“Small businesses are the backbone of our communities, and they must be supported.”
– Justin Trudeau, Prime Minister of Canada
As we continue to face new and existing economic difficulties as a country, we must remember that Canadian small businesses are vital for our families and communities. With that in mind, the Government of Canada continues to implement government grants to support small businesses so that they can make our communities strong with internal goods and services. This is especially important during crucial times whe individuals may not feel financially confident to continue their regular spending habits, but they do not want to see their favourite shops and spots close.
Discover the Top 10 Small Business Government Grants
Distributed to small and medium-sized enterprises (SME) via the Government of Canada, these grant programs are currently available to various SME business types across the country. Discover how these non-repayable grants can help your business with recovery, innovation, growth, and stability.
Sustainable Canadian Agricultural Partnership (SCAP)
The Sustainable Canadian Agricultural Partnership (SCAP) is an effort to strengthen the competitiveness, innovation, and resilience of the agriculture, agri-food and agri-based products industries, the Canadian government, provincial government, and territorial government has signed a new 5-year agreement until 2028 known as the Sustainable Canadian Agricultural Partnership.
Please note that the Sustainable Canadian Agricultural Partnership has a variety of different programs, each with unique streams, funding rounds, eligibility criteria, and program deadlines. To learn more about each of these programs, please visit each corresponding program page by clicking the “Learn More” button.
Canada Digital Adoption Program (CDAP)
As part of the Canada Digital Adoption Program (CDAP), funding is available for small to medium sized businesses (SMEs) to help them overcome the challenges of digital adoption in their businesses to remain competitive in this new digital age. There are two funding streams of the CDAP program: the Grow Your Business Online stream and the Boost Your Business Technology stream.
- Amount: Funding for the CDAP program varies according to stream: The Grow Your Business Online stream offers eligible applicants with up to a maximum of $2,400 in non-repayable grant contributions; while the Boost Your Business Technology stream offers up to 90% of eligible project costs up to a maximum of $15,000 per SME in non-repayable grant contributions.
- Eligibility: Eligible applicants vary slightly depending on stream, please check the official program page linked above for full eligibility criteria.
CanExport SMEs
The CanExport SMEs funding program provides Canadian grants to support Canadian businesses seeking to develop new export opportunities and markets, especially high-growth priority markets and sectors, by offsetting a portion of eligible sales and marketing activities.
- Amount:Eligible applicants can receive up to 50% funding to a maximum $50,000 grant per project.
- Eligibility: Eligible applicants include incorporated Canadian for-profit businesses <500 full-time payroll employees and between $100,000-$100M in Canadian annual revenue.
Canada Job Grant (CJG)
The Canada Job Grant is a Canadian government funding program designed to reduce the costs of providing third-party skills training to new and existing employees. It is available across Canada, with each province and territory responsible for co-branding and developing a system that’s suited towards its workforce and business makeup.
- Amount: Non-repayable grant contributions of 50-100% of training costs (i.e., course, exams, textbooks, software resources, etc.) at a value of $5,000 to $15,000 per trainee.
- Eligibility: Canadian SME with $2M liability insurance. Trainees must be a permanent Canadian citizen or granted refugee status.
Creative Export Canada (CEC) – Export Development Stream (EDS)
The Creative Export Canada (CEC) – Export Development Stream (EDS) supports new and early-stage exporters to build capacity and expand into international markets. The EDS program additionally offers grants for seasoned exporters to expand into new international markets and build business networks.
- Amount: Eligible applicants can access up to 75% of eligible expenses to a maximum of $90,000 per fiscal year.
- Eligibility: Eligible applicants must be for-profit or not-for-profit organizations with a maximum of $10 million in annual revenues and a minimum of one full-time employee.
Innovative Solutions Canada (ISC)
ISC provides government grants and procurement contracts to stimulate technology research, development, and commercialization. The program helps startups and small/medium-sized businesses (SMEs) overcome technology development hurdles so that they can produce globally demanded products and services, while also improving government operations.
- Amount: Phase 1: Grants up to $150k; Phase 2: Grants up to $1M; Phase 3: Government procurement contracts with no fixed maximum.
- Eligibility: For-profit, privately held Canadian businesses with fewer than 499 FTE employees.
Industrial Research Assistance Program (IRAP)
The Industrial Research Assistance Program offers funding for technical or research-oriented projects to solve an internal innovation challenge. Funding supports software implementation, productivity improvements, and production design or marketing projects. Not suited for training projects.
- Amount: Up to $10M non-repayable grant with 80% of direct labour and 50% of sub-contractor expenses.
- Eligibility: Maintain 1-500 people on payroll, be 2 years incorporated with internal technical R&D expertise.
Next Generation Manufacturing Canada (NGen)
The NGen Manufacturing Program supports collaborative technology development and application projects that help Canadian manufacturing companies compete globally.
- Amount: Offsets up to 44.4% of eligible project expenses. Project costs should be between $1M and $20M, providing non-repayable grant funding of approximately $444,000 to $8,880,000.
- Eligibility: Open to all industries and sectors. Must have a minimum of three private-sector project partners; lead partner and participants must be NGen members.
Business Scale-Up Productivity Program (BSP)
The Business Scale-up and Productivity (BSP) program helps businesses with high growth potential adopt/adapt innovative technologies that support productivity, grow operations, and increase exports to global markets. The program is offered via the Regional Economic Growth through Innovation (REGI) national program that is delivered by regional development agencies across Canada. Find more funding information specific to each region on our dedicated BSP pages:
- FedDev Ontario Business Scale-up and Productivity (BSP) Program; and
- Western Business Scale-up and Productivity (BSP) Program.
- Amount: Repayable contribution (no-interest loan) of up to 50% of eligible project expenses to a maximum $5 million per project and $10 million per applicant.
- Eligibility:
- Ontario applicants must: Have profitable operations in southern Ontario for the previous two consecutive years; Maintain a minimum of five full-time employees; Be provincially or federally incorporated or an Indigenous-owned business; Have financial capacity to complete the project, provide a minimum 35% contribution, and repay the government contribution in full; Have a viable project plan and have organizational capacity to complete it; and Have market or industry demand to support new technology/business expansion.
- Western Canada: Repayable contribution (no-interest loan) of up to 50% of eligible project expenses to a maximum $5 million per project and $10 million per applicant.
Southwestern/Eastern Ontario Development Fund (SWODF/EODF)
The Southwestern Ontario Development Fund (SWODF) and the Eastern Ontario Development Fund (EODF) are business expansion funding programs that incentivize companies to invest in new facilities and equipment. The programs attract SME and large-scale projects that have a significant impact on business productivity and create new employment opportunities within a company. Through the programs, successful applicants will receive grants or a combination of grants and repayable funding (government loans) to offset project costs.
- Amount: Up to 15% of project expenses to a maximum of $500,000-$5,000,000.
- Eligibility: Applicants must have been established for at least 3 years, have 10 or more full-time employees (5 FTE in rural communities), commit to creating at least 5 new jobs, and be located in southwestern/eastern Ontario.
Hiring Grants
Along with the top 10 programs listed, there are also numerous hiring grants available across Canada to help with the onboarding and training of new employees. Funding is typically quantified by the type of candidate hired and how long the contract will be; less funding is available to hire interns while more funding is available to support recent graduates.
- Amount: Depends on candidate type. Interns/Co-op students may help a business leverage an incentive of $5,000 to $7,000 per incremental new hire. Recent graduates may help a business leverage an incentive of $12,000 to $15,000 per new hire.
- Eligibility: Canadian for-profits and non-profits with the capacity to provide meaningful work experiences in an industry field. Candidates should be in (or recently graduated from) a business or educational program.
Learn More about Small Business Grants and How to Apply
This list of Canadian government grants is intended for small to medium-sized businesses that have been incorporated for at least 3 years, create at least $500,000 in annual revenue, have 15 or more employees, and perform research and development or produce a product in Canada. If you do not meet these qualifications, please visit our source for Canadian Startup Business Resources.
Looking to get started on accessing small business government grants? Connect with a member of the Mentor Works team to learn which grant could be the best fit for your business, and make sure to subscribe to our Weekly Funding Newsletter to stay informed on the latest government funding news and updates.