Starting and growing a small business in Canada can be a rewarding yet challenging endeavor. One of the most significant challenges that entrepreneurs across the country face is securing funding. While loans and equity financing are common options, grants can provide an invaluable source of non-repayable funds, making them an attractive option for small business owners looking to minimize financial risk while pursuing growth opportunities. In this guide, we’ll highlight various grants across the country that are available to small business owners.
Canada Digital Adoption Program (CDAP) aims to help small and medium-sized businesses adopt digital technologies to remain competitive. It offers two streams:
Grow Your Business Online: Provides up to $2,400 in grants for e-commerce implementation.
Boost Your Business Technology: Offers up to $15,000 to cover 90% of eligible project costs for digital transformation initiatives.
Sustainable Canadian Agricultural Partnership (SCAP) is a 5-year agreement until 2028 that aims to strengthen the competitiveness, innovation, and resilience of the agriculture, agri-food, and agri-based products industries. It offers various funding streams for agricultural businesses.
Many provinces offer region-specific grants. For example:
The Northern Development Initiative Trust provides grants for businesses in central and northern British Columbia.
Starter Company Plus offers personalized guidance, workshops, and mentoring, plus the chance to apply for a $5,000 grant to start, expand, or buy a business in Ontario.
Canada Economic Development for Quebec Regions’ business scale-up and productivity program funding supports innovation and business growth at any stage of development, helping SMEs and NPOs expand, increase productivity, and grow through innovation.
Tourism Growth Program is a Canada-wide program that supports capital and technology adoption in the tourism industry, with a focus on Indigenous tourism businesses.
Carbon Capture, Utilization and Storage (CCUS) and Hydrogen Program offers funding for businesses working on carbon capture and hydrogen technologies.
Indigenous Business Grants
Indigenous Business Navigator Service connects you with Government of Canada programs and services, helping you find the right support for accessing capital or community economic development planning.
Aboriginal Entrepreneurship Program: Access to Capital provides individual Indigenous entrepreneurs with up to $99,999 in funding assistance and eligible Indigenous community businesses may receive up to $250,000.
Black Entrepreneurs
The Black Entrepreneurship Loan Fund provides up to $250,000 in loans to grow your business. The grant is designed to empower black-owed businesses with loans, education and collaboration.
Women Entrepreneurs
Visa's She's Next Grant Program provides funding specifically for Canadian women entrepreneurs and women-owned businesses.
Numerous programs across Canada offer financial support for hiring and training new employees. These grants typically range from$5,000 to $7,000 for interns/co-op students and $12,000 to $15,000 for recent graduates.
Canada Job Grant (CJG) is a government program that helps businesses cover the costs of third-party skills training for employees, with over $194 million allocated annually to enhance workforce skills.
Scientific Research & Experimental Development (SR&ED) Tax Credit
While technically a tax credit, SR&ED provides significant financial benefits for businesses conducting R&D. It offers a15% tax credit or a refundable credit of 35% on the first $3 million of qualified expenditures.
National Research Council's Industrial Research Assistance Program (IRAP)
IRAP provides funding of up to $10 million for research and development projects.
Business Benefits Finder is a tool available through the Government of Canada website that allows businesses to fill out a short questionnaire to receive a tailored list of programs and services to help your business grow.
Mentor Works has an extensive list of Canadian small business grants, tax credits, and no-interest loans from the federal and provincial governments. Give ita read to discover additional programs that may be of use to your small business.
1. Ensure your business meets the basic eligibility criteria: typically, you should be incorporated for at least 1-2 years, have fewer than 500 employees, and be in good financial health.
2. Prepare essential documentation, including:
· Business description
· Employee count
· Financial statements for the past three years
· Incorporation documents
· Project descriptions and budgets for specific funding requests
3. Research and identify grants that align with your business goals and upcoming projects.
4. Carefully review each grant’s specific eligibility requirements and application guidelines.
5. Submit a well-crafted application that clearly demonstrates how your business or project aligns with the grant’s objectives.
Looking for more ways to give your small business a boost? Driven's Small Business Loan could be just what you need. With flexibility, competitive interest rates, and a quick approval process, we're here to help you manage cash flow, invest in new opportunities, or even expand your operations. Think of us as a partner on your journey to achieving those big dreams. Let's explore how we can grow together – why not take a look and see how it fits your business goals?
Remember, grant applications can be time-consuming, so focus on opportunities that best fit your business. Be wary of scams - legitimate government grants never require application fees or guarantee approval.
Securing a grant can be a pivotal step in propelling your small business forward. By taking the time to research and apply for the right grants, you’re investing in the future of your business—without the added pressure of repayment. Embrace these opportunities, and watch your business thrive in Canada’s dynamic market.
Advice and research for Canadian small businesses from our expert team
