#7 Best Grants for Small Businesses in Canada (+ How to Apply)

Starting a small business can be an expensive endeavor. The Canadian government recognizes the vital role that small businesses play in creating a strong and inclusive economy.

To help your business succeed, they offer a variety of grants to help small businesses get started.

Grants are essentially free money that does not need to be repaid. This article will discuss some of the grants available to small businesses in Canada.

Government Grants for Small Businesses in Canada

The Canadian government offers a variety of grants to small businesses to support job creation, innovation, and economic growth. These grants fall under four main areas:

Research and development: Grants that support research and product development in areas such as climate change or medical technology.
Exporting grants: Grants given to businesses that are trying to sell their products overseas.
Non-profit: Grants given to non-profit organizations so they can continue to run their programs.
Wage assistance programs: Grants that aim to help business owners pay labor costs.

In addition to federal programs, grants are also available through provincial and municipal governments. Some of the key government grants available to Canadian small businesses include:

Canada Digital Adoption Program (CDAP)

Modeled after the Digital Main Street programs in Ontario and Toronto, the CDAP is a $4 billion federal fund that helps small and medium businesses start or expand their digital operations.

To be eligible for this program, businesses must be Canadian-owned, for-profit, and have between 1 to 499 employees. They must also have an annual revenue of at least $500,000 but no more than $100 million in one of the previous three tax years.

Small businesses may be eligible for a Grow Your Business Online micro-grant (up to $2,400).

Small and medium businesses may be eligible for a Boost Your Business Technology grant to hire a digital advisor.

Indigenous Growth Fund

The Indigenous Growth Fund is an investment fund that raised more than $150 million in capital to invest in Indigenous-owned Canadian businesses.

Funds will be distributed by local financial institutions and organizations.

Women Entrepreneurship Strategy

The Women Entrepreneurship Strategy program provides more than $6 billion to help women-owned businesses and female entrepreneurs. This program focuses on providing loans and investment capital, not grants.

The program includes support and mentoring networks, and helps women entrepreneurs access new markets.

Black Entrepreneurship Program

The Black Entrepreneurship Program is an investment of up to $265 million designed to be spent over four years.

The program provides support and mentorship for Black entrepreneurs.

Additionally, the Black Entrepreneurship Loan Fund has loans of up to $250,000 and a pilot program for micro-loans of $10,000 to $25,000.

Canada Small Business Financing Program

The Canada Small Business Financing Program is a loan program in collaboration with financial institutions.

This program offers term loans and lines of credit.

Term loans can be used to finance these costs:

Purchase or improvement of land or buildings used for commercial purposes.
Purchase or improvement of new or used equipment.
Purchase of new or existing leasehold improvements, such as renovations to a leased property by a tenant.
Intangible assets and working capital costs.
Lines of credit can be used to pay for working capital costs, like day-to-day operating expenses of the business.

The maximum loan amount for a borrower is $1.15 million:

Lines of credit – Up to a maximum of $150,000.
Term loans – Up to a maximum of $1,000,000:

For any one borrower, and.

No more than $500,000 can be used for purchasing leasehold improvements or improving leased property or purchasing or improving new or used equipment, and.

Of that amount, a maximum of $150,000 could be used for intangible assets and working capital costs.

Small businesses or start-ups operating for profit in Canada, with gross annual revenues of $10 million or less are eligible. Farming businesses are not eligible under this program. Agriculture and Agri-Food Canada has a similar program for the farming industry.

Self-employment programs

This program provides income support while you are planning and setting up your business, as well as support in other areas, such as creating a business plan and calculating your costs.

Aboriginal Business and Entrepreneurship Development

To be eligible for this program, applicants must be a Canadian Aboriginal individual or a Canadian corporation, partnership, association, or other legal entity that is majority-owned and controlled by Canadian Aboriginal people.

If you are Aboriginal or have a majority-owned Aboriginal business, you can apply for up to $99,999 to help you start, develop, and grow your business.

To help you compare the different government grants available, here is a table summarizing the key features of each program:

Grant Name	Eligibility Criteria	Maximum Funding	Application Deadline
Canada Digital Adoption Program (CDAP)	Canadian-owned, for-profit business with 1 to 499 employees and between $500,000 and $100 million in annual revenue	$2,400 (Grow Your Business Online micro-grant); $15,000 (Boost Your Business Technology grant)	Applications for the Boost Your Business Technology grant are closed. The Grow Your Business Online grant is no longer accepting new applications as of September 30, 2024.
Indigenous Growth Fund	Indigenous-owned businesses	Varies depending on the lending institution	No deadline to apply
Women Entrepreneurship Strategy	Women entrepreneurs and women-owned businesses	Up to $50,000 in loans	Varies depending on the organization delivering the loan fund
Black Entrepreneurship Program	Black-led businesses or businesses with majority Black ownership	Up to $250,000 in loans	Varies depending on the organization delivering the loan fund
Canada Small Business Financing Program	Small businesses or start-ups with gross annual revenues of $10 million or less	$1,150,000 in loans ($150,000 for lines of credit, $1,000,000 for term loans)	No deadline to apply
Self-employment programs	Individuals starting a business	Varies depending on the program	No deadline to apply
Aboriginal Business and Entrepreneurship Development	Canadian Aboriginal individuals or majority-owned Aboriginal businesses	$99,999	No deadline to apply

Private Grants for Small Businesses in Canada

In addition to government grants, several private organizations offer grants to small businesses in Canada. Some of these organizations include:

Visa Canada: offers the She’s Next Grant Program to women entrepreneurs.
Futurpreneur Canada: offers mentoring and financing to young entrepreneurs aged 18 to 39.
Northern Development Initiative Trust: offers grants to businesses in central and northern British Columbia.

Resources for Finding Grants for Small Businesses in Canada

Finding the right grant for your business can be challenging. Luckily, there are many resources available to help you in your search. Some of the most helpful resources include:

Canada GrantWatch: This is a searchable database of Canadian small business grants. The site also provides up-to-date news and information about the latest available funds.
Canada Startups funding database: This database provides information and access to over 800 government grants and loans. You must pay a membership fee to search the database.
Business Benefits Finder: This is a searchable database of provincial and territory-specific programs and services to help you find loans, grants, and other business financing options for your small business or startup.
Funding programs for employment and social development: This is a list of links to Canadian government grants and contributions that help support jobs, training, and social development.
Fundingportal: Fundingportal helps you find business financing from 11,000 government grants and business incentive programs in Canada, the US, and the UK.
Futurepreneur Canada: This is the only national, non-profit organization that provides business financing, mentoring, and support tools to aspiring small business owners aged 18–39.
Government of Canada business grants and financing: This website provides access to information on all Canadian government grants, loans, private and public sector financing, and leveraging personal assets.
Mitacs: This website has a list of programs and business grants available for projects that connect Canadian academia, industry, and the world.
Indigenous business development: This website provides information on starting an Indigenous business and grant resources.
Startup Canada grants and programs: Startup Canada offers two startup funds, an international startup competition, and many supportive startup programs and awards.

Eligibility Criteria for Grants for Small Businesses in Canada

The eligibility criteria for small business grants in Canada vary depending on the grant. However, some common eligibility criteria include:

Business Location: The business must be located in Canada. This is because grants are often designed to support local economic development and job creation.
Business Size: The business must be a small or medium-sized enterprise (SME). This is because grants are often designed to help businesses that may not have access to traditional financing options.
Industry: The business must operate in a specific industry. This is because grants are often targeted towards industries that the government wants to develop, such as technology or innovation.
Business Stage: The business must be a start-up or an existing business. Some grants are specifically for start-ups, while others are for existing businesses that are looking to expand.
Ownership: The business must be owned by a Canadian citizen or permanent resident. This is because grants are often designed to support Canadian businesses and entrepreneurs.

Challenges and Restrictions

While grants can be a valuable source of funding for small businesses, it’s important to be aware of the challenges and restrictions associated with them. Some of the key challenges include:

Restrictive: Each grant is given with a specific purpose in mind, and applicants must meet strict eligibility requirements.
Time-consuming: Applications can take a lot of time and effort to fill out.
Competitive: Grants are highly competitive, and there is no guarantee of success.
Rules: There are usually strings attached to any grant. Some might require a matching loan to supplement the grant, while others require progress reports on the business.
Matching Funds: Most government grants require businesses to contribute their own money alongside government money (10% to 50% is standard).
Specific Purpose: Grants are typically made available for specific purposes, such as innovation or job creation.

Application Process for Grants for Small Businesses in Canada

The application process for small business grants in Canada also varies depending on the grant. However, the application process generally includes the following steps:

Gather the required documents. This may include a business plan, financial statements, and a company registration certificate.
Complete the application form. Make sure to read the application form carefully and provide all the information requested as completely as possible.
Submit the application form and supporting documents. Keep track of what you send and make sure that you get an acknowledgment for each submission.

Self-Employment Program Application Process

The Self-employment program in Canada offers a pathway for individuals with experience in cultural or athletic fields to immigrate to Canada permanently. The application process for this program includes the following steps:

Apply for permanent residence. Make sure you are eligible to apply and use the application guides to help fill out your application properly.
Get your fingerprints and photo taken. If you are between 14 and 79 years old, you need to give your fingerprints and photo (biometrics) for every application for permanent residence you submit.
IRCC processes your application. After they receive your biometrics, they will start processing your application.
IRCC makes a decision on your application. They will let you know if you are approved to come to Canada. If you are, they will issue your documents.
Travel to Canada (if you’re approved). Make sure you travel with the documents IRCC gave you.

Black Entrepreneurship Program Application Process

The Black Entrepreneurship Program provides loans of up to $250,000 to support Black business owners and entrepreneurs across Canada. The application process for this program may vary depending on the financial institution providing the loan. However, here is a general overview of the process:

Complete a pre-qualification assessment form. This form will help determine if you meet the basic eligibility criteria for the program.
Pre-qualification. A program specialist will contact you to confirm your details and answer any questions.
Loan application. You will need to gather your financial documents and business plan and submit them as part of your loan application.
Approval. Once your application has been reviewed, you will be advised on the decision.

Northern Development Initiative Trust Application Process

The Northern Development Initiative Trust offers grants to businesses in central and northern British Columbia. The application process for these grants includes the following steps:

Read the program requirements. Review the program guidelines and associated forms to learn about the criteria and requirements.
Create a user account and log into the online application portal.
Complete and submit an online application. You will need to provide a completed budget template, a management and measures template, quotes and estimates, letters of commitment, and any additional supplemental project documentation.

Deadlines for Grants for Small Businesses in Canada

The deadlines for small business grants in Canada vary depending on the grant. It is important to check the deadline for each grant before applying.

Tips for Applying for Grants

Here are a few tips for applying for small business grants in Canada:

Start your research early. There are many grants available, so it is important to start your research early to find the ones that are right for your business.
Read the eligibility criteria carefully. Make sure you meet all the eligibility criteria before you apply.
Write a strong application. Your application should be clear, concise, and persuasive.
Get help from a professional. If you are not sure how to write a grant application, you can get help from a professional grant writer.
Have a strong business plan. A strong business plan is essential when applying for grants. It shows the viability of your business and how you will generate profit.
Be prepared for a lengthy application process. Applying for grants can be time-consuming, so start early and be prepared to provide detailed information.

Success Stories

Many small businesses in Canada have benefited from grants. Here are a few examples:

Crystal Lake Resort in Vanderhoof received a $17,569 Small Business Recovery rebate to help them adjust to a change in clientele during the COVID-19 pandemic.
Mehetta Bammies in Toronto was able to increase its products’ market readiness through the Black Entrepreneurship Alliance program.
Chickapea Pasta in Collingwood used a grant to roll out new product lines and test new markets.

These are just a few examples of the many small businesses in Canada that have benefited from grants. By doing your research and writing a strong application, you can increase your chances of getting funding for your business.

Wrap!

There are many grants available to small businesses in Canada. By doing your research and writing a strong application, you can increase your chances of getting funding for your business.

Grants can help small businesses with various expenses, such as start-up costs, expansion costs, and hiring new employees. In addition to financial assistance, many grants also provide business advice, mentoring, and training.

When researching grants, it’s important to consider your business’s specific needs and eligibility. Grants often have specific requirements, such as location, industry, and business stage.

It’s also important to be aware of the challenges and restrictions associated with grants, such as the need for matching funds and the competitive nature of the application process.