Where Can I Get a Business Grant? 6 Top Sources of Grants for Ontario Businesses
There are hundreds of organizations that provide business grants to Ontario businesses and aspiring entrepreneurs, but most of them fall into one of six sectors:
Six Sources of Business Grants
1. Canadian federal government
The Government of Canada funds a wide range of business activities, including hiring, training, research & development, and business expansion. In addition to grants, the federal government also provides wage subsidies, loans, loan guarantees, tax incentives, and equity investments.
2. Provincial government
The Government of Ontario funds business activities such as training and skills development, research & development, business expansion, and energy efficiency upgrades.
3. Municipal governments
Municipal (city) governments in Ontario typically fund business activities such as retail storefront improvements, business incubation, tourism development, and environmental initiatives such as energy efficiency improvements.
4. Universities
Universities in Ontario provide funding for incubation and acceleration of new businesses, industry partnerships, and the commercialization of technology.
5. Private organizations
Some corporations in Ontario provide funding to small businesses, and they usually do so through supporting start-up incubators and accelerators, or through direct equity investments.
6. Non-profit organizations
While sometimes providing grants and loans (which are often funded by government) to small businesses, non-profits in Ontario also provide in-kind services to start-ups and early-stage businesses. They do so by establishing networks, educational programs, and events. Some non-profits also run incubators and accelerators.
Types of Funding Provided by Funding Organizations in Ontario
| Type of Organization | Accel/Incub | Contest | Equity Invest | Grant | In-Kind Support | Loan | Rebate | Subsidy | Tax Incentive |
|---|---|---|---|---|---|---|---|---|---|
| Fed Gov | |||||||||
| Prov Gov | |||||||||
| Mun Gov | |||||||||
| University | |||||||||
| Private | |||||||||
| Non-Profit |
Let’s dig into each type of funding organization, to better understand why they provide grants to businesses and what they fund:
Canadian Federal Government Funding for Businesses
The largest source of grant funding for businesses is the Canadian federal government.
Why Does the Government of Canada Give Grants to Businesses?
The federal government provides grants to businesses for a variety of reasons, including to support economic growth, innovation, environmental sustainability, and regional development:
Economic Growth
The government recognizes that businesses are key drivers of economic growth, so they provide grants to help businesses expand their operations, increase production, and create new jobs. By supporting businesses in this way, the government hopes to stimulate economic growth and increase prosperity across the country.
Innovation
The government also recognizes the importance of innovation in driving economic growth and competitiveness. Therefore, they provide grants to businesses that are developing new technologies, products, or services. These grants can help businesses overcome the financial barriers to innovation and bring new ideas to market.
Environmental Sustainability
The government has committed to promoting environmental sustainability and reducing greenhouse gas emissions. To support this goal, they provide grants to businesses that are developing innovative solutions to environmental challenges, such as renewable energy technologies or sustainable manufacturing practices.
Regional Development
The government provides grants to businesses in certain regions to promote economic development and reduce regional disparities. For example, they provide grants to businesses in remote areas to help them overcome the challenges of operating in those regions.
Key Government of Canada Business Funding Ministries & Agencies
ISED (Innovation, Science, and Economic Development Canada)
ISED (Innovation, Science, and Economic Development Canada) offers a range of funding programs to support businesses in various sectors. Some of its funding programs include the Strategic Innovation Fund, the Women Entrepreneurship Strategy, and the CanExport program, which provides funding to help businesses expand their international markets.
BDC (Business Development Bank of Canada)
BDC (Business Development Bank of Canada) provides financing and advisory services to Canadian businesses. It offers loans, venture capital, and other financing solutions to help businesses grow and expand. BDC also provides advisory services to help businesses with their business plans, financial management, and other areas of their operations.
EDC (Export Development Canada)
EDC (Export Development Canada) provides financing and insurance solutions to Canadian businesses that are looking to expand into international markets. It offers financing solutions such as working capital loans, term loans, and guarantees to help businesses manage the risks associated with exporting.
FCC (Farm Credit Canada)
FCC (Farm Credit Canada) provides financing and other services to Canadian farmers and agribusinesses. It offers loans, leasing, and other financing solutions to help farmers and agribusinesses with their operations. FCC also provides advisory services to help farmers with their business plans, financial management, and other areas of their operations.
Example Government of Canada Business Funding Programs
| Program Name | What the Program Does |
|---|---|
| Canada Small Business Financing Program (CSBFP) | Helps small businesses obtain financing by providing loan guarantees to financial institutions (banks and credit unions) |
| Canada Summer Jobs Program | Provides wage subsidies to employers to hire students for summer jobs |
| Canada Digital Adoption Program | Provides funding to small and medium-sized businesses to help them adopt digital technologies and improve their productivity |
| CanExport | Provides funding to Canadian small and medium-sized businesses to help them expand into new international markets |
| Aboriginal Business Financing Program (ABFP) | Provides financing to Aboriginal entrepreneurs and business owners to help start or expand their businesses |
| IRAP (Industrial Research Assistance Program) | Provides funding and advisory services to small and medium-sized businesses to help them undertake research and development projects |
| SR&ED (Scientific Research and Experimental Development) | Provides tax incentives to Canadian businesses that undertake research and development activities |
Ontario Provincial Government Funding for Businesses
Like the federal government, the Ontario provincial government has business grant programs, as well as loan programs, tax credits, and other types of financial incentives.
Why Does the Government of Ontario Give Grants to Businesses?
The provincial government has similar reasons for providing incentives as the federal government:
Attracting investment
Financial incentives make Ontario a more attractive destination for businesses looking to invest, expand or relocate. By offering grants or tax credits, the government can reduce the cost of doing business, encouraging both domestic and foreign companies to invest in the province.
Job creation
One of the main goals of financial incentives is to stimulate job creation. By supporting businesses through grants, wage subsidies, or tax credits, the government encourages companies to hire more employees, leading to increased employment opportunities and overall economic growth.
Encouraging innovation
Some financial incentives are targeted towards specific industries and sectors that are considered essential for future economic growth, such as technology, clean energy, and advanced manufacturing. By providing support to these industries, the government helps foster innovation and the development of new products, services, and technologies.
Enhancing competitiveness
Grants also help Ontario-based businesses remain competitive in both domestic and international markets. By reducing costs, businesses can invest in research and development, expand their operations, and improve their products and services, ultimately contributing to the long-term economic success of the province.
Key Government of Ontario Business Funding Ministries & Agencies
Ministry of Agriculture, Food and Rural Affairs (OMAFRA)
Ministry of Agriculture, Food and Rural Affairs (OMAFRA) provides funding programs to help farmers manage risks, invest in their businesses, and improve their profitability.
Ministry of Economic Development, Job Creation and Trade
Ministry of Economic Development, Job Creation and Trade offers funding designed to help businesses in Ontario grow, innovate, and become more competitive.
Ministry of Natural Resources and Forestry
Ministry of Natural Resources and Forestry has programs designed to help businesses become more sustainable, innovative, and competitive.
Ministry of Labour, Immigration, Training and Skills Development
Ministry of Labour, Immigration, Training and Skills Development provides grants to support businesses in attracting and retaining skilled workers, and to help workers develop the skills they need to succeed in the workforce.
Northern Ontario Heritage Fund
Northern Ontario Heritage Fund provides funding to help businesses start, grow, and expand in the region, and to create new jobs and economic opportunities.
Example Ontario Government Business Funding Programs
| Program Name | What the Program Does |
|---|---|
| Canada-Ontario Job Grant | Supports employers who wish to train their employees and improve their skills. |
| Summer Company | Provides funding, mentorship, and other support to students who want to start and run their own businesses over the summer. |
| Save On Energy | A partnership between the government of Ontario and utility companies that provides incentives and support to Ontario businesses to help them improve their energy efficiency and reduce energy costs. |
Ontario Municipal Government Funding for Businesses
Municipal governments in Ontario don’t provide as many financial incentives as the federal or provincial governments, and funding tends to be focused on land-use and energy efficiency upgrades.
Why Do Ontario Municipal Governments Give Grants to Businesses?
Ontario municipal (city) governments give grants to businesses stimulate economic growth and development within their communities, which can lead to new jobs, increased tax revenue, and new investment in the area.
Grants are used to support specific industries or sectors that are important to the local economy, such as encouraging innovation and entrepreneurship, and to support specific projects or initiatives that align with the municipality’s strategic priorities, such as environmental sustainability and improving accessibility for people with disabilities.
Example City of Toronto Business Funding Programs
| Program Name | What the Program Does |
|---|---|
| Digital Main Street | Provides funding and in-kind support to small businesses to help them adopt digital technologies and improve their online presence. |
| Eco-Roof Incentive Program: Cool Roofs | Supports the installation of green roofs and cool roofs on Toronto homes and buildings |
| United Way Greater Toronto – Catalyzing Grant | Support entrepreneurs with strong employment social enterprise ideas to complete a feasibility study and business plan to test the market and employment demand |
University Funding for Businesses
Universities don’t provide much funding in the form of grants – rather, they support many new businesses through hosting business competitions and start-up programs.
Why Do Universities Give Grants to Businesses?
Universities provide funding to businesses to promote innovation in various industries, to foster collaboration between universities and businesses, and to enhance their own research capacity. All of these can lead to the development of new products, services, and technologies that benefit the universities, their communities, and Canada as a whole.
Sample Ontario University Start-Up Programs
| Program Name | What the Program Does |
|---|---|
| ELLA Altitude | A 4-month accelerator program designed for women entrepreneurs who are ready to scale their business rapidly. |
| Leap Junction Trampoline Pitch Competition | Applicants pitch their business idea in 60 seconds or less in front of a panel of judges, for a chance to win $1,000. |
| Velocity Fund Pitch Competition | Touted as “Canada’s premier early-stage start-up competition”. Three times a year, early-stage start-ups compete to receive $50K investments. |
Private Organization Funding for Businesses
While private organizations (typically large corporations) do give out grants to small businesses, they tend to be in the form of business competitions (in which a start-up pitches its business idea in return for funding), or small grants offered through business incubators.
The other major way that private organizations fund businesses is through equity investments, which are made directly through angel investing or venture capital, or business accelerators.
Sample Private Organization Business Funding Programs
| Program Name | What the Program Does |
|---|---|
| Torque Labs Accelerator Program | The Accelerator Program takes four to six months and focuses on commercializing technologies and scaling up current operations. |
| Techstars Accelerator | During each three-month program, Techstars surrounds companies with the best mentors and an unrivaled network of corporate partners, investors, and alumni. They provide funding and fundraising opportunities, workshops, and curated resources. |
| BMO Launch Me Entrepreneurship Program & Comp | Support students and recent grads with seed funding to get their venture ideas off the ground. Contestants with the overall strongest business plan and pitch will have the opportunity to win a portion of funding for their start-ups. |
Non-Profit Organization Funding for Businesses
Non-profit organizations typically offer business grants that target specific demographic groups that are under-represented in business, such as Black Canadians, Indigenous entrepreneurs, and women. They also fund businesses that are working toward environmental sustainability and various social and community goals.
Sample Non-Profit Business Funding Organizations
| Organization Name | What the Organization Does |
|---|---|
| Futurpreneur Canada | Futurpreneur provides financing, mentorship, and other support to young entrepreneurs between the ages of 18 and 39. |
| Mitacs | Mitacs provides funding and support for research and training initiatives that bring together academia, industry, and government. |