Grants & Subsidies for Canadian Businesses

| January 19, 2016 | Business Planning

Good news if you’re starting up – or already operating – a small business in Canada. A number of federal grants and subsidies programs are available to fund the launch or development of your company.

Grants and subsidies differ in several ways. Federally funded grant programs provide business owners with “free money” earmarked for a specific purpose. Funds may be available for a particular industry, business type, or location.

Subsidies, on the other hand, may require a business to provide a portion of funding to promote specific business activities to promote economic growth. Tax credits or cash payments are common types of subsidies.

Learn more about how to find funding opportunities for your Canadian business below.

Canadian small business grants

Start your search for grant and subsidy opportunities for your company on the Canada Business Network website.

A large number of grants, including the Atlantic Innovation Fund, Ontario’s Interactive Digital Media Fund and the Yukon’s Agriculture Development Fund are awarded by region. You can streamline your search for grants by filtering search results by province and/or business type.

Some grants, like the Career Focus program, apply to all provinces and territories. This opportunity may be a good fit if you can offer work experience to youths between the ages of 15 and 30. One of the great benefits of the Career Focus grant is that funding may cover all of the costs associated with hiring young workers.

Subsidies for Canadian companies

You can access a list of Canadian wage subsidy programs for small businesses on this section of the website. Like grants, some subsidies are open to all Canadian businesses while others are region-specific.

For instance, the Apprenticeship Job Creation Tax Credit provides Canadian employers with a non-refundable tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices. This subsidy offers a great incentive to companies who would benefit from training employees for a specific job that needs to be filled.

An example of a regional subsidy is the reimbursement available for up to 50% of training costs for business owners or employees in Atlantic Canada who want to take courses at the Bonavista Institute for Cultural Tourism in Newfoundland. The subsidy, available to a maximum of $1500, can be used to cover the costs of student tuition as well as travel, meals and accommodation.

The list of available grants and subsidies for Canadian small business owners is extensive. Be sure to also look into financial assistance that may be available for your business through your provincial or territorial government, local community groups and municipality.