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Guide: How to get Ontario Government Grants and Funding For Startups

6 min read
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Chloe Nguyen

Ontario Government Grants for Small Businesses

From small business government grants to early-stage start-up funding, there are a lot of different grants from the Government of Ontario if you are trying to start a new business or are trying to grow one that you already have. No matter what stage your business is in, a government grant can be one of the best ways to start receiving funding.

Here we have some information for you to learn about getting Ontario government grants and funding for your small business startup.

Ontario Government Grant Options for Your Small Business

A government grant is a sum of money that is used to fund the goals of a business from the government that does not need to be paid back. There are, however, criteria for applications and funds will only be awarded to businesses that fit these criteria and the amount of funding can vary from program to program. So that you’re not wasting your time applying for grants that you won’t qualify for, be sure to read through all of the requirements beforehand. We have a funding database that helps you search for grants based on your needs, but to make things easier we have put together this list of different types of groups that can be eligible for funding from grants.

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Business Expansion

Expanding your business into different countries or expanding your service or product lines within your area are a couple of ways that a business can expand. Generally, the act of growing a business is by expanding it outside or within a country is business expansion. There are various grants provided by the government, depending on the qualifications, that can be accessed by businesses that are looking to expand. These grants include:

  • Business Scale-up and Productivity Program (BSP) Southern Ontario
  • Canada Media Fund: Experimental Stream
  • Canadian International Innovation Program (CIIP)
  • Canada Small Business Financing Program (CSBFP)
  • CanExport
  • CDMN Soft Landing Program
  • Dairy Processing Investment Fund (DPIF)
  • Eastern Ontario Development Fund (EODF)
  • IESO Conservation Fund
  • MaRS Investment Accelerator Fund
  • Northern Ontario Heritage Foundation Corporation Programs
  • OCE Market Readiness Program
  • OCE Voucher Programs
  • Regional Innovation Ecosystem (RIE)
  • Rural Economic Development (RED)
  • Southwestern Ontario Development Fund (SWODF)
  • Strategic Innovation Fund (SIF)

Research and Development (R&D)

R&D plays a big part in the growth of a business and not many business owners are aware of that. The level of quality of a service or product and how effective it will be can be determined by the research and development that has been done before it is launched. Here is a list of research and development related grants for small businesses that are provided by the government:

  • Alberta-Ontario Innovation Program
  • Autonomous Vehicle Innovation Network (AVIN) WinterTech Development Program
  • Business Scale-up and Productivity Program (BSP) Southern Ontario
  • Canadian International Innovation Program (CIIP)
  • Canada Media Fund: Experimental Stream
  • Dairy Processing Investment Fund (DPIF)
  • ENCQOR 5G SME Technology Development Program (5G SDP)
  • Health Technologies Fund (HTF)
  • IESO Conservation Fund
  • Innovative Solutions Canada (ISC)
  • Interactive Digital Media (IDM) Fund
  • Interactive Digital Media Tax Credit (OIDMTC)
  • IRAP Accelerated Review Process (ARP)
  • IRAP Mid-Size Projects
  • MaRS - Investment Accelerator Fund
  • MaRS - Regional Innovation Centres
  • MITACS Accelerate
  • MITACS Elevate
  • Northern Ontario Heritage Foundation Corporation Programs
  • OCE Customer Demonstration Program
  • OCE Voucher Programs
  • Strategic Innovation Fund (SIF)
  • Scientific Research and Development (SR&ED)

Grants for Hiring and Training Employees for Businesses in Ontario

It is important for the long-term growth of a business to have a system for the recruitment and hiring of new talent. A grant can help your business handle the costs that are associated with hiring new employees.

Here are a few human-resource-related grants that can be used for hiring and training:

  • Apprenticeship Job Creation Tax Credit
  • Canada-Ontario Job Grant (COJG)
  • Connect Canada Internship
  • FedDev Ontario Training Program
  • Mitacs Accelerate
  • Northern Ontario Internship Program
  • Youth Employment Program (IRAP)

Ontario Capital Investment Grants

Investments in long-term assets for your business are called capital investments. This can include technology, machinery, land, and real estate. It is absolutely worth investigating any grants that are related to capital investment since it can be a huge part of Ontario small businesses.

  • Business Scale-up and Productivity Program (BSP) Southern Ontario
  • Dairy Processing Investment Fund (DPIF)
  • Eastern Ontario Development Fund (EODF)
  • Northern Ontario Heritage Foundation Corporation (NOHFC)
  • Ontario Automotive Modernization Program (O-AMP)
  • Southwestern Ontario Development Fund (SWODF)
  • Strategic Innovation Fund (SIF)

Other Options for Business Financing

There are many other incentives for your business other than grant funding, such as:

  • Tax credits: Instead of directly funding your business, these credits can allow you to reduce the costs of running your business. It will be worth it to take advantage of any way that will allow you to free up some of your business’s cash flow and reducing your costs is a great way to do so.
  • Loans: This will be another good option to consider that will be less dependent on what business you are running. A loan will focus on whether or not your business will be able to pay back the loan within the required time schedule. A loan can even be forgiven as a part of a few government programs.
  • Wage subsidies: This allows you to be more diverse with your business’s hiring practices by covering a percentage of the wages for your new employee. Using this will give you the chance to have your business’s human capital reduced.

Is Your Business Ready for a Loan or Financing?

It is a good idea to make sure that your business is ready to receive any financing when you are deciding whether or not this is a route you want to go down. You may be surprised to hear that many businesses don’t take the right steps to make sure that they will be a good candidate for funding. You can use these tips to make sure your business is ready:

  • Financing plan: If you aren’t prepared, you should have a plan to prepare yourself to pay back any loans that your receive. Your business may not be ready for a loan if you don’t have the capability to pay back a loan.
  • Quality of your product or service: You should have a fully functioning product or service that you are trying to sell. Having a prototype can help to prove that you’re worthy of receiving a loan to build your business. It’s important to show your lender that you are capable of paying back your loan.

Canada Small Business Financing Program

Through this program provided by the government start-ups and existing businesses can apply for a loan. To apply, your business must be located in Canada and generate less than $10 million in annual revenue. There are some restrictions that are associated with this program such as:

The funds can only be used for:

  • Business vehicles
  • Equipment
  • Commercial property