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The Complete Guide to Ontario Government Business Grants for Entrepreneurs

6 min read

You may have heard that to support businesses in Ontario, the Government of Canada has a lot of programs available, but did you know that the provincial government has business grants that you can also apply for as well?

We have put together an in-depth list of the ministries and agencies in Ontario that are providing grants and other funding incentives for businesses to help you. There are a few incentives that are provided by each organization.

So, let’s get started.

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Ontario Grassroots Growth Program

If your business is working on a project that is going to support the growth of the agri-food sector in Ontario to ensure the sustainability of agriculture, the Grassroots Growth Program can provide funding for these short-term projects. Preference will be given to projects where the business will be sharing the costs of the project, but the program can cover all of the eligible costs of the project.

Agricultural Credit Corporation (ACC) and Government of Ontario, Ministry of Agriculture, Food and Rural Affairs (OMAFRA) - Commodity Loan Program

This loan program was developed to help farmers to finance the expenses for their crop planting, cultivating, and harvesting in Ontario. The program provides access to financing at a lower cost to help supplement cash flow throughout the year for eligible applicants while paying less in interest. The terms for repayment can be up to 22 months.

Rural Economic Development (RED) Program

The RED program has been made to provide cost-share funding for non-profit organizations to help support activities that are creating a strong rural community in Ontario, which can open the door to increased economic development in these rural areas. The program has two streams: the Economic Diversification and Competitiveness Stream, which provides funding assistance for projects that remove barriers to job and business growth, attract or retain a skilled workforce, strengthen regional and sector partnerships, attract investment, and diversify regional economies. The Strategic Economic Infrastructure Stream supports minor capital projects that advance opportunities for economic investment and development.

Government of Ontario, Ministry of Agriculture, Food, and Rural Affairs and Agricorp - Ontario Beef Cattle Financial Protection Program

All beef cattle dealers must be licensed to do business. Producers of beef cattle must sell their animals to a licensed dealer and pay a check-off fee for every sale. These fees are deposited into a fund. When a beef dealer defaults on a payment, this program provides financial protection to the beef cattle seller.

Ontario Ministry of Finance - Tax Refund for Gasoline Used in Unlicensed Business Equipment

You may be eligible to receive a refund for any gasoline tax that you pay if you or your business purchases gasoline for unlicensed equipment used for construction, farming, or manufacturing. To qualify, the gasoline must be used for industrial, business, or institutional purposes in Ontario, tax must have been paid to Ontario, the equipment must not be used for recreation, must not be licensed under the Highway Traffic Act, and records must be kept to support refund claims.

Ontario Ministry of Finance - Tax Refund for a Power Take Off

Businesses that paid tax on fuel used within Ontario to operate auxiliary power take off equipment may receive a refund. Power take off equipment is auxiliary equipment added to a licensed motor vehicle that uses gasoline, clear diesel fuel, or propane from its fuel tank.

Government of Ontario, Ministry of Finance - Small Beer Manufacturers’ Tax Credit

All beer made in Ontario is subject to a beer tax, with microbrewers benefiting from a reduced rate. To qualify, a microbrewer’s worldwide beer production for the production year must not exceed 4.9 million litres, or 49,000 hectolitres, according to the 2026 Ontario Budget.

FedNor - Regional Relief and Recovery Fund (RRRF) - Regional Economy Stream in Northern Ontario

The RRRF supports vulnerable businesses and eligible non-profit organizations impacted by the COVID-19 pandemic. Eligible applicants can receive up to 100% of total eligible costs for bridge support. Funding may be repayable or non-repayable depending on the organization type.

IESO Grid Innovation Fund

This program funds projects that help Ontario electricity ratepayers by improving energy management or reducing grid maintenance costs. Funding is provided to specific projects with clear objectives, not companies.

Ontario Ministry of Economic Development, Job Creation, and Trade

Apprentice Program

This program provides a taxable cash grant when an apprentice completes classroom training, on-the-job training, and receives their certification.

Canada-Ontario Job Grant

Eligible employers receive financial support for training. Large businesses contribute half of the costs, while small businesses contribute one-sixth.

SmartStart Seed Fund

Youths aged 19 to 29 can receive funding to launch or grow an innovation or technology business with matching funds.

Starter Company

Youths aged 19 to 29 not attending school can receive advice and a grant to start a business, provided they contribute at least 25% of the funding.

Youth Job Connection

Employers can receive support for hiring and training youth aged 15 to 29, or 15 to 18 for summer jobs. Funding depends on training type and skill level.

Ontario Ministry of Finance

Ontario businesses are encouraged to invest and create jobs through multiple provincial tax incentives.

Apprenticeship Training Tax Credit

Businesses may receive a refundable tax credit based on salaries paid to apprentices.

Community Food Program Donation Tax Credit for Farmers

This tax credit is available to farm businesses that donate Ontario-produced food to eligible community food programs.

Co-operative Education Tax Credit

Businesses can deduct a percentage of eligible expenses when hiring students in co-operative education programs.

Ontario Business Research Institute Tax Credit

Eligible businesses may receive a refundable tax credit for qualified scientific research expenses conducted in Ontario with an approved research institute.

Ontario Innovation Tax Credit

Businesses conducting scientific research and experimental development may receive a refundable provincial tax credit.

Ontario Job Creation Investment Incentive

This incentive provides tax write-offs and accelerated depreciation for capital investments that create jobs.

Ontario Ministry of Natural Resources and Forestry - Forest Sector Investment and Innovation Program

Forest sector businesses may receive loans for projects that expand market access, with up to 50% forgivable if performance targets are met.

Eastern