Government Grants Canada: What Funding Is Available for Your Business Right Now

By GrantHub Research Team · · Lire en français

Government Grants Canada: What Funding Is Available for Your Business Right Now

Finding government grants in Canada can feel overwhelming. There are thousands of programs, each with different rules, deadlines, and funding amounts. The good news is that federal and provincial governments offer billions in non‑repayable and repayable funding every year to support Canadian businesses at every stage.

This hub breaks down the most important government grants Canada offers today, who they’re for, and how to decide which ones are worth your time.


The Main Types of Government Grants in Canada

When people search for government grants Canada, they’re usually looking for one of these categories. Knowing where your business fits saves weeks of research.

1. Research & Innovation Grants

These programs support businesses developing new or improved products, processes, or technologies.

Scientific Research and Experimental Development (SR&ED) Tax Incentive Program

  • Funding: Refundable and non‑refundable tax credits on eligible R&D expenses
  • Who it’s for: Canadian‑controlled private corporations and other eligible businesses doing R&D in Canada
  • What it covers: Wages, materials, subcontractors, and overhead related to experimental development
  • Delivery: Through your corporate tax return

SR&ED is one of the largest government funding programs in Canada and can return tens or even hundreds of thousands of dollars annually for eligible companies.

NRC Industrial Research Assistance Program (NRC IRAP)

  • Funding: Direct financial contributions (amount varies by project)
  • Who it’s for: Innovative small and medium‑sized businesses
  • What it supports: Technology development, commercialization, and scaling
  • Bonus: One‑on‑one advisory support from IRAP advisors

Many tech and manufacturing firms combine IRAP funding with SR&ED credits.


2. Export & Market Expansion Grants

If your business is selling—or planning to sell—outside Canada, export grants are some of the most accessible government programs.

CanExport SMEs

  • Funding: $10,000 to $50,000
  • Coverage: Up to 50% of eligible project costs
  • Who it’s for: For‑profit Canadian SMEs with 1–500 employees
  • Eligible activities: Market research, trade shows, marketing translation, international travel

CanExport is a true grant. As long as you meet the conditions, it does not need to be repaid.


3. Hiring & Wage Subsidy Programs

Many government grants in Canada help offset the cost of hiring and training staff, especially youth, recent graduates, and underrepresented groups.

Common features include:

  • Wage coverage of 50%–80% of employee costs
  • Fixed contract periods (often 6–12 months)
  • Industry‑ or demographic‑specific eligibility

These programs change frequently, which is why tools like GrantHub’s eligibility matcher can help you filter programs by province and industry in seconds.


4. Regional and Provincial Grants

Beyond federal programs, each province runs its own funding initiatives. These can include:

  • Ontario and Quebec innovation grants
  • Western Canada small business programs
  • Atlantic Canada growth and tourism funding

Many regional grants stack on top of federal programs, increasing your total funding.


How to Qualify for Government Grants in Canada

While every program is different, most government grants Canada offers look for the same basics:

  • You are registered and operating in Canada
  • You have a clear project plan and budget
  • Your business meets size and revenue limits
  • The project creates economic, innovation, or export impact

Grants rarely fund day‑to‑day operating losses. They fund specific, future activities.


Common Mistakes to Avoid

  1. Assuming all government funding is free money
    Some programs are repayable contributions or tax credits, not cash grants.

  2. Applying without reading eligible costs
    If your expenses don’t match the program rules, your application will fail.

  3. Missing stacking limits
    Many programs cap how much total government funding you can receive for one project.

  4. Waiting until the deadline
    Popular grants like CanExport can close early once funds are allocated.


Frequently Asked Questions

Q: Are government grants in Canada taxable?
Some grants are taxable income, while others reduce eligible expenses. Tax credits like SR&ED work differently. Always confirm with your accountant.

Q: Can startups apply for government grants in Canada?
Yes. Many innovation, hiring, and export programs accept early‑stage businesses, as long as they are incorporated and operating in Canada.

Q: Do I need a grant writer to apply?
Not always. Smaller programs can be handled internally. Larger grants may benefit from professional support, especially for technical or R&D projects.

Q: Can I apply for more than one grant at the same time?
Yes, as long as stacking rules are respected and costs are not double‑counted.


Government grants are just one part of the funding picture. Depending on your goals, you may also want to explore:

  • Businesses Funded by the Government
  • Mitacs Grants
  • Angel Investors Canada

Next Steps

There are thousands of active government grants Canada offers at any given time, but only a fraction will fit your business. GrantHub tracks 2,500+ active grant programs across Canada and helps match them to your location, industry, and business stage—so you can focus on the opportunities that actually apply to you.

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