Government Grants for New Business Owners in Canada (2025–2026)

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Government Grants for New Business Owners in Canada (2025–2026)

Starting a business in Canada is expensive. Early cash flow is tight, and traditional loans often require revenue you don’t have yet. The good news: government grants for new business owners can cover wages, R&D, and market expansion—often without repayment—if you know where to look and how to qualify.

This page is a startup funding hub. It focuses on federal programs new owners use most in their first 1–3 years, with current amounts and eligibility for 2025–2026.


Core Government Grants New Business Owners Should Know

Below are the most relevant government grants for new business owners at the federal level. These programs are commonly used by incorporated startups and early-stage SMEs across Canada.

CanExport SMEs — Up to $50,000 for Market Expansion

If your new business plans to sell outside Canada, CanExport SMEs is one of the most accessible grants.

What it offers

  • $10,000 to $50,000 per project
  • Covers up to 50% of eligible costs
  • Non-repayable if conditions are met

Eligible costs include

  • International market research
  • Trade shows and virtual missions
  • Translation and localization
  • Foreign marketing and IP protection

Who can apply

  • For-profit Canadian SMEs
  • 1–500 employees
  • Incorporated with a CRA business number
  • Clear export plan and capacity to scale

This grant is often used by tech startups, manufacturers, and consumer brands in their first export push.

Tools like GrantHub’s eligibility matcher can help you filter export grants by industry and target market in seconds.


Canada Summer Jobs — Wage Subsidies for Early Hiring

Hiring your first employee is a big step. Canada Summer Jobs helps reduce that risk.

What it offers

  • Wage subsidy for employees aged 15–30
  • Up to 50% of minimum wage for private-sector employers
  • Up to 100% for not-for-profits

Who qualifies

  • Private businesses with 50 or fewer full-time employees
  • Incorporated and operating in Canada
  • Summer placements, typically 8–16 weeks

For new business owners, this program is commonly used to hire:

  • Marketing assistants
  • Junior developers
  • Operations or admin support

NRC IRAP — Funding and Advisory Support for Innovative Startups

If your startup is building new technology, NRC IRAP is one of the most important programs in Canada.

What it offers

  • Non-repayable funding for R&D salaries and contractors
  • One-on-one support from an Industrial Technology Advisor (ITA)
  • Funding amounts vary by project scope (often six figures for scaling firms)

Who it’s for

  • Incorporated Canadian SMEs
  • Science- or engineering-based innovation
  • Clear commercialization potential

IRAP funding is competitive, but many startups begin with advisory services before receiving cash funding.


Other Government Funding New Business Owners Often Combine with Grants

Grants rarely work alone. New founders often stack them with other programs, such as:

  • Provincial startup grants and tax credits
  • Founder wage subsidies
  • R&D tax credits (SR&ED)
  • Sector-specific programs (clean tech, agri-food, digital)

For non-dilutive alternatives, see Apply for Grants in Canada and Government of Canada Money.


Common Mistakes to Avoid

1. Applying too early Many grants require incorporation, a business number, or early revenue. Applying before you’re eligible leads to automatic rejection.

2. Treating grants like free money Most programs require reporting, milestones, and proof of spending. Miss these and funding can be clawed back.

3. Ignoring stacking limits Some grants cap how much government funding you can combine. Always check total government assistance limits.

4. Using generic applications Programs like IRAP and CanExport expect tailored project plans. Recycled templates are easy to spot.


Frequently Asked Questions

Q: Are there government grants just for startups with no revenue?
Yes, but they are limited. Wage subsidies and advisory-based programs are more common at the pre-revenue stage, while cash grants often require some operating history.

Q: Do I have to repay government grants?
Most grants listed here are non-repayable if you meet the agreement terms. Wage subsidies and R&D funding are not loans.

Q: Can sole proprietors apply for these grants?
Most federal business grants require incorporation. Sole proprietors usually need to incorporate before applying.

Q: How long does approval take?
Timelines vary. Canada Summer Jobs follows fixed annual cycles, while IRAP and CanExport applications are reviewed on a rolling basis.

Q: Can I apply for more than one grant at the same time?
Yes. Many new business owners apply for wage subsidies and project grants in parallel, as long as costs are not double-funded.


Next Steps

Government grants for new business owners can cover hiring, innovation, and growth—but eligibility changes by province, industry, and business stage. GrantHub tracks 2,500+ active grant programs across Canada, so you can see which ones actually match your business profile before you apply.

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