Ontario Business Funding: Grants, Loans, and Tax Credits Available Right Now

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Ontario Business Funding: Grants, Loans, and Tax Credits Available Right Now

If you run a business in Ontario, funding is likely top of mind. The province offers dozens of Ontario business funding programs each year, from non-repayable grants to loans, tax credits, and wage subsidies. In fact, Ontario businesses receive billions in combined provincial and federal support annually through programs delivered by the Province, FedDev Ontario, and national agencies.

This page is a hub. It explains the main types of Ontario business funding, who qualifies, and which programs are worth your time.


Ontario Business Funding Programs Explained (Grants, Loans, and More)

Ontario business funding is not one program. It’s a mix of supports, each designed for different stages and needs. Here’s how it breaks down.

1. Ontario Business Grants (Non-Repayable)

Grants are the most competitive form of Ontario business funding because you don’t repay them.

Common uses include:

  • Hiring and training staff
  • Export and market expansion
  • Research and development
  • Clean technology and energy efficiency
  • Innovation and commercialization

Real examples of Ontario grant funding:

  • Ontario Trade Together Fund
    Supports export-ready Ontario companies expanding into new markets. Funding typically covers a portion of eligible marketing, travel, and trade-related costs.

  • Mitacs Programs (Ontario-based projects)
    Ontario SMEs can receive tens of thousands of dollars per project to offset the cost of hiring graduate students and post‑docs for R&D work.

  • FedDev Ontario Regional Programs
    Offers repayable and non-repayable contributions for Southern Ontario businesses focused on innovation, scale-up, and productivity.

Tools like GrantHub’s eligibility matcher can help you filter Ontario business funding programs by industry, location, and business stage in seconds.


2. Ontario Small Business Loans and Financing

Not all Ontario business funding is free money. Loans often come with better terms than banks.

You’ll see:

  • Lower interest rates
  • Longer repayment periods
  • Flexible security requirements

Examples include:

  • Provincial and federally backed small business loans
  • Regional development financing through FedDev Ontario

Loans are often paired with grants, especially for scaling and expansion projects.


3. Ontario Tax Credits for Businesses

Tax credits are one of the most overlooked forms of Ontario business funding.

Key programs include:

  • Ontario Research and Development Tax Credit (ORDTC)
  • Ontario Innovation Tax Credit (OITC)

Eligible corporations can recover a percentage of qualifying R&D expenses through refundable or non-refundable credits.

These credits are especially valuable for technology, manufacturing, and life sciences companies.


4. Hiring and Wage Subsidies in Ontario

If payroll is your biggest cost, wage subsidies matter.

Ontario businesses can access:

  • Co‑op and internship wage funding
  • Youth and recent graduate hiring supports
  • Subsidies covering up to 50–70% of wages in some programs

For a deeper look, see our guide on Co‑op Student Funding in Ontario.


5. Clean Tech and Energy Funding

Ontario continues to fund projects that reduce emissions and improve efficiency.

Funding may support:

  • Energy-efficient equipment
  • Emissions reduction projects
  • Clean technology adoption

Programs vary by year and sector, but funding can cover a significant portion of project costs.

Related reading: Green Ontario Fund


Who Is Eligible for Ontario Business Funding?

While every program is different, most Ontario business funding programs require that you:

  • Operate and be registered in Ontario
  • Be a for-profit business (some programs allow not-for-profits)
  • Have a clear project with measurable outcomes
  • Be financially stable and compliant with taxes

Some programs target:

  • Small businesses under 500 employees
  • Incorporated companies only
  • Specific industries like manufacturing, tech, agri-food, or clean tech

Common Mistakes to Avoid

  1. Assuming all Ontario funding is a grant
    Many programs are loans or tax credits. Missing these limits your options.

  2. Applying without a defined project
    Most Ontario business funding is project-based, not general operating cash.

  3. Ignoring stacking rules
    Some programs limit how much government funding you can combine.

  4. Waiting until intake deadlines
    Many Ontario programs are first-come, first-served and close early.


Frequently Asked Questions

Q: Is there free money for small businesses in Ontario?
Yes. Ontario offers non-repayable grants, but they are competitive and project-based. Most businesses combine grants with loans or tax credits.

Q: Can startups get Ontario business funding?
Yes. Startups can qualify, especially for innovation, R&D, and hiring programs. Some grants require incorporated status and early revenue.

Q: Do sole proprietors qualify for Ontario grants?
Some programs allow sole proprietors, but many require incorporation. Always check eligibility before applying.

Q: How long does Ontario funding approval take?
Timelines vary. Grants can take 8–16 weeks or longer from submission to approval.

Q: Can I apply for more than one Ontario funding program?
Often yes, but stacking limits apply. This means total government support cannot exceed a set percentage of project costs.


Next Steps

Ontario business funding changes every year, and programs open and close without much notice. The key is knowing which programs match your business today, not last year.

GrantHub tracks 2,500+ active grant and funding programs across Canada — including Ontario-specific grants, loans, and tax credits — so you can quickly see what fits your business profile and next project.

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