Can You Combine Multiple Canadian Grants and Loans for One Project?

By GrantHub Research Team · · Lire en français

Can You Combine Multiple Canadian Grants and Loans for One Project?

Many Canadian business owners think they must choose just one grant or loan per project. That’s not always the case. In Canada, you can often combine several grants and loans for a single project, as long as you follow each program’s rules and don’t claim the same expense more than once.

Government funders expect you to use more than one source of financing. In fact, most large projects only happen because grants, loans, and tax credits are used together.


How Grant and Loan “Stacking” Works in Canada

Grant stacking means using more than one government funding program to help pay for one project. This can include:

  • Non-repayable grants
  • Government-backed loans
  • Tax credits and refunds
  • Wage subsidies or advisory support

The main rule is simple: you can’t get paid back twice for the same cost. Programs look at your whole project budget and how much public funding you get in total—not just what they give you.

Typical Stacking Rules You’ll See

Most Canadian funding programs have similar limits:

  • Maximum public funding: Usually, you can get 50% to 75% of your eligible project costs from public sources
  • Expense-level restrictions: Each cost can only be claimed once
  • Disclosure required: You must list all other funding sources in your application

Each program has its own rules, so always check the details.

Tools like GrantHub’s eligibility matcher can help you sort programs by province, industry, and stacking rules quickly and easily.


Real Examples of Combining Canadian Grants and Loans

Here’s how stacking works with some well-known federal programs.

Canada Digital Adoption Program (CDAP) + Other Funding

The Canada Digital Adoption Program (CDAP) helps small and medium-sized businesses invest in digital tools.

With CDAP, businesses may get:

  • A BDC CDAP Loan of up to $100,000 with 0% interest in the first year to support digital projects
  • Separate CDAP grant parts, like advisory support or wage subsidies, depending on the stream

CDAP allows you to combine:

  • CDAP advisory or wage support
  • The BDC CDAP Loan
  • Other federal or provincial programs, as long as they don’t pay for the same expense

As long as each funding source covers different eligible costs, you can combine them.

SR&ED Tax Credits Combined With Grants

The Scientific Research and Experimental Development (SR&ED) Tax Incentive Program gives tax credits for eligible research and development work in Canada.

Key stacking facts:

  • SR&ED can be combined with grants and loans
  • Any government help you get must be subtracted from your eligible SR&ED costs
  • You still get a benefit, but the credit is based on what you actually spent after other support

This makes SR&ED a common “second layer” after grants are used.

Grants + Loans Is Usually Easier Than Grants + Grants

Many funders are more flexible if you combine:

  • One or more grants, plus
  • A loan or repayable contribution

Loans are seen as financing, not direct government help, so they often help you stay under public funding caps.


What You Must Track When Combining Funding

If you want to combine several Canadian grants and loans for one project, keep your records clear and organized.

You will need:

  • A single project budget showing all costs
  • Details on which program pays for which expense
  • Proof that no expense is claimed more than once

Timing also matters. Some programs pay you back after you spend the money, while others give you funds in advance. See also:
How Long Do Canadian Grant Programs Take to Pay Out Funds?


Common Mistakes to Avoid

  1. Claiming the same invoice twice
    Even by accident, this can cause audits or force you to pay money back.

  2. Ignoring total public funding caps
    You might qualify for several programs but still go over the allowed percentage.

  3. Applying in the wrong order
    Some programs need you to get approval before you start spending.

  4. Forgetting to disclose other funding
    Not sharing this can make your agreement invalid later.


Frequently Asked Questions

Q: Can you combine multiple Canadian grants for one project?
Yes, as long as the total public funding stays within program limits and each grant pays for different eligible costs.

Q: Can I combine grants and loans for the same project?
Yes. This is common in Canada, and loans often make stacking easier since they are not counted as direct assistance.

Q: Does SR&ED allow stacking with other grants?
Yes. You must lower your SR&ED claim by the amount of government help received for the same work.

Q: Do provincial and federal programs allow stacking together?
Often yes. Federal-provincial stacking is common, especially for training, technology, and R&D projects.

Q: What happens if I exceed funding limits?
The funder may lower their contribution or ask you to pay back any extra funds.


  • What Business Expenses Are Eligible Across Canadian Grants and Loans?
  • Federal vs Provincial Workforce Training Grants: What Canadian Employers Should Use

Next Steps

Combining multiple Canadian grants and loans for one project is possible—and often a smart move—if you follow the rules. The tricky part is understanding how stacking works across different programs.

GrantHub tracks hundreds of active grant and loan programs across Canada and helps you see which ones fit together, based on your business, location, and project.

Was this article helpful?

Rate it so we can improve our content.

Canada Proactive Disclosure Data

400,000+ Companies Like Yours Have Received Billions in Grants

The Canadian government has funded over 400,000 businesses through 1.27 million grants and contributions. Check your eligibility in 60 seconds.