Many Northern Ontario businesses know they need better technology to grow, but high upfront costs slow progress. Scale-up grants help close that gap by sharing the cost of new equipment, digital systems, and process improvements. In Northern Ontario, federal programs are designed to boost productivity and help firms compete beyond local markets.
Scale-up grants are not start-up funding. They are designed for established businesses that are ready to grow faster by improving how they operate. In Northern Ontario, the main federal program in this space is the Business Scale-up and Productivity (BSP) program, delivered by the Federal Economic Development Agency for Northern Ontario (FedNor).
According to FedNor, the BSP program aims to:
This makes BSP a strong fit for companies investing in automation, advanced manufacturing, digital tools, or new production processes.
Who can apply
FedNor prioritizes projects that clearly link technology adoption to productivity gains, including:
Eligible costs are those directly tied to the approved project, such as:
Because BSP funding is considered government assistance, it is generally taxable income, and you should confirm treatment with your accountant.
Funding amount
Tools like GrantHub’s eligibility matcher can help you filter programs by province and industry in seconds, especially if you are comparing BSP with other scale-up or productivity-focused grants.
Scale-up grants in Northern Ontario focus on technology because productivity gains are measurable and long-lasting. Examples of supported outcomes include:
For Northern Ontario businesses facing higher transportation and labour costs, these productivity gains can make the difference between staying regional and expanding nationally.
Applying too early
BSP is not for early-stage start-ups. If you do not yet have steady revenues or a clear growth plan, your application is unlikely to succeed.
Proposing vague technology upgrades
FedNor looks for clear links between the technology and productivity results. “Upgrading our systems” is not enough. You need to explain how output, costs, or capacity will change.
Skipping the FedNor discussion
Due to limited funding, pre-application discussions are strongly encouraged. Applying without speaking to a FedNor officer can waste time.
Including ineligible business activities
Retail and service-based businesses are excluded. Including these activities in your project scope can disqualify your application.
Q: Who is the Business Scale-up and Productivity program best suited for?
The program is best for established, for-profit businesses in Northern Ontario that are ready to grow through technology adoption and market expansion. It is not designed for start-ups or retail businesses.
Q: Do I need to adopt brand-new technology to qualify?
No. The program supports both adoption and adaptation of existing technologies, as long as they lead to measurable productivity improvements.
Q: How much funding can my business receive?
There is no fixed amount. Funding levels depend on your project scope, budget, and current program availability, which is why early discussions with FedNor are recommended.
Q: Are wages or operating expenses covered?
Only costs directly related to the approved project are eligible. General operating expenses are typically not covered unless clearly tied to the technology or process improvement.
Q: Is BSP funding repayable?
Funding conditions vary by project. You should confirm whether contributions are repayable during discussions with FedNor.
GrantHub tracks hundreds of active grant programs across Canada — check which ones match your business profile.
If you are exploring related funding options, you may find these helpful:
Scale-up grants play a key role in helping Northern Ontario businesses invest in technology and improve productivity without carrying all the risk alone. If you are planning a growth project, start by confirming eligibility and timing. GrantHub helps you compare scale-up and productivity programs so you can focus on the options that fit your business and your region.
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